Johannesburg – Clothing and homeware retailer Mr
Price says income grew 0.4 percent in the three months to December, while inflation was above 10 percent.
This comes
despite December usually being a bonanza period for retailers because of the
festive season and January’s school open.
In a
statement published on Tuesday, the company said total sales came in at R6.4
billion, while retail sales were R6.1 billion, 0.5 lower year-on-year.
Stripping
out the bonus of 53 weeks in the year to April, Mr Price said sales growth in
its wholly-owned stores came in at between 5 percent and -0.6 percent.
All its
brands, which includes Miladys and Sheet
Street, experienced declines when it comes to
comparable store sales – which strips out additional stores, with the exception
of Sheet Street.
On the same
like-for-like basis, monthly sales growth reflected an improving trend in
festive season trade. Group sales in December increased by 3.9 percent.
Cash sales,
which constitute 83.2 percent of total sales, decreased by 0.5 percent. Credit
sales growth, which had slowed significantly as a result of consumer caution
and legislative changes impacting new account applications, showed an
improvement from the reduction at the half year, and increased by 0.3 percent
over the corresponding period.
The
debtors’ book, which grew by 1.8 percent at period end, continued its positive
performance, with collections for the quarter exceeding forecast.
Mr Price
notes the difficult trading environment experienced previously has extended
into the second half.
“Poor
economic growth, low levels of consumer confidence and higher selling prices
driven by a weak and volatile exchange rate has resulted in a very competitive
retail environment, with persisting high levels of price discounting and
promotional activity.”
Retail selling
price inflation for the period was 10.8 percent.
Mr Price
says any improvement in economic growth and consumer health is likely to be
gradual. “Despite this, the group is hopeful that a more settled economic environment
will aid planning and result in lower merchandise input costs.”
BUSINESS REPORT ONLINE