DURBAN – Mr Price’s total retail sales, including sales to franchisees, grew by 6.5 percent to R6.9 billion for the four months to August 4, boosted by Milady’s women fashion store, which grew its retail sales by 9.1 percent during the period.
Group cash sales increased 7 percent, while credit sales were up by 4.1 percent. Cash sales now constitute 82.9 percent of the group’s overall sales.
Online sales continue to be popular among the consumers as it reported overall growth of 28.1 percent to R83.2 million during the period.
The MRP Apparel online channel was the star performer, achieving online sales growth of 37.6 percent, followed by MRP Sport with 31.3 percent growth and MRP Home was up by 19.5 percent.
The group said South African sales increased by 6.4 percent to R6.4bn, while sales in non-South African corporate owned stores grew 9.1 percent to R520.8m, helped by the inclusion of previously franchised Kenyan stores from late May 2018.
“Excluding Kenya, corporate-owned store growth was 1.8 percent,” the group said.
Sales to franchisees decreased 30.9 percent.
The group said other income grew by 23.5 percent to R459.4m, while debtors’ interest and fees were up by 6.9 percent to R160.1m. Insurance revenue increased by 6.9 percent to R85.5m, and cellular and mobile revenue increased by 56.7 percent to R196.5m, mainly as a result of the ongoing rollout of in-store cellular kiosks.
Despite reporting an improved growth in the four-month period, Mr Price said the retail environment was expected to remain highly competitive until more robust economic growth is attained in South Africa.
“The consumers have been under pressure as a result of low economic growth, fuel price increases and value added tax increase ,” the group said.
Mr Price shares closed 4.44 percent lower on the JSE yesterday at R229.12.