Advertise with fastmoving.co.za
 
 

Clothing sales growth outstripped Stats SA’s figures for the sector, but sales fell at the homeware division
Clothing sales growth outstripped Stats SA’s figures for the sector, but sales fell at the homeware division

Mr Price wins in battle against slowdown

RETAILER NEWS

By Alistair Anderson - Sep 4th 2017, 08:18

Retailer Mr Price’s short-term strategic response to tough, low-growth market conditions picked up momentum in the half-year to August, a trading update showed on Friday. 

“As reported at the year-end results presentation in May 2017, given the current low-growth economy and resultant poor retail environment, the most significant near-term opportunity is to regain lost market share in the two divisions, MRP Apparel and Miladys, which underperformed in the previous financial year,” the group said.

The group reported in the trading update that for the first four months of its 2018 financial year, total retail sales were up 6.2% in the 18 weeks to August 5. For April, May and June, MRP Apparel and Miladys reported sales growth of 10.1% at current prices, far ahead of the 4.8% growth that Statistics SA reported for the retail sector.

The trading statement was well received, with Mr Price’s share price closing 3.45% higher at R187.50 on Friday.

Sales growth in the overall apparel segment, which includes MRP Sport, was 8.7% in the 18 weeks to August 5. The homeware division struggled, however, with sales declining 1%, due to a 2.1% fall in sales at MRP Home, partially offset by a 1.7% increase at Sheet Street.

Online sales were 6.4% higher. Those at MRP Sport and MRP Home growth tracked physical store sales growth, while MRP Apparel recorded very strong growth of 20.1%.

Group cash sales increased 6.3%, making up 82.6% of total sales. Credit sales increased 5.4%. Weighted average trading space was 2.6% higher.

Other income grew 3.4%, to R372.0m. Debtors’ interest and fees grew 7.7% and insurance revenue climbed 18%.

A temporary slowdown in cellular revenue growth, which fell 8.1%, resulted from a focus on process improvements and product mix changes.

Commentators expect some respite for the retailer sector in the last quarter of 2017.

“The interest rate cut and lower inflation numbers should see conditions improve for consumers overall,” said Old Mutual Investment Group’s Meryl Pick.
© BusinessLIVE MMXVII 

Read more about: trade | retailer | retail | mr price

Related News

Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.

Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.

Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.

Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.

Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.