MR PRICE GROUP
Mr Price Group's corporate history began in 1885 with the opening of the first John Orrs stores. The history most relevant to the group's current operations began in 1986 with the Founders, Laurie Chiappini and Stewart Cohen.
The Group retails apparel, homeware and sportswear through owned and franchised stores and online channels in Africa and Australia. Merchandise is predominantly own-branded and targeted at younger customers in the mid to upper LSM categories.
Our business model is synonymous with offering fashionable merchandise at "everyday low prices".
How do we satisfy our customers’ need for fashion?
Specialist trend teams, frequent international travel and thorough research
Active dialogues through social and digital media
Responding to customers’ changing fashion needs
Product testing before making significant merchandise commitments
Slow moving merchandise cleared to make way for fresh, new merchandise
The value model is at the very core of the group’s existence. Being a value retailer means lower markups and selling higher volumes in order to offer "excellent value".
Increasing sales + low overhead structure = acceptable operating margins
Quality and fashion offered at the best price
Lower mark-ups in order to offer “everyday low prices”
Maintain balance by incurring costs for future growth, often ahead of revenue generation
Large order quantities and higher sales volumes to keep input prices low
Retail predominantly own-branded merchandise
Remaining a cash-driven retailer with cash sales > 80% of total sales
A high cash sales component means:
Less impacted by the cyclical nature of retail
Not dependent on credit to drive sales, particularly during poor economic times
Less exposed to bad debt
Able to fund future growth without incurring debt
Strong cash flows will support future growth and maintain an appropriate dividend payout ratio.
The group’s next growth phase will be driven by:
• the continued search for well positioned trading locations;
• expanding high trading density stores and extraction from unprofitable space;
• internationalisation of the business, initially via Africa; and
• engaging customers via alternative communication channels.
These initiatives will require us to increase our investment in information technology systems, supply chain processes and people development, which will all produce significant efficiency gains and added value.
Sustainability is important to the group’s long-term prosperity. It has arisen from the need to ensure it continues to prosper within an increasingly pressurised and volatile external environment, by developing appropriate competencies and capacities. The sustainability journey has helped the group gain a deeper understanding of the environment in which it operates, clarifying the specific internal and external issues most critical to long-term sustainability.
The board has acknowledged the alignment between the group investing its resources in a manner that will set the foundation for long-term sustainable growth and financial return for shareholders. In so doing, the retail industry, the broader community and the environment will all benefit, while the group will aid in achieving certain South African national priorities. Although the sustainability journey, with its broader and more formal framework, has brought about fresh thinking, it has confirmed the belief that a long-term focus is well entrenched in the business. This is mainly due to the group’s strategic planning process and the identification of key imperatives – factors that must be successfully addressed for the group to achieve its goals. The next step in the process will be to report targets and measurement indicators for key sustainability issues.
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Tough economy put a chill on Mr Price retail sales
23/08/2019 - 09:24
A tough economic climate has put pressure on Mr Price's fashion retail sales, as customer spending remained constrained, the company said in a trading statement for the first four months of its financial year ended March 28.
Mr Price rethinks international strategy after leaving Australia
03/06/2019 - 13:52
Mr Price Group’s new CEO wants the retailer to take a new approach to offshore growth after the group pulled the plug on its fledgling Australian business and as it considers doing the same in Poland.
Mr Price Group's shares rally on annual results
31/05/2019 - 10:16
Mr Price Group’s shares opened sharply higher after the company raised its annual dividend thanks to better earnings.
Mr Price boosted by improved perception
27/11/2018 - 08:23
Improved consumer perception of Mr Price's quality and fashion helped it grow sales and profit in the first half of its 2019 financial year.
Mr Price CEO to retire
18/10/2018 - 08:41
Mr Price CEO Stuart Bird will be succeeded by CFO Mark Blair on January 1, the retailer announced.
Mr Price cuts final dividend despite double-digit profit growth
08/06/2018 - 09:32
After generously raising its interim dividend by 22%, Mr Price cut its final dividend by 6%.
Mr Price bounces back with sales surge
18/01/2018 - 08:43
Mr Price outperformed other retailers in the three months to December, recording 8.3% growth in sales.
Shares in Mr Price benefit from upbeat announcement
07/11/2017 - 10:21
Retail group Mr Price’s share price jumped 11% to R169.99 on Tuesday morning after it said interim earnings grew by up to 25%.
Mr Price wins in battle against slowdown
04/09/2017 - 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.
Mr Price says clothing division is stealing back market share
01/09/2017 - 10:34
Clothing and homeware retailer Mr Price says it is making headway in its attempt to regain market share lost by its clothing units, MRP Apparel and Milady’s.