Mr Price reports market share growth as it keeps costs down
The retailer says retail sales and other income grew 3.5% to R7.4bn in the quarter to end December 28, adding it intends to keep prices low
17 January 2020 - 07:49
bykarl gernetzky
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Retailer Mr Price said on Friday it had gained market share in its third quarter to December 28, and is keeping prices low to entrench its position in a trading environment where consumers are cutting back on non-essential items.
Retail sales and other income grew 3.5% to R7.4bn during the quarter, with the group saying it had grown market share in both October and November, months for which Retailers' Liaison Committee (RLC) data is available.
The group said it was focused on inventory management, had had kept prices unchanged from the same period in 2018, which had the desired effect of increasing unit growth in Mr Price Apparel by 5.3% — the group’s largest division.
Consumers continue to be constrained, highlighted by the Bureau for Economic Research consumer confidence index remaining negative at -7 index points in the fourth quarter, Mr Price said.
“The group sees this as an opportunity to continue gaining market share and building on the improved performance in the third quarter, by offering quality merchandise at everyday low prices,” the statement read.
The group reported that group retail sales momentum had continued “to build positively” for the period to January 15.
In morning trade on Friday, shares in Mr Price were 4.31% down at R184.10, putting it on track for its worst one-day performance in almost five months.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Mr Price reports market share growth as it keeps costs down
The retailer says retail sales and other income grew 3.5% to R7.4bn in the quarter to end December 28, adding it intends to keep prices low
Retailer Mr Price said on Friday it had gained market share in its third quarter to December 28, and is keeping prices low to entrench its position in a trading environment where consumers are cutting back on non-essential items.
Retail sales and other income grew 3.5% to R7.4bn during the quarter, with the group saying it had grown market share in both October and November, months for which Retailers' Liaison Committee (RLC) data is available.
The group said it was focused on inventory management, had had kept prices unchanged from the same period in 2018, which had the desired effect of increasing unit growth in Mr Price Apparel by 5.3% — the group’s largest division.
Consumers continue to be constrained, highlighted by the Bureau for Economic Research consumer confidence index remaining negative at -7 index points in the fourth quarter, Mr Price said.
“The group sees this as an opportunity to continue gaining market share and building on the improved performance in the third quarter, by offering quality merchandise at everyday low prices,” the statement read.
The group reported that group retail sales momentum had continued “to build positively” for the period to January 15.
In morning trade on Friday, shares in Mr Price were 4.31% down at R184.10, putting it on track for its worst one-day performance in almost five months.
gernetzkyk@businesslive.co.za
More pain could be in store for the retail sector
Mr Price share price bounces back after transparency on what went wrong
Stock problems cut into Mr Price’s profits
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
SA retailers likely to lose out if they avoid e-commerce
Mr Price faces R20m in potential exposure amid supplier probe
Mr Price shares plunge after retailer warns of lower sales of apparel
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.