Fashioning a material turnaround
Mr Price: what went wrong at SA's retail darling
The retailer has experienced a challenging time, and opinions differ about whether it is over the worst
When Mr Price posted its full-year results last week, its share price rose nearly 4% — and spiked to an even higher level in the course of the day. This was in spite of it posting a 12% drop in earnings. The earnings decrease, its first in 16 years, marks a dismal milestone for the company, which has for years been the darling of apparel retailers. The market appears to hold the view that Mr Price is in a turnaround phase and is focused on regaining market share from competitors. It’s not quite clear what this involves other than sourcing better products to appeal to more shoppers, but the increase in share price suggests buy-in. The retailer has been fighting in a maelstrom of frenzied price discounts, as its traditional competitors have promoted these more heavily than before in a tough landscape. Consumers are under pressure, and international chains such as H&M, Cotton On and Zara continue to reshape the landscape, offering fast fashion. Mr Price, which also sells homeware and f...