Mr Price Group App Division grows

The Apparel Division, which consists of Mr Price Sport, Mr Price and Miladys, grew sales by 21.8% with retail selling price inflation of 10.67% and operating margin improving to 13.8% of sales (previously 12.7%).

Mr Price Sport opened another 15 stores during the financial year and now operates 23 stores. The division achieved sales of R240-bn from a weighted average trading space of 22 396m2. They recorded a retail selling deflation of 0.7%, which was mostly the result of changes in selling price points to increase the division’s value proposition as well as a reduction in the sale of higher ticket items brought about by consumers’ lower disposable incomes.

Mr Price grew sales by 19.7% to R3.7-bn with an increase in weighted average trading space of 6.5%. Comparable sales rose 16.2% and retail selling inflation was 11.6%, which was driven by changes in the mix of goods sold, with increases in sales of higher price point units such as pants and jackets. The division sold 6.7% more units than the previous year. The division also opened eight ‘express’ stores - a concept which enables Mr Price to enter trading areas not previously considered through lower operating, capital expenditure and rental costs. Significant growth is expected in this area.

Miladys sales grew by 10.2% to R94-m with comparable sales growing 4.7%. The division opened 12 stores and grew weighted average trading space by 8.9%. Unit sales growth was 5.7% and the experienced retail selling price inflation of 4,7%.