South Africa’s Mr Price Q3 sales jump on Studio 88 acquisition

Mr Price acquired Studio 88 in 2022 to gain further exposure to a younger consumer market with more spending power and taste for branded sneakers and T-shirts. Excluding the impact from Studio 88, group retail sales were only up by 1.2% as stubborn “inflation and rising interest rates and negative real wage growth resulted in continued financial constraint…

South African budget fashion retailer Mr Price MRPJ.J reported on Friday a 34% surge in third-quarter sales, boosted mostly by its recent acquisition of branded footwear and clothing company Studio 88 Group.

During the reported period ended Dec. 31, the group’s retail sales and other income grew to 12.4 bln rand ($717.75 mln), the highest third-quarter sales achieved in the group’s history, the clothing and homewares retailer said.

Mr Price acquired Studio 88 in 2022 to gain further exposure to a younger consumer market with more spending power and taste for branded sneakers and T-shirts.

Excluding the impact from Studio 88, group retail sales were only up by 1.2% as stubborn “inflation and rising interest rates and negative real wage growth resulted in continued financial constraint for consumers,” Mr Price said.

Severe power cuts affected peak holiday trading as the sector lost significant trading hours and inhibited sales growth, it added.

“The impact of load shedding (power cuts) can be seen in the significant variances in sales growth between stores that have backup power and those that do not. The group has taken urgent steps to limit the effect of load shedding, albeit at considerable cost,” Mr Price said.

($1 = 17.2761 rand)

(Reporting by Nqobile Dludla; Editing by Clarence Fernandez and Sherry Jacob-Phillips)

ANA NEWS WIRE Disclaimer:
The African News Agency (ANA) is a news wire service and therefore subscribes to the highest standards of journalism as it relates to accuracy, fairness and impartiality.
ANA strives to provide accurate, well sourced and reliable information across Text, Images and Video. Where errors do appear, ANA will seek to correct these timeously and transparently.
The ANA platform also contains news and information from third party sources. ANA has sought to procure reliable content from trusted news sources but cannot be held responsible for the accuracy and opinions provided by such sources on the ANA platform or linked sites.
The content provided for on the ANA News Wire platform, both through the ANA news operation and via its third party sources, are for the sole use of authorised subscribers and partners. Unauthorised access to and usage of ANA content will be subject to legal steps. ANA reserves its rights in this regard.
ANA makes every effort to ensure that the website is up and running smoothly at all times, however ANA does not take responsibility for, and will not be held liable for times when the website is temporarily unavailable due to technical issues that are beyond our control.