Business

Mr Price takes control of over 2,000 stores in 7 countries

Luke Fraser

 ·23 Jul 2026

Mr Price has fully acquired the German value retailer NKD, adding over 2,000 stores to its network.

The group announced a controversial plan to acquire NKD in 2025 for R9.6 billion, which drew the ire of shareholders given the deal’s high debt level and NKD’s weaker financials.

NKD operates over 2,000 stores across Germany, Austria, Italy, Slovenia, Croatia, the Czech Republic, and Poland.

The deal has now gone through, and Mr Price has released a trading update for the quarter ended 9 March 2026 to 27 June 2026, which includes NKD.

During the quarter, the group’s retail sales increased by 45.3% to R13.1 Billion, and other income grew by 12.5% to R352 million.

The group said that the retail environment in both African and European markets remained unpredictable.

The prolonged geopolitical uncertainty stemming from the US-Iran conflict weighed on consumer confidence, leading to cautious spending.

Inflation rose to two-year highs in South Africa and Germany, while higher interest rates also impact consumers’ disposable income.

That said, the group notes that current economic conditions have supported the resilience
of the value retail sector.

The group also remains confident that its portfolio of 16 trading chains is well-positioned to outperform in their respective markets.

In Europe, retail sales, 100% of which were cash, totalled R3.8 billion, with the group stating that NKD outperformed the total apparel market and the value segment in Germany.

While 21 NKD stores were closed during the period, 23 were opened, increasing the total footprint to 2,156 stores. Its management remains confident of hitting its annual store growth targets

The group added that NKD exited the quarter with a clean stock position and management is comfortable with its closing inventory.

“NKD management is focused on operational excellence and delivery of strategic objectives. The process of reducing NKD’s cost of debt is well advanced,” said Mr Price,

Back home

Across the group, excluding NKD, total retail sales grew 3.2% to R9.3 billion, while non-South African corporate-owned store sales decreased by 0.3%.

Total store sales also rose by 3.1%, while online sales rose 4.7%, contributing 2.4% of total retail sales.

The group’s overall store footprint rose by 32 stores on a net basis, and the total footprint expanded to 3,214 stores. Trading space also increased 3.8% on an annual weighted average basis.

Cash sales, which constitute 87.5% of total retail sales, increased 3.1%, while credit sales increased 3.8%.

The new account approval rate dropped by 50 basis points to 22.8%, with the group stating that it is being cautious with its credit granting in a constrained consumer environment.

While the apparel segment grew by 3.4% over the period, it remains the largest segment in South Africa, accounting for 78.8% of all retail sales.

The telecoms segment showed the opposite trend, growing 11.2% over the period, but it still only accounts for only 3.9% of all retail sales.

“The global macroeconomic environment remains uncertain as geopolitical tensions continue to fluctuate with low expectations of a near-term resolution,” the group said.

“The resultant inflationary pressures and potential for further interest rate increases are expected to continue to weigh on consumer confidence and discretionary spending across the group’s key
markets.”

The group’s trading conditions are thus expected to remain tough and unpredictable over the balance of the financial year.