Marx thinks the group is a clear winner in the discretionary retail space. She also noted that a Shein and Temu fatigue is kicking in across South Africa, which Mr Price can benefit from. <\/p>\n\n\n\n
Shein and Temu offer quick fashion imports at often too-good-to-be-true price points. However, consumers are often left disappointed at the quality of items received\u2014if they receive them at all.<\/p>\n\n\n\n
While this has served markets looking for cheaper items, recent import changes have severely undercut this, meaning consumers are now starting to pay higher prices for the same questionable result.<\/p>\n\n\n\n
Following the recent release a disappointing trading statement, Marx believes there is a good opportunity to buy Mr Price, which operates in a similar low-cost fast-fashion segment.<\/p>\n\n\n\n
The retailer’s latest trading statement for the first quarter from 30 March 2025 to 28 June 2025 showed that the group\u2019s retail sales increased by 6.3% to R9 billion, with 10 basis points of market share growth.\u00a0<\/p>\n\n\n\n
April (11.3%) and May (11.9%) both saw strong sales growth over the period, with the group benefiting from the timing shift of the Easter holidays into April.<\/p>\n\n\n\n
May benefited from a timely winter season against a weak base of negative sales growth as many cut back spending ahead of the 2024 national election. <\/p>\n\n\n\n
However, in June 2025, the group saw its retail sales decline by 5.1% against a firm base of +12.7%. <\/p>\n\n\n\n
Mt Price said that the group\u2019s strong performance in June 2024 was mainly due to the late onset of winter, which created pent-up demand in the first two weeks of the month.\u00a0<\/p>\n\n\n\n
It expected softer sales in the month, but the impact of the shift in school holidays from the last two weeks in July was greater than expected.\u00a0<\/p>\n\n\n\n
Higher markdown activity was required from Mr Price, a trend observed by most in the industry. <\/p>\n\n\n\n
Despite the challenging month, Marx is optimistic about the group\u2019s performance.\u00a0<\/p>\n\n\n\n
\u201cOne bad month does not a trend make. They had a very poor June, but they expect July (+12.9%) to be a lot stronger,\u201d said Marx. <\/p>\n\n\n\n
\u201cI think momentum has returned from a retail sales perspective and Mr Price is also gaining market share.\u201d <\/p>\n\n\n\n
Group’s optimism <\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/image-105.png\")
<\/a>FNB Wealth and Investments’ Chantal Marx<\/figcaption><\/figure><\/div>\n\n\nMr Price is also optimistic about its future, with the group\u2019s store footprint growing to 3,061 stores over the quarter. <\/p>\n\n\n\n
The group has been rapidly expanding its store base since mid-2021, when it had 1,400 outlets. The growth was fuelled by strategic acquistions and further investment in existing brands.\u00a0<\/p>\n\n\n\n
It purchased Yuppiechef, Power Fashion and Studio 88 in the period while expanding into standalone Mr Price Kids and Mr Price Baby stores.\u00a0<\/p>\n\n\n\n
This came despite a challenging operating environment, with the local business conditions remaining disruptive, especially in 2024 and 2025.\u00a0<\/p>\n\n\n\n
The group has flagged the potential disruption from proposed trade tariffs of over 30% from the US, which has clouded the growth trajectory moving forward.<\/p>\n\n\n\n
\u201cThe volatility of the domestic economic landscape makes the outlook for the remainder of the financial year likely to be characterised by inconsistent consumer trends,\u201d it said.<\/p>\n\n\n\n
\u201cThe short-term relief measures of low inflation and interest rates will intersect with an increasingly firm H2 base, as well as rising food and fuel prices, which will impact disposable income.\u201d <\/p>\n\n\n\n
Nevertheless, the group remains optimistic that it can continue to achieve margin-accretive market share gains. Annual space growth is anticipated to increase on a weighted average basis by roughly 4%.<\/p>\n\n\n\n
Mr Price said it will primarily focuses on driving consistent performance in the Apparel and Telecoms segments. Strategic improvements in the homeware segment are showing positive progress.\u00a0<\/p>\n\n\n\n
It said it remains confident it can achieve its medium-term targets and deliver sustainable long-term returns.<\/p>\n\n\n\n
\n\n\n\nRevenue<\/h2>\n\n\n
<\/a>Mr Price is also optimistic about its future, with the group\u2019s store footprint growing to 3,061 stores over the quarter. <\/p>\n\n\n\n
The group has been rapidly expanding its store base since mid-2021, when it had 1,400 outlets. The growth was fuelled by strategic acquistions and further investment in existing brands.\u00a0<\/p>\n\n\n\n
It purchased Yuppiechef, Power Fashion and Studio 88 in the period while expanding into standalone Mr Price Kids and Mr Price Baby stores.\u00a0<\/p>\n\n\n\n
This came despite a challenging operating environment, with the local business conditions remaining disruptive, especially in 2024 and 2025.\u00a0<\/p>\n\n\n\n
The group has flagged the potential disruption from proposed trade tariffs of over 30% from the US, which has clouded the growth trajectory moving forward.<\/p>\n\n\n\n
\u201cThe volatility of the domestic economic landscape makes the outlook for the remainder of the financial year likely to be characterised by inconsistent consumer trends,\u201d it said.<\/p>\n\n\n\n
\u201cThe short-term relief measures of low inflation and interest rates will intersect with an increasingly firm H2 base, as well as rising food and fuel prices, which will impact disposable income.\u201d <\/p>\n\n\n\n
Nevertheless, the group remains optimistic that it can continue to achieve margin-accretive market share gains. Annual space growth is anticipated to increase on a weighted average basis by roughly 4%.<\/p>\n\n\n\n
Mr Price said it will primarily focuses on driving consistent performance in the Apparel and Telecoms segments. Strategic improvements in the homeware segment are showing positive progress.\u00a0<\/p>\n\n\n\n
It said it remains confident it can achieve its medium-term targets and deliver sustainable long-term returns.<\/p>\n\n\n\n
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