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Despite the third wave of the pandemic, load shedding, the July upheaval, and global supply chain delays, value retailer Mr Price has seen sales and profitability growth approach pre-Covid-19 levels in the previous 26 weeks.
The company presented its intermediate results for the 26 weeks ending October 2, 2021 on Thursday. Retail sales surged by 37.8 percent throughout the time, and by 17.4 percent when compared to 2020, according to the figures.
Cash sales increased by 38.2 percent, while internet sales more than doubled from 2020, with a 2.9 percent increase in retail sales contribution.
Mr. Price’s diluted headline earnings per share climbed by 33.5 percent, and the company issued an interim gross cash dividend of 282.4 cents per share, up 34.4percent from the previous interim in 2020.
Retail sales and other revenue (RSOI) in the clothes sector surged by 42.6 percent to R8.5 billion, while RSOI in the homeware segment jumped by 27.3 percent to R3 billion.
During that time, the company established 48 new locations and plans to reopen 96 of its 111 stores that were looted during the riots in KwaZulu-Natal and Gauteng by the end of November.
Due to extensive damage, the last 15 stores are expected to reopen next year. The turmoil resulted in an R320 million loss in retail sales, and the shop has subsequently received R235 million in interim insurance reimbursements and a R92 million business interruption compensation from the South African Special Risks Insurance Association (Sasria).
“The group has proven its operational versatility over the last 18 months. Despite the challenges … it entered the high summer season (October to December 2021) with fresh and available stock, made possible by strategic timing buffers built into ordering processes and its high volume of units sourced in South Africa,” it said.
Story by : Norvisi Mawunyegah