Clothing retailer grows into a R1.2 billion telecoms giant in 5 years
Mr Price released its annual financial results on Thursday and reported that its telecoms segment exceeded a billion rand for the first time.
The group’s revenue increased 23% to R28.1 billion, of which Mr Price Cellular and Powercell accounted for R1.2 billion, having grown 34.4% for the 52 weeks ended 2 April 2022.
“Mr Price Cellular, launched in 2017, has reported exponential growth since inception and is now available in 374 stores with promising growth opportunities, most notably the rollout of standalone stores,” the company reported.
“Cellular handsets and accessories gained 130 basis points of market share according to Growth for Knowledge (1.3 percentage points) — 190bps including Powercell in Power Fashion,” it stated.
Mr Price said this is a significant gain considering the disruption caused by global supply chain challenges and the civil unrest in KwaZulu-Natal and Gauteng during July 2021.
According to the Retailers’ Liaison Committee, the group reported a 1.4% percentage point gain in market share.
The retailer also saw significant gains online, increasing market share by 70 basis points to 13.3%.
Online sales grew 48.2% and contributed 2.9% of retail sales.
Citing Similar Web stats for April 2021 – March 2022, Mr Price said its online growth was second-highest behind Takealot among omnichannel and pure-play retailers.
“Its nearly six million loyal social media followers grew by double-digits,” Mr Price stated.
“The Mr Price mobile app remains the highest-ranked South African fashion shopping app on the Google Play store, with customer usage up 27.3% according to Similar Web.”
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