Home business Retail Firm Mr Price Group Reports Sales Boom
Retail Firm Mr Price Group Reports Sales Boom
Mr Price
Mr Price Group is a South African-based retail company founded in 1985 by Stewart B. Cohen and Laurie J. Chiappini. Since the company went public, it has undergone an incredible evolution. The company currently specializes in selling cosmetics, homeware, apparel, and sportswear merchandise across Africa and other parts of the world.
Once again, Mr Price is trending after registering a sales boom after 53 weeks, which ended on April 3rd, 2021. During the period, the company doubled the sales of sportswear and core apparel, its main product offering.
According to Mark Blair, the company's CEO, the red cap logo establishment has remained profitable for the past nine years. That is because they always strive to maintain customer satisfaction at all levels. According to Mr Price reports, the company has seen a 64.1% increase in online sales, making it one of the few companies that made profits during the pandemic.
Other industries that are currently thriving in South Africa include the entertainment and media industry. According to the recent analysis, the sector is projected to hit a revenue mark of R171 billion by 2023. A rise of about R43 billion compared to the revenue of R128.9 billion registered in 2018.
Another key sector currently experiencing a boom in South Africa is the IT industry, speculated to go up by 5.2%. Finally, the iGaming industry is also expected to increase its revenue to $2.3 billion by 2023 with many best online casinos in South Africa on the rise.
However, that will not be the first time the Durban-based apparel and cosmetic company is making staggering sales. For instance, in 2014, the company saw an increase of 80% in cash sales. That was soon after the impressive performance that saw them become a finalist in the world retail awards.
Seemingly, Mr Price group has found ways to inject new talent into the factory to maintain its high sales. Additional milestones the company experienced during the 53 weeks include the doubling of daily orders. Mr Price Group processed a purchase every 58 seconds, with the Black Friday weekend reducing the time significantly to 11 seconds.
Furthermore, online traffic on Mr Price's official site went up by 65.7%. The report also indicated that the Mr Price mobile platform generated 86.4% of the traffic. That saw Mr Price Group maintain the highest share across all South African omnichannel apparel brands. However, the year did not end with a flawless record. Due to the pandemic, credit sales saw a 14.5% sales decrease, whereas cash sales dropped by 0.2%.
To increase the company's efficiency and improve general retail sales, Mr Price Group opened an additional 54 stores. All together increasing the number of stores owned by the corporation to 1418. This is while considering that in 2020, all the South African stores were forced to close down due to the level 5 lockdown enacted in the country.
During the lockdown period alone, Mr Price Group made a loss of about R1.8 billion.
The company CEO was keen to mention that their strategic investment into important sectors significantly contributed to the positive numbers reflected in the FY2021 report.
However, he vouched that the company and its management team will continue coming up and implementing ideas to see Mr Price Group maintain better performance and increase customer experience. They also made moves that are meant to enhance the future operation and profitability of the company.
For instance, Mr Price Group acquired Yuppiechef and Power Fashion. Both companies display a high potential of increasing Mr Price Group's revenue in the FY2022. At the moment, Mr Price Group has a significant online presence compared to other apparel brands. Moreover, according to Google rankings, the Mr Price Group app is the number one apparel application in South Africa.
Despite the pandemic, Mr Price Group seems to have fared well. According to the FY2021 report, only the first wave of the pandemic shook the business operations. However, by the time the second wave was hitting, the company had stabilized, with profits from operating companies increasing by 10.9%.
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