Staff Writer
Africa’s retail market has delivered stronger-than-expected growth for South Africa-based fashion and value retailer Mr Price Group, with sales performance across the continent outperforming broader retail market growth during the first quarter of its 2027 financial year.
The group reported that retail sales in Africa, excluding its newly acquired European business NKD, increased by 3.2% to R9.3 billion for the 13 weeks ended 27 June 2026, ahead of the Retailers’ Liaison Committee (RLC) retail sales growth of 0.8%.
Mr Price Group’s overall retail sales surged 45.3% to R13.1 billion, boosted by the acquisition of Pegasus Group Holding GmbH, which operates the NKD retail business in Europe. Other income increased 12.5% to R352 million during the period.
“The objective of growing sales ahead of the market but not at the expense of gross margin was achieved,” the company said, noting that African gross margin expanded by 40 basis points during the quarter.
The company said its performance reflected resilience in the value retail sector despite challenging economic conditions across its major markets, including South Africa and Germany.
“Current economic conditions continue to reinforce the resilience of the value retail sector,” Mr Price Group said, adding that its portfolio of 16 trading chains remained positioned to outperform in their respective markets.
The group said trading conditions in Africa remained difficult, with consumer confidence affected by rising inflation, higher interest rates and pressure on household disposable income.
South African retail sales increased by 3.5% to R8.6 billion, while sales from non-South African corporate-owned stores declined marginally by 0.3%.
Online sales continued to expand, increasing 4.7% and accounting for 2.4% of total retail sales. Cash sales remained the dominant payment method, representing 87.5% of total African retail sales and growing 3.1%.
The company also expanded its African footprint, adding 32 netstores during the quarter to reach 3,214 stores, while trading space increased by 3.8% on an annual weighted average basis.
The acquisition of NKD contributed R3.8 billion in European retail sales during the quarter, with all sales generated on a cash basis.
NKD, which operates mainly in Germany, outperformed both the overall apparel market and the value segment in its largest market, where Germany contributes around 60% of sales.
The group warned that global economic uncertainty, geopolitical tensions and inflationary pressures would continue to weigh on consumer confidence and discretionary spending.
“Trading conditions are therefore expected to remain challenging and unpredictable over the balance of the financial year,” the company said.
Despite the difficult environment, Mr Price Group said its diversified portfolio, value-focused merchandise strategy, inventory discipline and cost controls would support continued growth.
“Strong inventory management and disciplined cost control remain key priorities,” the company said, as it aims to deliver gross margin improvements and operational efficiencies throughout the financial year.
