Clothing retailer becomes a R1.2 billion telecommunications giant in 5 years
Mr Price released his annual financial results on Thursday and said his telecommunications segment exceeded 1 billion rand for the first time.
Group revenue rose 23% to R28.1 billion, of which Mr Price Cellular and Powercell accounted for R1.2 billion, after rising 34.4% for the 52 weeks ending April 2 2022.
“Mr Price Cellular, launched in 2017, has seen exponential growth since its inception and is now available in 374 stores with promising growth opportunities including the rollout of stand-alone stores,” the company said.
“Cellular handsets and accessories gained 130 basis points in market share according to Growth for Knowledge (1.3 percentage points) – 190 basis points including Powercell in Power Fashion,” he said.
Mr Price said this was a significant win given 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 recorded a market share gain of 1.4%.
The retailer also saw significant gains online, increasing its market share by 70 basis points to 13.3%.
Online sales increased by 48.2% and contributed 2.9% of retail sales.
Citing similar web statistics from April 2021 to March 2022, Price said its online growth was the second highest behind Takealot among omnichannel and pure-play retailers.
“His nearly six million loyal social media followers have grown by double digits,” Mr. Price said.
“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.”