South Africa’s prominent value retailer Mr Price has kicked off its 2026 financial year on a promising note, posting robust sales and profit increases for the first half despite persistent headwinds in consumer spending. The group, which operates popular brands including Mr Price Apparel, Mr Price Home, Sheet Street, Miladys, Studio 88 and Yuppiechef, unveiled its interim figures for the 26 weeks to 27 September 2025, showing revenue climbing 5.4 per cent to R18.6 billion, with retail sales up 5.5 per cent to R17.8 billion.
These gains slightly outpaced the broader market’s average growth of 5.3 per cent, as reported by Moneyweb, underscoring Mr Price’s ability to capture additional market share in a sector where overall retail trade is projected to expand by just 2 per cent in real terms for the year. Comparable store sales rose by a more modest 2.1 per cent, influenced by unusual calendar effects such as shifting school holidays and prior-year base comparisons that buoyed the first quarter but tempered momentum later.
The opening quarter delivered retail sales growth of 6.3 per cent, helping secure further gains in market position, though it came at the cost of squeezed gross profit margins from necessary price reductions in June to clear seasonal stock. By the second quarter, with new spring and summer ranges entering at full price points, sales growth eased to 4.7 per cent, yet margins rebounded, contributing to an overall gross profit margin expansion of 30 basis points to 40 per cent for the half-year period.
Basic earnings per share advanced 6.5 per cent to 512.8 cents, while headline earnings per share mirrored this at 513 cents. Net profit attributable to shareholders swelled 7.7 per cent to R1.82 billion, reflecting disciplined cost controls and the retailer’s emphasis on affordable, trend-driven merchandise that resonates with budget-conscious shoppers. Over the period, Mr Price expanded its footprint by opening 91 new outlets, pushing its total store count to 3,100 locations across South Africa and neighbouring markets.
The company’s chief executive highlighted the success of its core strategy in driving sales expansion while safeguarding margins, crediting a flexible model that keeps overheads in check even as economic pressures mount. This approach has enabled consistent positive returns for investors, with the group declaring an interim dividend of 323.2 cents per share, a 6.5 per cent uplift from the prior year.
According to the Bureau for Market Research, South Africa’s retail environment remains challenging, with nominal sales growth forecast at 7 per cent but real terms lagging due to inflation and subdued household incomes. Yet, Mr Price’s performance aligns with trends favouring value-oriented players, as consumers prioritise essentials and promotions amid unemployment rates hovering above 32 per cent. The retailer’s omnichannel push, blending physical stores with online sales that now account for about 10 per cent of revenue, positions it well for the festive season ahead, where e-commerce is expected to surge further in a market increasingly dominated by mobile shopping.
As the group eyes another 200 store openings in the coming year, its results offer a glimmer of stability in an industry grappling with slow recovery. With over 2,665 outlets in South Africa alone, Mr Price continues to embody accessible fashion and home essentials, potentially setting a benchmark for peers navigating the post-pandemic landscape.