Mr Price’s share price closed 15% higher on Friday after the retailer reported stronger earnings growth and improved margins for the year to March 2026.
This was very different from rival TFG, which reported weaker profits, lower margins and new impairment charges in its UK and Australian businesses.
Both retailers faced a difficult environment, but their results moved in opposite directions. Mr Price managed to grow revenue, margins and earnings, while TFG saw margins shrink, profits fall and losses in its offshore units.
Mr Price group CEO Mark Blair credited the “agility of our operating model and the strength of our value retailing DNA”, adding it “enabled operating leverage in a challenging retail environment”.
“We are confident in our ability to perform across economic cycles while continuing to deliver value to our customers.”
He expects value retail to “demonstrate resilience as consumers navigate a potentially prolonged period of financial pressure” and plans to build on the group’s steady performance.
The focus for 2027 continues on the consistent earnings growth achieved over the past three years, supported by its value-focused business model.
It expects this approach to help protect margins even amid pressure on sales growth, with disciplined execution in a tough local market remaining a priority.
The retailer plans to invest about R1.1bn in SA, including opening around 180 new stores, upgrading existing outlets, and strengthening its supply chain and technology.
><Q1 retail sales jump
Retail sales started 2026 on a strong note, helped by lower inflation that boosted consumer spending. But this relief may not last, as prices are expected to rise again later in the year.
According to NielsenIQ’s “State of the Retail Nation” report for Q1 of 2026, consumers spent more than R173.6bn on fast-moving consumer goods (FMCG).
Sales value grew by 6.5% from Q1 last year, and volumes by 9.1%. This shows that people were buying more goods, not just paying higher prices.
Relatively stable food prices and lower fuel costs gave households some breathing room after years of financial pressure. However, NielsenIQ MD Zak Haeri says inflation is already starting to rise again.
Food, the biggest fast-moving category, saw steady growth. Volumes rose by 4.5% and sales value increased by 7.2%. Snacking was one of the fastest-growing segments, with volumes up 16.2% and value rising 11.9%.
Most other categories, including beverages, tobacco and personal care, also recorded steady growth. Only baby food and care declined, with sales value falling by 2.1%, suggesting households are still under strain.
Traditional trade channels — such as spaza shops and independent retailers — grew faster than modern retailers in some categories. Their strength comes from being close to where people live and allowing shoppers to make smaller, more frequent purchases.
Modern retail, which includes chain stores, franchises and online retailers, still made up the largest share of sales. Sales value grew by 4% but volume growth slowed, showing increased competition. Forecourt retailers rose 1.3% in volumes and 4.2% in sales value. — Business Day