We believe the impetus for MRP’s new growth strategy was the weak volume growth across most of its chains over the past eight years. We find it interesting that MRP has branched out to opposite sides of the income target market spectrum, with Power Fashion and Yuppiechef. Our analysis shows Power Fashion’s has a lower trading density and lower GPM than MRP, but its locations in lower cost sites make its business model profitable. We believe MRP could assist Yuppiechef in expanding its store footprint aggressively, and that there could be scope for another 100 Yuppiechef stores, contributing c. R1bn additional turnover (4.7% of MRP’s FY21 turnover).
