Mr Price (MRP) – MRP’s Value offering should do better

We contrast MRP Apparel‘s growth with that of TFG Africa Clothing and note the significant differences in inflation and volume growth between these retailers. We are concerned that MRP may have reached a ceiling in terms of customers seeking extreme value-pricing, and that further growth would have to come from a more discerning customer who is willing to pay slightly more for a better-quality product. Alternatively, MRP’s foray into fashion may not be generating significantly higher volumes.