You are currently viewing our desktop site, do you want to visit our Mobile web app instead?
Complete our online survey and
get 10% discount on our
Insider Gold annual subscription.
 Registered users can save articles to their personal articles list. Login here or sign up here

Mixed fortunes for SA retailers as Mr Price ups sales

Woolworths and Truworths not as lucky.

Mr Price reported a 8.3% increase in third-quarter sales on Wednesday, while clothing retailer Truworths International flagged lower half-year profit.

While some clothing retailers in Africa’s most advanced economy have reported better sales than others this week, Truworths and Woolworths Holdings warned profits will be lower as consumers spent cautiously over the festive season.

Political and policy uncertainty hobbled business and consumer confidence for most of last year, but victory for Cyril Ramaphosa, who is viewed as pro-business, in the ruling African National Congress’s leadership battle is seen as reversing this.

Mr Price said total retail sales were R6.6 billion for the three months to end-December, buoyed by the retailer’s core clothing division.

“Despite a competitive retail environment, well executed merchandise offers resulted in lower markdowns and an improved gross profit%age over the comparable period,” Mr Price, which also sells homeware and sporting goods, said.

Sales by Mr Price’s clothing division were up 11.3%.

Truworths said it expects diluted headline earnings per share for the 26 weeks to 31 December to fall by up to 5% to between 372 cents and 380 cents. Half-year sales rose by 1% compared to the directly corresponding period.

Data on Wednesday showed that South African retail sales jumped in November by their biggest margin in more than five years as sales in clothing, footwear and furniture rose, as the economy showed further signs of recovery.

Clothing retailer The Foschini Group and food retailer Shoprite Holdings on Tuesday reported higher nine months and six months to December sales, respectively.

However, Woolworths warned on Monday that its half-year profit could drop by as much as 17.5%. 

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   1

You must be signed in to comment.

SIGN IN SIGN UP

I had previously warned that Woolworths foray into Aus retail was not a smart idea. Retail in Aus under huge pressure with arrival of amazon & Myers (other main retailer) facing huge pressure from shareholders. Anyway I bought a david jones shirt in Cape Town!

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: