Mr Price lifts four-month sales

Johannesburg - Mr Price Group [JSE:MPC] boosted sales by 16% in the first four months of its fiscal year, bucking the slowing trend in the retail sector as debt-laden consumers flocked to its no-frills stores.

Mr Price said on Wednesday cash sales increased 19% in the four months from March 30, compared with the same period a year ago, and contributed more than 80% of the total sales.

South African retailers have been squeezed in recent years as consumers battle with high personal debt, rising fuel and electricity prices and high unemployment.

But Mr Price, whose market value has shot past its nearest rivals Foschini Group and Truworths [JSE:TRU] in recent months, has fared better because of its budget-friendly products.

"The retail environment is expected to remain constrained for the remainder of the year. As a fashion-value retailer, the group is comparatively well positioned," Mr Price said in a statement.

Shares in the company rose 1.4% to R208.25 in afternoon trade, outpacing a 0.4% gain the broader JSE All-share index.