Mr Price to open stores in Australia this year

Johannesburg - Mr Price [JSE:MPC] plans to open stores in Australia by the end of this year, the firm said on Tuesday.

"Our plans there will commence with Mr Price opening test stores this year in time for peak festive season trade," Mr Price CEO Stuart Bird said in a statement.

Mr Price is “actively seeking new markets”, and will open its first test store in Australia in the second half of the new financial year, it said.

South African competitor Woolworths [JSE:WHL] expanded into the southern hemisphere country last year with the $2bn purchase of David Jones.

Cash transactions boost profits

Mr Price Group said its focus on cash transactions helped lift profit 23% as the company avoided potentially costly non-payments of debt.

Net income rose to R2.29bn in the year through March 28 and cash sales advanced by 15%, beating credit sales growth of 7.5%, it said in a statement on Tuesday. Mr Price raised the full-year dividend by 20% to R5.80 a share.

South African retailers have been struggling as consumer spending slides amid unemployment of more than 25% and economic growth that’s been held back by electricity shortages.

“We are very satisfied with the results achieved in an environment in which the economy and consumers are struggling,” Bird said.

Cash sales made up almost 82% of Mr Price’s total revenue, the company said.

The stock rose 1.72% to R233.95 in late afternoon trade on the JSE. The company has slid 0.4% this year, the worst performer and only decliner on the 10-member FTSE/JSE Africa General Retailers Index.

- Reuters and Bloomberg