MR PRICE GROUP
Share Code: MPC
Isin Code: ZAE000026951
Total number of stores to reach 750 by financial year-end
ÝCape Town, 20 September 2001¨ The Mr Price Group today announced that it
would be opening nearly 60 new stores before the end of the current
financial year and that the group was on target to meet its forecast of an
increase in profits.
"We will open eleven new stores next week, of which four will be in the new
Gateway Regional Shopping Centre at Umhlanga Rocks," said CEO Alastair
McArthur. "A further six new stores will follow in October, and of these 17
new stores, three will be in Santiago, Chile. We expect our total number of
stores to reach 750 by the end of the financial year in March 2002. We are
continuing to grow market share and see no reason to cut back or rationalise
store space. On the contrary, we are negotiating for new space to expand
many of our existing Mr Price stores in large shopping centres".
"The company's continued expansion is very positive for job creation," said
Joint Chairman, Stewart Cohen. "It should be the priority of every South
African company to create jobs - nothing is more important in this country
at this time". Cohen added that the Mr Price Group has created over 4000
direct jobs and invested over R500 million in the South African economy over
the last decade. Furthermore, the group has helped to add many thousand more
jobs in the factories of its South African manufacturers.
Commenting on the recently commenced international expansion of Mr Price,
Joint Chairman, Laurie Chiappini, said that if the current test phase in
South America proved successful (three stores are already open and a further
three new ones will open shortly), this could lead to a rapid roll-out of
stores internationally over the next five years.
"Our forecasts indicate that this could result in exports of apparel and
home textiles from South Africa exceeding R500 million within five years,
creating significant job opportunities in the clothing and textile
manufacturing sectors."
Commenting on current trading, McArthur said that there had been a marked
improvement in the first six months of the current financial year. "Mr Price
Weekend Material is performing well, which is very pleasing and Mr Price
Home is continuing its aggressive performance. Milady's has also had a very
good first half. While we still have just over a week of trading left before
the end of the first half of the financial year on 29 September, I would
expect our earnings to be well up in these six months."
McArthur added that trading conditions were getting a little easier and that
consumer confidence appeared to be returning. He believes that the impact
of gambling and the lottery has stabilised and that consumers have woken up
to the real cost of owning cell phones.
"Given the good first half, we are nevertheless confident that our forecast
of a profit increase for the year will be achieved. Our retail concepts are
good and do not need re-positioning. In particular our value concepts in the
Mr Price stable are perfectly positioned to take advantage of the global
swing to value retailing and our strong branding represents added value to
customers".
ENDS
For further information, please contact Alice Jenner at Corporate Image at
(021) 426 1233
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