Mr Price Group Limited · JSE:MRP
Mr Price — Investor Day (September 2024)
46 slides from Mr Price's investor day presentation, September 2024
Slide 1: Apparel sector
By Donovan Baney Apparel sector Part 4
Slide 2: Apparel sector Contribution
Apparel sector Contribution SECTOR CONTRIBUTIONS - RETAIL SALES DIVISIONAL CONTRIBUTIONS - RETAIL SALES 3.1% 42.2% Operating margin FY2024 17.1% 5.4% 15.3 % 4.6% Medium-term target 16 -18 % % 79.8% 6.7% 20.9% Apparel Homeware Telecoms 53
Slide 3: Apparel sector Market share
Apparel sector Market share SALES GROWTH* AHEAD OF MARKET SINCE JULY 2023 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2023 2024 ROM Apparel segment 54 *RLC
Slide 4: Sustaining our differentiation
Sustaining our differentiation CONSISTENT EXECUTION OF DIFFERENTIATED FASHION-VALUE, ACHIEVED BY: Supply chain Merchandise Trend capabilities Trade agility Customer insights 55
Slide 5: Supply chain agility
• Flexible and efficient responses to our customers’ needs Supply chain agility • Greater accessibility to fabrics, fashions and innovations • Risk mitigation AGILITY IN OUR SUPPLY CHAIN ALLOWS US TO PROVIDE OUR CUSTOMERS WITH THE MOST RELEVANT, SOUGHT-AFTER FASHION Fabric: April 2021 - April 2024 A
Slide 6: Merchandise process
Merchandise process Current Trend trade Web and app traffic, social Digital data media insights Postmortem Seasonal • Core vs fashion • Seasonality • Week • Point in lifecycle merchandise plan • Width & depth • Colour • Size • Patterns RLC data and other research • Fabric/silhouette • Several other
Slide 7: Market size Category opportunities
58 Market size Category 01 Category 02 Category 03 Category 04 Category 05 *Sorted by market size Category 06 Category 07 Category 08 Category 09 Category 10 Category 11 Category 12 Category 13 Category 14 Category 15 Category 16 Category 17 Category 18 Category 18 Category 20 Category 21 Category 2
Slide 8: Merchandise process: Buyer Planner
Merchandise process PROCESSES GUIDED BY THE BLEND OF ART AND SCIENCE Buyer Planner 59
Slide 9: Trend capability
Trend capability 01 02 03 04 05 Research Research digital Research social Seasonal Merchandise phase platforms media trend calls & marketing 60
Slide 10: Trend capability example Corset styling
Trend capability example Corset styling 61
Slide 11: Current trade agility
Current trade agility WEEKLY CURRENT TRADE ANALYSIS PROVIDES INSIGHTS ON MERCHANDISE CLEARANCES CREATING OPPORTUNITY TO ADAPT ORDERS EITHER THROUGH CHANGING TREND OR CHASING VOLUMES On average more than 60% of orders placed are changed at least once as a result of current trade insights Agility to c
Slide 12: Customer diversification
Customer diversification MR PRICE IS THE MOST SHOPPED APPAREL RETAILER WITH A DIVERSE CUSTOMER RANGE • 59% of our shoppers have a household income below R10K • We have the highest number of shoppers across the household income groups between R5 000 - >R20 000 R1 - R4 999 R5 000 - R9 999 992 618 885
Slide 13: Customer engagement Driving insight
Customer engagement Driving insight ENGAGEMENT THROUGH OUR DIGITAL AND SOCIAL MEDIA PLATFORMS PROVIDE KEY CUSTOMER INSIGHTS 6.9m Facebook Followers 155m Website and app visits 874k X Followers 2.8m 553k TikTok Followers Instagram Followers 64 Stats representative of the group’s digital reach
Slide 14: Apparel sector Contribution
Apparel sector Contribution SECTOR CONTRIBUTIONS - RETAIL SALES DIVISIONAL CONTRIBUTIONS - RETAIL SALES 3.1% 42.2% Operating margin FY2024 17.1% 5.4% 15.3 % 4.6% Medium-term target 16 -18 % % 79.8% 6.7% 20.9% Apparel Homeware Telecoms 53
Slide 15: Mr Price
(mr price
Slide 16: Mr Price Apparel
Mr Price Apparel SUCCESS BUILT ON DELIVERING PREDOMINANTLY PRIVATE LABEL DIFFERENTIATED FASHION, GIVING CUSTOMERS ACCESS TO THE LATEST GLOBAL TRENDS, HELPING THEM TO LOOK AND FEEL GOOD AT UNBELIEVABLE VALUE #1 Most shopped ranked most valuable apparel apparel retailer in retailer in South Africa Sou
Slide 17: Our impact
Our impact Sold a pair of Sold a T-shirt every denims every second our stores 2 seconds our were open stores were open Sold enough ladies Sold enough dresses sandals to outfit to clothe 3 out of everyone at the 60 every 10 SA women Taylor Swift Era’s over the age of 16 Tour concerts 67
Slide 18: Omni-channel
Omni-channel OFFERING A TRULY OMNI-CHANNEL EXPERIENCE, DRIVEN BY STRONG DIGITAL MARKETING D I G I TA L F O O T P R I N T The online channel is a key window and platform that continues to drive customers to our stores of customers social media browse online >4m followers, highest 1/2 before purchasin
Slide 19: Differentiation
Differentiation PREDOMINANTLY PRIVATE LABEL DIFFERENTIATED THROUGH STRONG FASHION-VALUE ASSORTMENTS Merchandise range supplemented with collaborations, exclusive ranges and trending ambassadors Collaborations Exclusive ranges Trending ambassadors 69
Slide 20: Value positioning
Value positioning Fashion Value Matrix #1 FASHION-VALUE Mr Price leads the fashion value matrix ahead of Shein and all other competitors in ladies and mens wear FA SHI ONA BILITY 96 of consumers recognise that Mr Foschini % Price provides either the same or better value for money than the prior year
Slide 21: Performance & outlook
Performance & outlook How is it performing COMBO STORES 7 STANDALONE 44 • Opened 10 stores in H1 taking our footprint to 44 Standalones and 7 Combo stores, with 11 new stores planned in H2 • Standalone store sales contributing 20% to total Mr Price Kids Sales • Kids offering remains available across
Slide 22: Growth opportunities
Growth opportunities Stronger comp performance supported by: • Organic growth of under-indexed departments • Focused merchandise execution Store growth opportunities through smaller formats and Mr Price Kids Store revamps to maintain strong brand presence Improved e-Commerce offering to strengthen o
Slide 23: Mr Price Sport
(mr price sport
Slide 24: Mr Price Sport: brand equity and value for money
WE ARE PASSIONATE ABOUT MAKING AN ACTIVE, SPORT AND OUTDOOR LIFESTYLE POSSIBLE FOR ALL SOUTH AFRICANS Highest rated sportswear Highest brand equity Supporting sportsmanship in retailer for value for money in sportswear SA through key partnerships Brand equity 82 % 2.2 2.0 1.7 1.4 1.4 1.3 1.3 1.1 1.0
Slide 25: Brands
Brands APPEAL TO ASPIRATIONAL AND TREND CONSCIOUS CUSTOMERS ACROSS A WIDE RANGE OF AGE PROFILES & AFFORDABILITY MERCHANDISE RANGE IS DOMINANT IN PRIVATE LABEL BRANDS, COMPLEMENTED BY SPECIFIC KEY INTERNATIONAL BRANDS AND LICENSED PRODUCT P R I VATE L A BEL E XC L U S IVE BRANDS NO N -EXC L U S IVE B
Slide 26: Footprint expansion
Footprint expansion D I G I TA L G R O W T H Digitally engaged customer interacts seamlessly between online and stores social media growth in website 570k followers 20 % traffic of online orders of customers shop T O TA L O W N E D ST O RE S 47% are click & collect 35% both in-store and Ample store
Slide 27: Competitive pricing makes sporting apparel & equipment accessible
Competitive pricing makes sporting apparel & equipment accessible to and a good fit value-focused for the customer 77
Slide 28: Impact in the sporting world
Impact in the sporting world OUR PARTNERSHIPS BUILD BRAND AWARENESS TO OUR MASS MARKET TARGET CUSTOMER 78
Slide 29: Growth opportunities
Growth opportunities CONTINUED EXECUTION OF FASHION-VALUE MODEL SUPPORTING COMP SALES AND MARKET SHARE GAINS Assortment expansion: • Targeted split – Private label 80% | Branded 20% • Increase assortment of performance brands in specialty sporting equipment and performance footwear Diversify custome
Slide 30: Miladys
MILADYS
Slide 31: Fit, Fabric, Feminine & Freshness
WE ARE A 100% FEMALE FOCUSED RETAILER, TARGETING THE 40+ CUSTOMER, OFFERING DIFFERENTIATED ASSORTMENTS, THAT ARE VERSATILE AND ON TREND Unparalleled brand and customer target market correlation, driven by four principles: Fit, Fabric, Feminine & Freshness 2nd highest Net Promoter Score of brand equi
Slide 32: Omni-channel
Omni-channel D I G I TA L F O O T P R I N T Launched online in 2020 T O TA L OW N ED ST O RE S Space growth 266 R25 787 m Trading density opportunities increase as 2 customer base widens 82
Slide 33: Differentiation
Differentiation WE ARE THE ONLY LOCAL WOMEN’S RETAILER TO OFFER SIZE 32 – 50 ACROSS ALL OUR FASHION, ENSURING EVERY CUSTOMER FINDS HER FIT – NO EXCEPTIONS Merchandise range is predominantly private label and strategically supplemented with offerings from exclusive brands Private label Exclusive bran
Slide 34: Growth opportunities
Growth opportunities Diversify customer demographic and increase contribution to sales Align with broader group supply chain to unlock value Short-term recovery in the consumer and credit market Grow key private label brands - Wonderfit 84
Slide 35: Power Fashion
Slide 36: Ackermans
A KASI BRAND THAT PROVIDES AFFORDABLE FASHION FOR THE WHOLE FAMILY. WE PRIDE OURSELVES IN HELPING THE LOW-INCOME SHOPPER TO LOOK AND FEEL GOOD FOR LESS 29 months of consecutive Store footprint doubled since Record growth in brand equity market share gains acquisition from 7th to 4th place in FY2024
Slide 37: Our Kasi Customer
Our Kasi Customer CORE SHOPPER The value-seeker who loves fashion & is in tune with the latest styles • LSM 2 – 5 • The value-seeker who loves fashion & is in tune with the latest styles • 18 – 45 years old • Majority of our shoppers HHI is <R5 000 • 80% female • 70% of our shoppers are social grant
Slide 38: Our value & impact
Our value & impact Our unique value bins are the cornerstone of Value for money our shopper experience and offer essential product to the customer at exceptional value 99 % of our customers believe Power Fashion provides either the same or better value than last year 1 in units sold in the women’s e
Slide 39: Footprint expansion
Footprint expansion AS OUR STORE LOCATION FOOTPRINT GROWS TO > 500 STORES, WE DRIVE AWARENESS THROUGH LOCAL COMMUNITIES & DIGITAL MARKETING D I G I TA L G R O W T H With a focused approach to grow our digital footprint, we reach unique audiences thus driving more feet to stores. engaged customers gr
Slide 40: Differentiation
Differentiation PROVIDING LOW-PRICED, FASHION- RELEVANT MERCHANDISE Sourcing from over 150 suppliers, across 9 countries 1.5 million units secured through US retailer partnership 27.7 million units sourced locally 90
Slide 41: Growth opportunities
Growth opportunities GROWTH OPPORTUNITIES At least double, potentially triple the current store base Growth in private label brands Capitalise on additional opportunistic buying gains as greater scale is achieved Increase operating leverage through scaled growth off a fixed cost base Integration tha
Slide 42: Studio 88
Slide 43: Studio 88
Studio 88 SOUTH AFRICA’S LARGEST BRANDED FASHION CLOTHING AND FOOTWEAR RETAILER. WE MAKE IT OUR BUSINESS TO BRING OUR CUSTOMERS THE LATEST TRENDS IN SNEAKERS, FOOTWEAR AND CLOTHING AT COMPETITIVE PRICES Speciality 399 198 160 118 40 T O TA L O W N ED ST O RE S 915 R42 841 m Trading density 2 93
Slide 44: Brands
Brands Brand segments 77% Non-exclusive 16 % Exclusive 7 % Private label NO N - E XC L U S IV E BRANDS* E XC LU S IVE BRA NDS* O W N LA BEL S 94 *Trademark under licence
Slide 45: Store location strategy
Store location strategy WE FOCUS ON THE MID TO LOW LSM CONSUMER, DISTRIBUTING HIGH QUALITY, BRANDED FASHION AND SPORTSWEAR NATIONWIDE Store locations strategically concentrated away from urban nodes Brands continue to favour the wholesale model vs DTC, with our store footprint providing increased ef
Slide 46: Growth opportunities
Growth opportunities WE FOCUS ON THE MID TO LOW LSM CONSUMER, DISTRIBUTING HIGH QUALITY, BRANDED FASHION AND SPORTSWEAR NATIONWIDE Growth opportunities • Improved margins through more effective stock management • Growth in private label brands • Online expansion - Skipper Bar and John Craig to launc