Mr Price Group Limited · JSE:MRP
Mr Price — Investor Day (September 2024)
28 slides from Mr Price's investor day presentation, September 2024
Slide 1: Homeware sector
By Clint Larsson Homeware sector Part 5
Slide 2: Homeware sector Contribution
Homeware sector Contribution SECTOR CONTRIBUTIONS - RETAIL SALES DIVISIONAL CONTRIBUTIONS - RETAIL SALES 3.1% Operating margin FY2024 10.5 % 11.3% 17.1% 4.4% Medium-term target 13 -15 % % 79.8% 1.4% Apparel Homeware Telecoms 98
Slide 3: Homeware sector Landscape evolution
Homeware sector Landscape evolution PRIOR TO AND DURING COVID-19 YEARS, GROUP HELD A SIGNIFICANT SHARE OF THE MARKET ~40% Sectoral structural changes have rebased the group’s market share: • Rapid increase in new stores (>300 opened) since 2021 by competitors and new entrants • Introduction of combo
Slide 4: Homeware sector Market share recovery
Homeware sector Market share recovery SALES GROWTH* CONVERGING WITH MARKET Sales growth: ROM vs Homeware segment 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2023 2024 ROM Homeware segment • Market share losses have subsided in the
Slide 5: Homeware sector Brand positioning
Homeware sector Brand positioning GROUP HOMEWARE STORE FOOTPRINT 603 Fashion value Price value Aspirational value/niche Late fashion adoption, moderate Early fashion adoption Early trend adoption taste level Mid to high LSM Low to mid LSM High LSM Dominant textiles offer, focused offer Kitchenware s
Slide 6: Sector differentiators
Sector differentiators Three brands with a The five largest suppliers Divisions leverage a long- homeware offering covering have reliably supplied to the standing supplier base to all categories of good, group for >20 years and top deliver best value to our better, best in the pricing 10 for >15 yea
Slide 7: Mr Price Home
(mr pricehome
Slide 8: Mr Price Home: most loved, most shopped, highest brand equity
MAKING BEAUTIFUL HOMES AFFORDABLE AND ACCESSIBLE TO ALL. WE’RE PASSIONATE ABOUT MAKING LIFE BEAUTIFUL, FIRMLY ROOTED IN OUR BELIEF THAT GOOD DESIGN SHOULDN’T COST EXTRA. Most loved Most shopped homeware retailer in South homeware retailer in South Africa, for 15 consecutive Africa since 2009 years H
Slide 9: Mr Price Home Our customers
Mr Price Home Our customers WE APPEAL TO A BROAD-SPECTRUM OF TREND-CONSCIOUS AND VALUE-MINDED CUSTOMERS, IN THE MIDDLE TO UPPER INCOME SEGMENT, WHO LOVE TO EXPRESS THEMSELVES THROUGH THEIR HOMES Enterprising Ambitious movers Structured Overachievers go getter & shakers accomplishers 105
Slide 10: Mr Price Home Differentiation
Mr Price Home Differentiation Achieve differentiation through • In-house design, co-ordinated looks across taste levels • Collab partnerships with local artists and designers • Extensive width of assortment for all rooms in the house • Best priced in the market relative to fashion value competitors
Slide 11: Mr Price Home Supporting homegrown talent
Mr Price Home Supporting homegrown talent HOMEWARE RETAILER WITH THE LARGEST SUPPORT FOR LOCAL DESIGNERS THROUGH COLLABORATION THE COLLAB JOURNEY HAS RUN FOR 12 YEARS WITH MORE THAN 80 COLLABORATIONS TO DATE 107
Slide 12: Mr Price Home Value positioning
Mr Price Home Value positioning 85 % Fashion Value Matrix 2024 of consumers recognise that Mr Price Home provides either the same or better value for money than last year Mr price home LEADER NICHE @Home FA SHI ONA BILITY Woolworths Pep home Sheet Street Home Choice Game Clicks Volpes Makro Ackerman
Slide 13: Mr Price Home Omni-channel
Mr Price Home Omni-channel OFFERING A QUALITY OMNI-CHANNEL EXPERIENCE, DRIVEN BY STRONG DIGITAL MARKETING D I G I TA L G R O W T H The first mass market homeware retailer to sell online and to launch app e-Commerce people on average platform is the #1 biggest ‘store’ in 20m per month accessing our d
Slide 14: Mr Price Home Growth opportunities
Mr Price Home Growth opportunities Improve comp store growth supported by growth in under-indexed categories Grow GP through low-cost sourcing and merchandise mix Store rollout per hunting list Grow credit and lay-bys New stores to adopt ‘store of the future’ design to support brand strength 110
Slide 15: Sheet Street
sheet-street
Slide 16: Sheet Street: products sourced locally, brand equity
HELPING SOUTH AFRICANS CREATE A HOME THEY CAN BE PROUD OF ON A BUDGET THEY CAN AFFORD 67% of products sourced from Third highest brand equity Heritage brand South Africa score in the homeware sector since 1990 112 Source: Neilsen
Slide 17: Our customers
Our customers WE APPEAL TO LOW TO MIDDLE INCOME CUSTOMERS AGED 25 ONWARDS, WHO ARE FAMILY FOCUSED AND RESPONSIBLE. THEY ARE FASHION FOLLOWERS WHO SHOP FOR PRICE VALUE. Money savvy but Looking for convenience through Budget conscious, looking for wants to stand out an expansive store footprint and fu
Slide 18: Price value
Price value VALUE FOR MONEY Our average price point is below the market in categories contributing 86% of our turnover. 97 % of our customers recognise Sheet Street provides either the same or better value than last year 114 Source: Internal Value for Money Survey
Slide 19: Differentiation
Differentiation OUR DRIVERS OF DIFFERENTIATION Our customers recognise our brand Getting more for in more categories less than you would than any other expect to pay homeware retailer Widest choice Focus on small of colour space living 115
Slide 20: Omni-channel
Omni-channel D I G I TA L G R O W T H e-Commerce platform launched in 2020 of shoppers are influenced by video views across 23 % social media 1.6m platforms before spending social media % of online orders are T O TA L O W N E D ST O RE S 1.2m followers 39.6 click & collect Optimal store sizes 354 R2
Slide 21: Growth opportunities
Growth opportunities Grow under-indexed categories Exit non-profitable space Shift product mix to incorporate non-comp merchandise categories Store roll out as per hunting list Grow GP through low-cost sourcing Increase contribution of price disruptors Grow lay-bys 117
Slide 22: Yuppiechef
YUPPIECHEF
Slide 23: Yuppiechef: premium kitchen and homeware retailer
THE GO-TO RETAILER FOR THE MOST WANTED PREMIUM KITCHEN AND HOMEWARE BRANDS 12 000 premium 89% of rated High touch service options available products receive a through omni-channel through the online 4-star rating or higher offering channel 119
Slide 24: Our customers
Our customers WE APPEAL TO A BROAD-SPECTRUM OF HIGHER LSM CUSTOMERS, FROM FIRST HOMEOWNERS, WHO ARE FOODIES, ENTERTAINERS, HOMEMAKERS AND GIFT-GIVERS The passionate food enthusiast who The homemaker looking to create a constantly seeks new tools beautiful home 120
Slide 25: Differentiation
Differentiation OUR DRIVERS OF DIFFERENTIATION Curated quality >500 000 newsletter range of brands and subscribers & highly private label utilised gift registry Innovative product Edison Stone distribution division 121
Slide 26: Supporting local brands
Supporting local brands WE ACTIVELY LOOK OUT FOR & STOCK LOCAL BRANDS THAT WILL RESONATE WITH OUR TARGET CUSTOMER 122
Slide 27: Omni-channel expansion
Omni-channel expansion EXPANSION OF STORE FOOTPRINT AND APP LAUNCH, INCREASING CUSTOMER ACCESSIBILITY TO A BROADER RANGER OF PREMIUM OFFERINGS D I G I TA L G R O W T H Yuppiechef app will support the acceleration of online growth A P P L A U N C H T O S U P P O RT Marketing Conversion rate capabilit
Slide 28: Growth opportunities
Growth opportunities • Merchandise expansions - Increase private label contribution to total sales - Increase width of homeware range increasing contribution to total sales - Grow gifting assortment • Merchandise planning systems to lay foundation for growth and additional stores • Expand store foot