Mr Price stands out as one of the best-performing stocks this year, outpacing its closest clothing rivals as hard-pressed consumers flock to its budget-friendly outlets while import duties on ultralow-cost Asian competitors level the playing field.
Shares in the company have skyrocketed by almost 50% in the year to date, outperforming TFG and Truworths, which have gained 25% and 30%, respectively.
The consumer shift towards budget-friendly retailers drives this growth, as people seek affordable options amid job losses, higher interest rates, and increased personal debt, analysts said.
DebtBusters’ latest report reveals that SA’s household debt to nominal disposable income is about 62%. According to a recent Pay Curve study, the surge in the cost of living has led to consumers running out of cash mid-month, forcing them to seek financial relief by accessing their wages early.
Investment analyst Chris Gilmour said Mr Price operated as a low-end retailer with some upscale elements, such as Yuppiechef. It outperformed Truworths because its overall pricing is significantly lower, which aligns well with the challenging consumer environment. Mr Price had been capturing market share for years, aided by strategic acquisitions such as Studio 88.
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