Staff Writer
Mr Price Group Limited says signs point to an improving economic growth outlook for South Africa in 2026.
The group said this is supported by low and stable inflation, the possibility of further interest rate cuts, gains from a strong commodity cycle and continued strength of the rand against the US dollar.
It cautioned, however, that uncertainty in the global political and economic environment could still affect the outlook.
The retailer said the improved macroeconomic environment should support the retail sector by allowing more disposable income to flow into discretionary spending.
In the first four weeks of January, Mr Price recorded sales growth of 4.2% off a high base of 16.0%.
The group said the base for the fourth quarter is lower, at 7.6% growth. Management said it remains focused on disciplined stock control, free cash flow generation and sustainable margin growth.
The group said the information provided does not represent an earnings forecast or estimate and has not been reviewed or reported on by its external auditors.
For the 13 weeks ended 27 December 2025, the third quarter of the financial year ending 28 March 2026, retail sales rose 3.6% to N$15.1 billion.
This followed a strong growth base of 10.6% in the same period last year.
The group said it maintained market share and gained additional share in its core South African market, including in December, as sales grew faster than the broader market’s growth of 1.6%, according to the retailers’ liaison committee.
Mr Price said it had previously reported that retail sales for the first seven weeks of the second half of the year increased by 3.3%.
Sales in October rose 1.8%, ahead of the market’s growth of 1.3%. Sales improved early in November but slowed later in the month, ending November with growth of 1.1%, slightly above the market’s 1.0%.
Sales picked up in the final six weeks of the quarter, increasing by 3.8% off a base of 12.3%.
December sales rose 5.9% against a strong base of 12.8% and exceeded the market’s growth of 3.0%.
The group said base effects during the quarter were influenced by withdrawals from retirement savings after the introduction of South Africa’s two-pot retirement system.
It said that while interest rates and inflation have eased, the discretionary retail environment for most of 2025 remained under pressure as disposable income growth was absorbed by high household debt servicing costs and diversionary spending, including online betting.
Caption
Mr Price Group Limited says indications are that South Africa’s economic growth outlook for 2026 is improving.
- Photo: Contributed
