Celebrating a Milestone: Mr Price Group’s Journey to 3 000 Stores

On 27 November 2024, Mr Price Group marked a defining milestone in its corporate history: the opening of its 3 000th store at The Mutual Mall. This achievement is not just a number, it captures decades of evolution, strategic pivots, and the resilience required to grow in the volatile and competitive South African retail sector.

Image : Facebook Salomé Kotzé

From Modest Beginnings to Retail Giant

The story of Mr Price begins in October 1985, when co-founders Laurie Chiappini and Stewart Cohen launched a single store with a bold vision: to offer “fashion-value” goods to consumers who were underserved by high-end retail.

Over the years, that vision translated into a disciplined business model: high volumes, tight cost control, minimal markups, and a focus on affordability.

Expansion came via organic growth, strategic acquisitions, and diversification. In 1986, the group took a major stake in the John Orrs Group, which brought the Miladys brand under its umbrella.

Later, the group branched out into homeware (Sheet Street) and other retail formats, gradually building a multi-divisional portfolio.

By 2024–25, Mr Price had evolved into a truly diversified group, operating across nine divisions: Mr Price (apparel and accessories), Mr Price Home, Mr Price Sport, Mr Price Kids, Mr Price Mobile, Miladys, Sheet Street, Power Fashion, Studio 88, and Yuppiechef (the higher-end kitchen and home goods retail arm). This diversification enabled the group to capture different customer segments and reduce dependence on any single product line.

The 3 000-Store Milestone: A Symbol, Not an Endpoint

Opening 3 000 stores is not just about physical footprint; it’s a signal of sustained ambition and operational capabilities. The milestone was officially celebrated with the unveiling of the 3 000th store at The Mutual Mall.

According to the group itself, this moment was a celebration of “decades of investment, remarkable growth, and an unyielding commitment to bringing fashion-value offerings to every South African.”

It’s a testament to how far the group has come from its single-store beginnings. But more importantly, it sets the tone for future growth and provides a milestone against which future expansion will be measured.

Image : Facebook Mr Price

Performance and Financials: Growth Under Pressure

While the expansion of store numbers captures public attention, it must be underpinned by sound financial performance and on that front, Mr Price has delivered in recent years. In the 2025 financial year, the group reported total revenue of R40.9 billion, representing about a 7.9% increase from prior periods. Operating profit reached a record R5.8 billion, with the group achieving an operating margin of 14.2%.

These figures matter because they suggest that the expansion in stores is not diluting profitability; instead, it’s scaling efficiently. The group also expanded its gross margin by 0.80 percentage points to 40.5%, signaling a degree of pricing discipline. Against a backdrop of a sluggish broader economy and global uncertainty, that performance underscores the resilience of the “fashion-value” model.

That said, the group acknowledges challenges: macroeconomic headwinds, consumer pressure, inflation, and global uncertainties remain real risks. But the strong second-half performance in 2025 suggests momentum building against the headwinds.

Strategic Drivers Behind the Growth

Several key strategic pillars have guided the group’s trajectory to 3 000 stores and will likely sustain growth going forward.

1. Value-Led Positioning

Mr Price’s core value proposition has always been “fashion-value” delivering trendy, affordable merchandise to consumers on tighter budgets. This model resonated especially well in South Africa’s economic environment, where spending power is under pressure. The ability to maintain value without completely compromising margins has been crucial.

2. Operational Efficiency & Low Overheads

To preserve margin while scaling, the group emphasizes cost control: low operating expenses per square meter, minimal advertising spend relative to large competitors, and high inventory turns. These efficiencies allow the group to remain competitive even as it extends into less mature markets.

3. Diversification & Multi-Brand Strategy

Rather than being a single-store format, Mr Price has built a portfolio of complementary brands, allowing it to penetrate multiple niches from price-driven fashion to homeware and higher-end décor via Yuppiechef. This reduces risk and captures a broader share of consumer spend.

4. Local Sourcing & Supply Chain Focus

The group has been active in boosting local procurement. Since 2015, over one billion units of locally sourced product, worth roughly R46 billion have been integrated into its supply chain. This not only strengthens local supply ecosystems but helps manage import risk and currency volatility.

5. Associate Ownership Culture

A distinct competitive edge lies in how Mr Price treats its workforce. Its share scheme allows store associates to become part-owners,14 000 associates participate in the scheme. This helps align staff incentives with business outcomes, and fosters a culture of ownership, innovation, and commitment.

6. Sustainability & Social Impact

Mr Price has not shied away from sustainability commitments. Through its Mr Price Foundation (founded in 2005), the group channels 1% of net profit after tax into youth development and education initiatives. 

The Foundation’s JumpStart program has helped prepare over 29 000 youths for employment. The group is also a signatory to global compacts, membership bodies (like the Ethical Trading Initiative), and is working to reduce plastics and push responsible sourcing.

Image : Facebook Mr Price

What Lies Ahead: Ambitions & Challenges

Reaching 3 000 stores is a milestone but not a finish line. In fact, by mid-2025, the group reported exceeding that figure, with over 3 030 stores in operation. The group has hinted at further expansion, including deeper penetration in African markets and continued growth within South Africa.

However, challenges loom:

• Macro uncertainty: Stagnant growth, inflationary pressure, and currency volatility can pressure consumer spending.

• Operational scaling: More stores means more complexity, logistics, real estate, inventory, staffing, all become larger burdens.

• Digital transition: While brick-and-mortar expansion is central, the group must keep pace in e-commerce and omnichannel retail.

• Sustainability demands: Increasing stakeholder pressure around ESG will require deeper investments in responsible sourcing, waste management, and supply chain transparency.

Yet, the foundations seem solid. The group’s model has already shown resilience in downturns, and its culture of ownership and cost discipline gives it room to pivot. As CEO Mark Blair has stated, the principles laid down at inception low cost, high volume, cash-based retailing, remain as relevant today as ever.

Conclusion

The unveiling of the 3 000th store is far more than a celebratory event, it’s a marker of how Mr Price has matured from a single retail outlet to a sprawling, multi-divisional powerhouse. The journey has been guided by a consistent value proposition, rigorous cost control, local supply chain investments, and a culture that treats employees as true stakeholders.

While economic headwinds and rising complexity lie ahead, the group is better positioned than many to navigate them. The 3 000-store milestone is both a testament to past achievements and a foundation for future ambitions.