Investors grill Mr Price management on poor quarterly performance

CEO Stuart Bird, along with chief financial officer Mark Blair, held a 30-minute telephonic information session after markets closed, in which they tried to reassure investors. Bird said while it was the expectation that customers traded down in times of economic constraint, this had not been the case in the period under review.

"Other factors came into play. Competitors took to extreme discounting. This persisted during the period and affected our sales. We did not mark down soon enough."

The management team said there was no doubt that international players had changed the competition landscape in the SA and as a result the group had repositioned its pricing and shopping experience strategies.

Bird said the macroeconomic conditions in operations in the rest of Africa had been tough.

"We traded very well in southern Africa for many years. We have also done well in Nigeria previously.

"We are prepared to take a long-term view on the continent without being aggressive. When things normalise, we will be well positioned in those markets," Bird said.

The quarterly update showed pressure on the company's trading divisions, with the apparel business most affected.

The group blamed the 3.6% drop in comparable sales at its apparel division in the 18 weeks between 3 April and 6 August on unseasonably warm weather.

Source: Business Day