Mr Price Cellular, the mobile virtual network operator launched by the Durban-based retail group, said it is gaining market share from rivals.
The JSE-listed retailer’s annual results, published on Friday, cited GfK research that found it has increased its market share in telecommunications by 40 basis points in the 52 weeks to 29 March 2025. It did not disclose its market share figure, but said the gains came from both Mr Price Cellular, its MVNO, and Powercell, a cellphone and accessories retailer it owns. The two brands increased their retail sales by 13.2% to R1.3-billion, it said.
Brands like Mr Price are increasingly turning to mobile services, provided by network operators such as Cell C, MTN and Vodacom, as a way of increasing consumer stickiness and brand loyalty.
“The segment, which primarily sells handsets and accessories through 562 store-in-store concepts and 61 stand-alone stores, continues to grow in profitability,” Mr Price Group said on Friday.
“The launch of the group’s private label device, Salt, as well as a high accessories attachment rate of 69%, supported gains in both gross and operating margin. The segment continues to be a strategic channel to increase customer engagement as it leverages the Mr Price brand halo.”
Mr Price launched the Salt brand of smartphones in March 2024 through a campaign on social media.
In its full-year results, Mr Price reported a 10.1% increase in earnings, supported by a strong second-half performance amid improved sales growth and reduced markdowns.
Retail sales
Diluted headline earnings per share, a key profit measure, rose to R13.79, while operating profit grew 8.9% to R5.8-billion. Group revenue rose 7.9% to R40.9-billion, with retail sales up 7.8% at R39.4-billion. Comparable store sales increased by 3.4%.
Read: Cell C CEO vows to defend MVNO leadership
“The first half of the financial year was challenging for the retail sector but improved in the second half. The growth in sales momentum through the second half was supported by strong comparable store sales growth and gross profit margin gains across all trading segments,” group CEO Mark Blair said in a statement.
The group’s gross profit margin expanded by 80 basis points to 40.5% due to strong “merchandise execution” and lower markdowns, the retailer said.
Retail sales and comparable store sales in the second half accelerated to 9.9% and 5.7%, respectively, the retailer said. This came despite a weaker February for the retail sector and the shift of school holidays and Easter from March to April.
Mr Price, which also sells sportswear and appliances, declared a final dividend of 593.5c, up 12.7% from last year. – © 2025 NewsCentral Media, with additional reporting by Nqobile Dludlu, © 2025 Reuters
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