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Mr Price’s share price closed 15% higher on Friday at R172 after the retailer reported stronger earnings growth and improved margins for the year to March 2026. The company has a market cap of R45bn.This was very different from rival TFG, which reported weaker profits, lower margins and new impairment charges in its UK and Australian businesses. Tough trading conditions continued to weigh on its international operations. Its share price rose almost 4% to close at R57.87. Both retailers faced a difficult environment, but their results moved in opposite directions. Mr Price managed to grow revenue, margins and earnings, while TFG saw margins shrink, profits fall and losses in its offshore units. Mr Price increased total revenue by 4.2% to R42.7bn, with retail sales up 4.3%, slightly ahead of the sector’s 4% growth. Profit for the year rose slightly to R3.8bn from R3.7bn, and operating profit increased 4.3% to R6bn. In contrast, TFG’s results were hit by a weaker second half. Conditions worsened across South Africa, the UK and Australia, which reduced profitability. Gross margin fell by 100 basis points to 41.6%, while earnings before interest and tax dropped 22.1% to R4.9bn. Though revenue increased 7.2% to R67.1bn, profit for the year fell sharply to R1.3bn from R3.1bn. TFG CEO Anthony Thunström said the 2026 financial year “was a challenging year as weaker consumer demand and margin pressure impacted profitability across the group. While these conditions were largely outside our control, our response was not. We acted decisively to reduce costs, manage inventory, preserve cash and strengthen the resilience of the business.” He said the group invested significantly over a number of years to build scaled retail, digital and logistics platforms that position it well for the future. “As online penetration continues to grow and our omni-channel capabilities scale, we believe we are increasingly able to drive growth through a more capital-light model while remaining focused on improving profitability and returns.” TFG plans to open between 80-90 stores. Mr Price Group CEO Mark Blair struck a more positive tone, saying the “agility of our operating model and the strength of our value retailing DNA have enabled operating leverage in a challenging retail environment. We are confident in our ability to perform across economic cycles while continuing to deliver value to our customers.” He added that value retail is expected to “demonstrate resilience as consumers navigate a potentially prolonged period of financial pressure.” Looking ahead, TFG expects trading conditions to remain tough across its key markets. Thunström said South Africa’s slow economic growth and pressure on household incomes will continue to limit spending. The UK is also likely to stay challenging, with high living costs and weak consumer confidence weighing on demand. In Australia, inflation and recent interest rate hikes are expected to further dampen consumer spending, which could delay any recovery. He said the group’s profitability will depend on tight cost control and careful margin management. Mr Price, in contrast, plans to build on its steady performance. The group said its focus for 2027 will be to continue the consistent earnings growth achieved over the past three years, supported by its value-focused business model. It expects this approach to help protect margins even if sales growth remains under pressure, with disciplined execution in a tough local market remaining a priority. The retailer plans to invest about R1.1bn in South Africa, including opening around 180 new stores, upgrading existing outlets, and strengthening its supply chain and technology. It will also place greater focus on balance sheet management following the introduction of structural debt. In Europe, its NKD business plans to spend about €24m, including the rollout of roughly 150 new stores. Blair said: “There is an underlying optimism about South Africa’s long-term prospects, and we remain positive about our business’s ability to continue performing strongly. However, the conflict in Iran has brought uncertainty to the short term and we are focused on ensuring that we manage the impacts and continue to deliver value to our loyal customers.”
