We have been receiving more updates from the retailers, both yesterday and now this morning. Let's start with Mr Price.
"During the third quarter (29 September 2013 to 28 December 2013) of the financial year ending 29 March 2014, Mr Price Group recorded total sales growth of 14.8% and comparable sales growth of 10.5% over the corresponding period in the prior year (30 September 2012 to 29 December 2012). Sales growth rates were fairly consistent in each of the three trading months. Retail selling price inflation was 10.8%."
Good sales numbers from a very good company off an ever increasing base. But look at those price increases? That is scary from an inflation perspective. I wouldn't put it all to inflation however. Mr Price have slowly been shifting from really cheap products to more higher end goods because their brand has become so strong. They have earned the right to charge more for their well selected clothes and people are now willing to pay that premium.
Within their divisions apparel grew 17.2% while the home division lagged, only growing 8.3%. That is a trend we have been seeing for a while now. Mr Price has comfortably out preformed the retail sector and had another great year last year while the sector struggled. I guess expectations were for higher sales, the stock dropped 2.8% yesterday.