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Mr Price posts 3rd quarter uptick in retail sales as it keeps prices unchanged

Mr Price saw retail sales growth of 3.9% in the third quarter of 2019 despite a constrained business environment and the impact of load shedding. 

The retailer on Friday posted a trading update for the period between September 29 and December 28, 2019. 

The group said it kept prices unchanged at 2018 levels as part of its "strategic intent to entrench market positioning and to be viewed by consumers as the people’s value champion."

The strongest growth was seen in the retailers women's fashion department, Miladys, which sales up 7.5%. Mr Price Apparel, the group's largest division, grew by 3.2%. Mr Price Home grew by just 1.2%. "The Home businesses have felt the effect of lower growth in household expenditure, particularly on discretionary items," said the group. 

Overall, SA retail sales grew 3.9% to R6.4bn. Store sales were up 3.7% and online sales up 17.4%.

Cash was again king, constituting 85% of the group's sales. The group also flagged double digit growth in mobile and cellular, but did not provide specifics. 

The group noted that business activity in key weeks in December was "materially affected by stage six rolling power blackouts and prolonged periods of torrential rain in the inland areas, partially diluting the anticipated impact of the extra week of school holidays."

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