Mr Price flags online gambling as rival for consumers’ wallets
Mr Price Group warns that online gambling is diverting consumer spending despite improving household incomes.Summary
Mr Price Group, South Africa's largest listed value fashion retailer, has highlighted online gambling as a significant competitor for consumer spending. While the company reports signs of recovery in household incomes due to lower inflation and interest rate cuts, these improvements have not yet translated into a meaningful boost for discretionary retail. CEO Mark Blair noted that consumers face competing demands for their money, with online gambling increasingly diverting funds that might otherwise be spent on goods and services. This concern is shared by other sectors, such as Famous Brands, which has also observed the impact of online betting on disposable income. Despite these challenges, Mr Price achieved a 4.2% revenue increase to R42.7bn and a 4.3% rise in operating profit to over R6bn. The retailer attributes its resilience to its value-focused model and store expansion. Looking ahead, Mr Price remains cautious due to external factors like the US-Iran conflict and rising fuel costs, but it is confident in its strategy to drive growth through its value offering and customer loyalty initiatives. The company also completed the acquisition of European retailer NKD and plans to focus on its South African and German operations in the near term.
(Source：Timeslive)