By Nqobile Dludla JOHANNESBURG, March 17 (Reuters) - South African retailer Mr Price could enter one more international market after its expansion into Europe but has no plans for a worldwide
Mr Price Considers Additional International Market After European Entry
Mr Price's International Expansion Strategy
By Nqobile Dludla
Overview of European Expansion
JOHANNESBURG, March 17 (Reuters) - South African retailer Mr Price could enter one more international market after its expansion into Europe but has no plans for a worldwide footprint, its chairman said on Tuesday.
The clothing and homewares group, which expects to close its purchase of German-based discount retailer NKD Group this month to expand into Central and Eastern Europe, outlined its overseas strategy during an investor presentation on the deal.
Long-Term Regional Focus
Chairman Nigel Payne told investors the board had narrowed its long-term offshore mergers and acquisitions focus to two regions after reviewing opportunities worldwide.
"Priority number one being Central and Eastern Europe and that's a growth platform on a 10 to 20 year basis. So it might expand, might become Southern Europe in ten years time or whatever," Payne said.
Potential New Market
CEO Mark Blair added that "there is another territory that we've identified that would be highly attractive for us," but stressed the company would only move if conditions are right. He did not identify that territory.
Approach to Global Expansion
Both the chairman and CEO said the group was not pursuing a global shopping spree. They added that Mr Price's dealmaking in South Africa was largely complete and did not expect further transactions there in the immediate future.
European Retail Market Opportunity
The NKD deal paves the way for Mr Price to tap faster-growing value retail demand in Europe, where market data shows the discount segment is outpacing overall apparel sales.
Financial Targets and Performance
By 2030, the European business aims to generate 1 billion euros ($1.2 billion) in annual sales and deliver a double-digit operating margin, driven by more store openings, expansion in Germany, Poland and Italy and tight cost control, Blair said.
In 2024 NKD delivered net sales of 712 million euros and an earnings before interest and tax margin of 4%.
($1 = 0.8680 euros)
(Reporting by Nqobile Dludla. Editing by Mark Potter)
