By Jan Vermeulen for MyBroadband
Mr Price released its annual financial results and reported that its telecoms segment exceeded a billion rand for the first time.
The group’s revenue increased 23% to R28.1 billion, of which Mr Price Cellular and Powercell accounted for R1.2 billion, having grown 34.4% for the 52 weeks ended 2 April 2022.
“Mr Price Cellular, launched in 2017, has reported exponential growth since inception and is now available in 374 stores with promising growth opportunities, most notably the rollout of standalone stores,” the company reported.
“Cellular handsets and accessories gained 130 basis points of market share according to Growth for Knowledge (1.3 percentage points) — 190bps including Powercell in Power Fashion,” it stated.
Mr Price said this is a significant gain considering the disruption caused by global supply chain challenges and the civil unrest in KwaZulu-Natal and Gauteng during July 2021.
According to the Retailers’ Liaison Committee, the group reported a 1.4% percentage point gain in market share.
The retailer also saw significant gains online, increasing market share by 70 basis points to 13.3%.
Online sales grew 48.2% and contributed 2.9% of retail sales.
Citing Similar Web stats for April 2021 – March 2022, Mr Price said its online growth was second-highest behind Takealot among omnichannel and pure-play retailers.
“Its nearly six million loyal social media followers grew by double-digits,” Mr Price stated.
“The Mr Price mobile app remains the highest-ranked South African fashion shopping app on the Google Play store, with customer usage up 27.3% according to Similar Web.”
By Jan Cronje for Fin24
The Supreme Court of Appeal (SCA) in Bloemfontein has upheld an appeal by the SA Revenue Service (SARS) justifying its decision to seize 19 containers of cheap clothes from China.
“There was no credible explanation for the unbelievably low prices charged by the suppliers of the goods,” the court ruled on Tuesday. “The goods and the containers in which they were imported were liable to forfeiture.”
The ruling means that SARS was within its rights to first seize and then detain the containers. It also overturns a previous high court ruling ordering that the containers be released.
‘Unrealistic and unattainable’
The tax agency confiscated the goods in 2020 on the basis that they had been clearly under-invoiced.
It argued that Gauteng-based clearing agent Dragon Freight and six other importers had been unable to explain how they were able to source the goods at such low prices.
But the revenue collections agency’s seizure order was overturned in December 2020, when Judge Selby Baqwa of the North Gauteng High Court in Pretoria ordered that the containers be released.
Baqwa argued that SARS should have accepted the initial answers given by the importers. The subsequent research it conducted and the follow-up questions it posed were “procedurally unfair” or “irrelevant”.
But the SCA found Baqwa’s decision was flawed.
“The high court erred in disregarding not only the evidence showing that the agreements were false, but also the reasons for the impugned decision, despite quoting those reasons verbatim in its judgment.”
In its case, SARS had relied on evidence provided by textile expert Dr Jaywant Irkhede, who noted that the importers claimed they were able to source clothes for just $0.21 or around R3 per item.
While the importers disputed Irkhede’s calculations, the court found that his evidence “makes it clear that the prices declared by the importers were unrealistic and unattainable”.
Johann Baard of the SA Apparel Association welcomed the SCA verdict.
“We sincerely hope that this sends a strong message to those who do not play by the rules,” he said. “Illegal imports and illicit trade pose a significant threat to the sustainability of compliant clothing manufacturers who employ many thousands of people domestically.”
Retailer Pick n Pay Clothing has launched a partnership with online fashion retailer, Zando.
According to Pick n Pay, from Tuesday, Pick n Pay fashion ranges will be available for purchase on Zando, extending accessibility beyond its physical stores across the country and online at www.pnpclothing.co.za.
Pick n Pay Clothing general manager Hazel Pillay said: “Pick n Pay Clothing customers will have more access to our clothing ranges through Zando, and we look forward to welcoming new customers whom we know will enjoy the quality and affordable pieces of highly desirable fashion that we offer.”
Pick n Pay said through Zando, which was well-established in online fashion and clothing retail, it would be able to diversify its customer base by reaching more customers.
Pick n Pay Clothing will make its debut on www.zando.co.za and on the Zando android and iOS apps.
“We are looking forward to offering our customers another channel to access our popular clothing ranges, and to welcoming new customers into the fold,” said Pillay.
Pillay said the collaboration with Zando was the logical next phase for Pick n Clothing which has fast built a reputation for offering affordable and accessible brands that are on-trend and made with quality materials.
“We are proud to offer savvy and fashion-forward customers everyday essential wear that makes it easy to update their wardrobes whenever they want and helps them keep up with the latest trends without breaking the bank,” he said.
Zando.co.za was established in 2012 and has since become one of South Africa’s biggest online fashion platforms. It forms part of the Jumia Group, Africa’s leading e-commerce platform.
Zando CEO Grant Brown said: “By entering into a partnership with Pick n Pay Clothing, we are extending value to our customers by increasing the assortment on our platform. Having Pick n Pay Clothing on board provides our shoppers with access to the latest trends at affordable prices, which we are excited about.”
Pick n Pay Clothing has become acknowledged as a progressive brand, recently launching its second instalment of limited-edition designer wear collections in collaboration with young emerging SA designers, mentored by veteran SA fashion designer, Gavin Rajah.