The Mr Price Group has achieved sustained growth since its listing on the JSE. According to Mr Price (2015c) in the last 29 years the group has achieved annual compound growth of over 23% and 25% in headline earnings per share and dividend per share respectively. In the last reporting period the return on equity was 51%. As shown in figure 1 its revenue has increased from R294 million in 1992 to over R18 billion in the 2015 reporting period. The group has R2.8 billion cash on its balance sheet, it plans to use these cash reserves to finance its expansion strategy (Mr Price, 2015b). Mr Price (2015b) states that growth is largely driven by Mr Price, which contributes approximately 60% of the group’s revenue, the Mr Price brands (Mr Price, Mr Price home and Mr Price sport) together constitute 83% of group revenue. Sales in South Africa grew by 12% in the previous reporting period, online sales grew by 110%. Figure 1: Mr Price revenue history 4. GROUP STRATEGY
4.1. Vision and Purpose
The Mr Price Group vision is “to become a top performing international retailer” (Mr Price, 2015b). Its purpose is “to add value to our customers lives and worth to our partners lives, while caring for the communities and environments in which we operate”(Mr Price, 2015b). Mr Price still operates according to the vision set by its founders which is to provide fashionable clothing at a low price (Mr Price, n.d.).
4.2. Business Model
Since its inception Mr Price business strategy has been