Mr Price expands in Europe with NKD acquisition

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At a Glance

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• Mr Price moves into Europe with planned acquisition of Germany-based NKD Group.
• Deal strengthens value-retail expansion as NKD targets up to 4,000 stores.
• Partnership links African and European budget markets amid rising demand for affordable goods.

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Mr Price Group, one of South Africa’s largest retail companies, is taking a major step into Europe with a planned acquisition of Germany-based NKD Group GmbH.

The deal, agreed with private-equity owner TDR Capital, signals a push by the Durban-headquartered group to build a wider global presence as demand for affordable apparel and household goods continues to rise across European markets.

The acquisition, still subject to regulatory approval, marks one of Mr Price’s most significant cross-border steps. TDR Capital acquired NKD in 2019 and has since supported its transformation into a data-driven, multi-country fashion and homeware chain. 

Expansion strategy anchored in value retail

Mr Price views the acquisition as a way to speed up its omni-channel growth, a priority as shoppers move fluidly between physical stores and online platforms. NKD, which operates in Germany, Austria, Italy, Slovenia and other markets, is preparing to widen its store network in Central and Eastern Europe.

The company plans to grow from about 2,200 stores to 3,000 in the medium term, with a long-range goal of reaching 4,000 locations. 

The expansion comes at a time when low-price retail formats continue to outperform much of the European apparel sector, buoyed by shoppers seeking simple, dependable products at accessible prices.

Mr Price CEO Mark Blair said NKD’s strong footprint, disciplined cost structure and clear value proposition make it a natural fit for the group. “The business offers a platform we can build on, with scale, reach, and a clear understanding of its customers,” he said.

Retail merger aims to build a stronger cross-border network

Blair added that NKD’s digital capabilities and broad store network put it in a position to accelerate growth under new ownership. “We look forward to working with the NKD team as we enter a new phase together,” he said.

NKD CEO Alexander Schmökel said joining Mr Price gives the chain a long-term retail partner committed to expanding the brand’s presence in Europe. “With shared priorities and a clear plan, we can strengthen our competitive position and continue improving our offer to customers,” he said.

TDR Capital partners Jonathan Rosen and Linda Zhang highlighted NKD’s operational progress over the past several years, including investments in analytics and supply-chain systems that have improved performance across all its markets. They said Mr Price provides a strong platform for the next chapter of NKD’s growth.

Linking African and European value markets

NKD sells family apparel, home textiles, and seasonal goods, with an emphasis on practical products offered at modest prices. Its assortment strategy relies heavily on local insights and inventory planning informed by data.

Mr Price, listed on the Johannesburg Stock Exchange, operates a range of brands including MRP Apparel, MRP Home and Studio 88. It has become one of Africa’s most successful value retailers, known for keeping prices low while maintaining solid margins.

With the NKD deal, Mr Price broadens its reach into Europe at a time when global value retail is consolidating. The partnership connects one of Africa’s leading budget chains with a well-established European operator, reflecting a retail landscape where scale, simplicity and affordability matter more than ever.