South Africa’s Mr Price targets new African market after Europe entry

South African retailer Mr Price Group is tightening its focus on international growth, with plans to enter another African market even as it expands into Europe through a key acquisition. 

The Durban-based clothing and homeware chain is moving to meet rising demand for affordable goods, as high living costs push shoppers toward discount brands.

Across many emerging markets, value retail is gaining ground, creating openings for companies that can keep prices low and supply steady. 

For Mr Price, the shift comes as growth at home begins to level off, prompting the group to look beyond South Africa for new customers.

Executives say the goal is not rapid expansion, but steady, measured moves into markets where its model can work. 

The company’s entry into Europe is anchored by its planned purchase of NKD Group, a Germany-based chain with a footprint across Central and Eastern Europe.

The deal, expected to close this month, gives Mr Price an immediate presence in a region where discount retail continues to attract cost-conscious shoppers.

Focus on Europe, eyes on Africa 

Chairman Nigel Payne said the board has narrowed its search for growth to two key regions after reviewing global options.

Central and Eastern Europe is the top priority, with potential to expand further over time. 

Chief Executive Mark Blair said the company has also identified another market, likely within Africa, but will only proceed when conditions are right.

Both executives stressed the group is not chasing a global footprint, choosing instead to focus on a small number of markets it understands well.

Betting on discount demand 

The NKD deal positions Mr Price to benefit from steady demand for low-cost clothing in Europe, where discount chains are holding up better than the broader apparel sector.

The group plans to grow the business through new stores in Germany, Poland and Italy, while keeping tight control of costs. 

By 2030, Mr Price expects its European unit to generate about €1 billion ($1.2 billion) in annual sales.

NKD reported $821 million in revenue in 2024, with a 4% operating margin, offering room for improvement under Mr Price’s model. 

At home, the retailer said major acquisitions are largely done for now, leaving it free to focus on building its presence abroad and lifting returns from its new markets.