Mr Price Group (MRP) Investor Day 2024 summary

Supply chain strategy and operations

• Focus on a simple, efficient, and agile supply chain with stock in distribution centers or stores, leveraging technology and data-driven processes for logistics and risk management.

• Network flexibility enables rapid scaling, rerouting, and resilience during global shipping disruptions and port congestion.

• Expansion of distribution centers, especially in Gauteng by 2026, aims to support e-commerce growth and integrate new divisions.

• Integration of new businesses like Power Fashion, Studio 88, and Yuppiechef follows a phased, process-based approach to maximize scale and efficiency through FY2030.

• The network operates a hub-and-spoke model, importing 13,000 TEU containers annually with an average store delivery transit time of 2.7 days.

Response to global shipping and port challenges

• Diversified carrier strategy, long-term contracts, and technology-driven logistics secure shipping capacity amid disruptions and Transnet inefficiencies.

• Collaboration with Transnet, optimization of extraction strategies, and use of both road and rail improve logistics flexibility and mitigate port congestion.

• Ongoing tests with alternative ports like Maputo and adjusted lead times maintain supply chain agility and resilience.

ESG integration and sustainability initiatives

• ESG is embedded in governance and operations, with a dedicated committee, six-pillar framework, and performance linked to executive remuneration since 2021.

• Achievements include a 45 million reduction in plastic bags, 47.5 million sustainable product units, 103.5 million units procured locally, and 91%+ waste recycled at key facilities in FY2024.

• Supplier visibility and compliance are prioritized, with 97% factory visibility, 94% audited, and strict onboarding and monitoring.

• Social initiatives include 6,568 youth employed through JumpStart, 96.9% employment equity, and R29 million invested in small and medium black-owned suppliers.

• Recognition from agencies like Sustainalytics and FTSE4Good reflects strong ESG performance.