Mr Price earnings impacted by lockdown

File: Mr Price has reported a 10.4 percent drop in annual earnings due to COVID-19 impairment provisions.

File: Mr Price has reported a 10.4 percent drop in annual earnings due to COVID-19 impairment provisions.

JOHANNESBURG - Mr Price, one of South Africa's biggest retailers, has shown just how badly it's been affected by the lockdown.

The company has reported a 10.4 percent drop in annual earnings due to COVID-19 impairment provisions.

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In April, all the group’s South African stores were closed and retail sales dropped by over 80 percent.

But the results did show a spike in online sales of 90 percent in the period.

In the months after April, Mr Price's books showed consumers still prefer using cash.

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In May and June combined, cash sales increased by 16.7 percent. Credit sales fell by 9.4 percent. 

Mr Price has also highlighted it expects trading conditions to remain tough.

Source
eNCA