Mr Price eyes one more foreign market after European entry
The clothing and homewares group, which expects to close its purchase of German-based discount retailer NKD Group this month to expand into Central and Eastern Europe, outlined its overseas strategy during an investor presentation on the deal.
Chairman Nigel Payne told investors the board had narrowed its long-term offshore mergers and acquisitions focus to two regions after reviewing opportunities worldwide.
"Priority number one being Central and Eastern Europe and that's a growth platform on a 10 to 20 year basis. So it might expand, might become Southern Europe in ten years time or whatever," Payne said.
CEO Mark Blair added that "there is another territory that we've identified that would be highly attractive for us," but stressed the company would only move if conditions are right. He did not identify that territory.
Both the chairman and CEO said the group was not pursuing a global shopping spree. They added that Mr Price's dealmaking in South Africa was largely complete and did not expect further transactions there in the immediate future.
The NKD deal paves the way for Mr Price to tap faster-growing value retail demand in Europe, where market data shows the discount segment is outpacing overall apparel sales.
By 2030, the European business aims to generate $1.2bn in annual sales and deliver a double-digit operating margin, driven by more store openings, expansion in Germany, Poland and Italy and tight cost control, Blair said.