DIVISIONAL REVIEW

                           Mr Price Weekend Material is a value                 As discussed previously in this report, the growth in the demand
                           retail chain offering casual, fun and                for fashionable everyday smarter clothing has been met by the
                           relaxed fashion for the whole family.                launch of the URB sub-brand. This brand provides smarter apparel
                           From clothing to accessories to                      for young adults to complement the strong assortment in casual
                           intimate wear, Weekend Material is                   wear merchandise. The division is now committed to providing
                           known for its range of popular house                 an Everyday assortment designed to meet the growing demands
                           brands which include RT, Red (surf-                  of customers.
                           wear), Body Material (intimate wear),
                           MAXED (sportswear) and Insync                        Growth and expansion remain areas of importance and positive
    Stuart Bird (45)       (smart and casual apparel for the                    development for the division. The expansion strategy, which
                           moderate female customer). The                       focuses on improving the customers’ shopping experience while
business of Mr Price Weekend Material is to delight customers                   accommodating new departments and categories, continues to
with fashion and value while providing profit to add worth to                   deliver good results. Since its inception, 31 000 gross square
both the partners and stakeholders.                                             metres have been added to existing stores. The success of the
                                                                                expansion strategy and the continuing growth of merchandise
The division grew sales by 9% to R2,2 billion with deflation of                 assortments allows the division to remain committed to growing
2% and a growth in weighted average trading space of 5%. The                    its existing stores from an average of 555 square metres to an
division’s winter season was adversely affected by an overcautious              average size of 755 square metres. This provides the space for
assortment and a number of delivery problems. Corrective action                 growth in existing brands and new brands such as Project (fashion
taken during June and July resulted in a more positive performance              ladieswear) and URB (smart urban apparel).
in the second half. Learning from the winter lessons, summer
trade was exceptionally strong, with comparable sales in this
period growing by 13%. The transitional and early winter sales
performances indicate a continuation of this positive sales growth
into the new financial year.

Results from the relatively new intimate wear and accessories                                                Mr Price Weekend Material – Sales
                                                                                                2 500
departments continue to be excellent while the re-launch of
footwear has exceeded expectations.
                                                                                                2 000

OPERATING STATISTICS                               2005              2004†
                                                                                Rand millions

                                                                                                1 500
Sales (R000)                                 2 188 526          2 013 564
Number of stores                                   301                306
                                                                                                1 000
Trading area (square metres)                   141 528            131 293
Sales per square metre*                        R16 165            R15 597
Associates                                       3 512              3 281
Sales per associate*                         R647 349           R616 301

* Weighted average on timing of store openings/closures and changes in number
  of associates.                                                                                   0
† 2004 figures exclude the Chile operations.                                                            96   97   98   99   00          01   02   03    04    05

                                                                                                                                                       annual report 2005   15

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