Mr Price gives another civil unrest update

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Mr Price gives another civil unrest update

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Published Date: 2021-07-22 | Source: INCE|Community | Author: The Finance Ghost

Mr Price gives another civil unrest update

Before you panic, there isn't further unrest. In fact, the latest announcement starts off by noting that unrest has "almost completely subsided" - it's amazing to think it was only a week ago that a large portion of our country was a warzone.

Mr Price was one of the first retailers to update the market on the damage last week and I felt that they gave a measured view on the practicalities around Sasria claims. The latest announcement is final confirmation of the damage suffered by the group.

A total of 111 stores were looted. At one point, over 500 Mr Price stores were temporarily closed. This has decreased to 20 temporary store closures. By Tuesday this week, all distribution centres were fully operational.

However, the Durban Port is still experiencing some bottlenecks, which is creating challenges for supply chains in a number of industries in South Africa. Speaking of the supply chain, the impact on local suppliers is thankfully not as bad as Mr Price originally feared.

In another measured view that I've come to respect about this management team, Mr Price notes that they intend to reopen all stores but will need to consider each reopening based on the "specific circumstances of each store location and the status of the individual shopping centres in which these stores are located" - one wonders what the assessment criteria might be.

The share price hasn't quite recovered to pre-riot levels but is well up since the dip last week.





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