The Miladys brand could be Mr Price’s biggest opportunity

In his eighth year as CEO of Mr Price Group, Stuart Bird will have something to celebrate. He leads a team that has seen Mr Price’s share price gain more than 50% since it reported a 12% profit decline in the first quarter of last year.

It was the first such decline after a 16-year streak of profitability.

Since Bird has been at the helm, Mr Price’s share price has risen more than 350%, the best performance by a JSE-listed retailer.

But just a year ago some — me included — were questioning Mr Price’s position as the darling of the discount-apparel sector.

The group attributes almost 80% of its sales to cash, so it doesn’t come as a surprise that it could outperform competitors that rely on customers who have access to credit.

But while the Mr Price stock sounds like an easy sell to shareholders, Bird’s lack of appetite for risk may be his drawback.

MRP Home is planning to launch a test store in Poland in the second half of the financial year and the group’s African operations will receive renewed focus — it took control of its franchise stores in Kenya in April and Sheet Street will open a pilot store in Zambia.

However, beyond capitalising on expansion, which sometimes seems like the obvious thing to do, Mr Price should look beyond its brand portfolio to unlock its value.

Its model appeals to those who are looking for a “cheap but good” purchase, which in a weak economy is like finding a needle in a haystack.

But without a diversified brand portfolio, the group might be shooting itself in the foot.

Even the best companies that operate in a discounted environment will tell you that ensuring you have all sides of the market covered improves your ability to remain competitive.

TFG’s Exact and The Fix brands are its value offering and are among the major contributors to revenue.

But it’s not just among the apparel retailers that spreading your wings is a good idea. Shoprite, whose DNA is discount retail, has wormed its way into the middle- and upper-income market with Checkers.

Consumers who have a little extra money to spend are the sort that Mr Price should be targeting.

The group’s brands should be going where the money is. And Miladys might be the best brand to lead the charge.

In its current incarnation, Miladys is an ode to the 1990s housewife, who apparently dressed in florals all season long.

The brand has long been a problem for Mr Price, even though a change in leadership has improved its performance.

Miladys — which has fuller-sized, older women as its core customers — could be resuscitated to compete in a space that has been left vacant by many mainstream retailers.

Think Stuttafords, only cheaper.

So while Mr Price’s quick rebound is definitely one for the books, some new brands might be just what it needs to catapult the group to new heights.

Mr Price is doing well, but could do even better if it aimed a little higher