Mr Price Cellular Quietly Builds a Mobile Empire: One Store at a Time

From fashion to phones, the red-tag retailer is taking on South Africa’s big telecoms players – and winning.

In a retail world where innovation can feel like a buzzword, Mr Price is making quiet but measurable moves in a surprising direction: mobile. What started as a modest side hustle within the larger retail group has grown into a powerful piece of the Mr Price puzzle.

The company’s mobile arm, Mr Price Cellular, has posted a double-digit sales boost and is now claiming more space in South Africa’s crowded telecoms market. According to independent GfK research referenced in its annual results, Mr Price Cellular and its sister brand Powercell have gained ground, increasing their combined market share by 40 basis points in the year leading up to March 2025. That’s no small feat in a space dominated by household names like Vodacom, MTN, and Cell C.

Beyond Basics: From Airtime to Innovation

Mr Price Cellular isn’t just reselling airtime and sim cards. It’s playing the long game. One of the brand’s strongest moves came in March 2024 with the launch of its own smartphone range, Salt. Promoted across social media, Salt marks Mr Price’s shift from being a reseller to an actual product owner in the tech space.

Backed by a high accessories attachment rate of 69%, the mobile business now benefits from upselling power that blends fashion-style bundling with real tech value. Devices, covers, screen protectors – it all adds up.

Retail outlets have helped fuel this growth. Mr Price now has 562 in-store cellular corners and 61 standalone Powercell stores, making mobile tech accessible where people already shop for their fashion and homeware needs. The cross-selling is intentional – and it’s working.

The Numbers Don’t Lie

Retail sales for Mr Price Cellular and Powercell surged 13.2% to R1.3-billion, even as South Africa’s broader retail environment faced economic headwinds. This mobile growth is part of a larger story: the entire Mr Price Group is rebounding strongly.

In its full-year results, Mr Price reported:

• Headline earnings per share up 10.1%

• Operating profit rising to R5.8-billion

• Retail sales climbing 7.8% to R39.4-billion

• Comparable store sales growing 3.4%

And, in a clear sign of confidence, the company declared a final dividend of 593.5 cents, up nearly 13% from the previous year.

A Shifting Strategy

Mr Price’s CEO Mark Blair acknowledged a tough start to the year, but said the second half turned things around. The group benefitted from improved margins and smarter merchandise strategies, with fewer markdowns and better sales execution. The gross profit margin grew to 40.5%, thanks to these efforts.

It’s clear that Mr Price is no longer just a clothing store with some airtime on the side. Its mobile play is a calculated move to drive customer loyalty, keep people coming back, and deepen their relationship with the brand.

Local Insight: Why It Matters

South Africans are increasingly using prepaid smartphones as their main tool for internet access, banking, entertainment, and communication. By offering accessible devices and affordable cellular plans, Mr Price is tapping into the growing demand for digital inclusion at budget-friendly prices.

In many ways, Mr Price Cellular is serving the customer who shops smart, both in fashion and in data. As the telecoms space becomes more saturated, customer trust and brand affinity may prove more valuable than just competitive pricing.

What’s Next?

The group hasn’t revealed how big it wants its cellular business to become, but all signs point to steady scaling. With the Salt smartphone in circulation and stores continuing to expand their tech footprint, Mr Price isn’t just dressing the nation – it’s connecting it, too.

{Source:Tech Central}

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