South African retailer Mr Price plans limited international expansion after its upcoming move into Europe.
The group expects to complete its acquisition of German discount retailer NKD Group this month, unlocking Central and Eastern European markets.
Chairman Nigel Payne said the board narrowed its long-term offshore mergers focus to two regions after reviewing global opportunities extensively.
“Priority number one is Central and Eastern Europe, a growth platform over 10 to 20 years,” Payne told investors on Tuesday.
Payne added expansion could eventually extend into Southern Europe, depending on market conditions and long-term strategic priorities.
CEO Mark Blair said another territory is attractive, but the company will only pursue it if conditions prove favourable and sustainable.
Both executives stressed that Mr Price is not pursuing a global shopping spree and expects no immediate domestic acquisitions.
The NKD deal positions Mr Price to capture faster-growing value retail demand across Europe, where discount apparel outpaces overall market growth.
Blair said the European business aims to generate 1 billion euros in annual sales by 2030 and maintain double-digit operating margins.
Growth will be driven by store openings, expansion in Germany, Poland, and Italy, and rigorous cost management strategies across the continent.
In 2024, NKD recorded net sales of 712 million euros and an EBIT margin of 4 percent, highlighting potential for improvement under Mr Price.