Mr Price gains regulatory approval to buy homewares retailer Yuppiechef

In March Mr Price announced its agreement to acquire 100% of kitchen and homewares retailer with Yuppiechef. South Africa’s Competition Tribunal has now approved the deal, which will bring a new segment of wealthier consumers to the Mr Price group.

Yuppiechef, which sells lifestyle kitchen and homeware brands, was founded in Cape Town in 2006 as an online retailer. It opened its first bricks and mortar store in Cape Town’s Tyger Valley Shopping Centre. It has its online retail channel Yuppiechef Online, seven stores in South Africa and a wholesale division, which distributes imported brands.

Mr Price is one of South Africa’s largest homewares and clothing retailers. It has stores in South Africa, Angola, Kenya, Mauritius, Mozambique, Seychelles, Zambia and Zimbabwe and primarily focuses on lower and middle income consumers. In May, the company released its latest annual results, which showed that total revenue decreased 2.9% to R22.3bn ($1.62bn), with physical retail sales falling 2.4% but online sales growing 64.1% year on year.

As such, the acquisition of a high end online retail specialist brings new expertise into the business and also opens up more experience on wealthier (higher LSM) consumers. It also provides a brand with which Mr Price can go into premium  malls in markets such as Angola, Kenya and Mauritius.