South African (SA) fashion retailer Mr Price will acquire NKD Group, a German based discount retailer for up to $567.55 million, it said on Wednesday, marking its first entry to the European market.
Mr Price shares were down 13.35%. Mr Price said that NKD, an apparel and homeware retailer with 2 108 stores in seven Central and Eastern European countries, is a strategic fit.
Market data indicates that the growth in the value retail market is outpacing that of the overall retail market.
In Europe, value retailing accounts for about 22% of the market.
“After meeting the NKD team, it was evident that this was the right business to pursue,” said the group’s Chief Executive Officer Mark Blair.
“Like us, they are value-retailers at heart and have a very clear understanding of who their customer is and how to best serve them,” he added.
The transaction is subject to regulatory approvals, including clearance from the European Commission and the SA Reserve Bank.
It is expected to close by the second quarter of 2026, Wednesday’s statement said.
Once completed, Mr Price’s annual revenue would increase to approximately $3.12 billion.
–Reuters–
