Stewart Cohen and Laurie Chiappini

Mr Price’s Factory Shop in Klerksdorp

In 1982 after extended careers in retailing and manufacturing Stewart Cohen and Laurie Chiappini, our Joint Chairmen, were determined to start their own business as partners. They established a retail consultancy called United Stores which was designed to combine the buying power and synergies of small retailers to improve their competitive position. After building a client base of 50 retailers, the business struggled during the recession of the early 1980’s. In order to create a badly needed positive income stream the two partners created a franchised retail operation for their clients called Mr Price’s Factory Shop and the first store was opened in Klerksdorp in 1985. base of 50 retailers, the business struggled during the recession of the early 1980’s. In order to create a badly needed positive income stream the two partners created a franchised retail operation for their clients called Mr

Alastair McArthur

Founders Stewart Cohen and Laurie Chiappini both started out on shop floors and when they met in autumn 1979 a relationship evolved based on mutual trust and a positive vision. Their earlier employment experiences had given them a negative view of typical businesses and they believed there was a better way of doing business – one where individuals exploited their full potential.

In early 1985 the partners recognised factory shops as the future, but they did not have the money to establish one. They felt clothing prices were too high and dreamt of a new kind of factory shop selling quality merchandise at substantially lower prices. This would be a third-generation factory shop boasting attractive interiors, wanted merchandise and incredible advertising, but a very low cost structure to allow for low margins off high volumes.

The very first Mr Price Apparel stores were franchised because of their lack of funds. However when John Orrs Ltd, which also owned Miladys, was acquired in 1986 by Stewart and Laurie in partnership with a bank, the listed company began opening Mr Price stores and acquiring the franchised stores. Alastair McArthur joined the group as MD of Mr Price and the name of the company was changed over time to the Mr Price Group. Mr Price stores were opened rapidly throughout South Africa and by 1995 there were 237 stores. In 1996 Sheet Street was acquired and Mr Price Home stores and Mr Price Sport stores were established in 1998 and 2007 respectively. Today there are approximately 1000 corporate owned stores in Southern Africa and 24 franchised stores abroad.

John Orr

The original

John Orr store

Mr Price is unique. Although the first store opened in 1985 and we only began growing in the 1990s, the success story is much older. It is a story about a struggle against conventional thinking; about a dream to make a difference and a strong will to win against huge odds.

First group owned store in Brickhill Road

Stewart had seen his father work 40 years for one company, but because he did not own shares, he had retired on an inadequate pension. In his heart Stewart knew there was another way whereby successful companies share their wealth creation with employees.

Stewart and Laurie studied other companies where the associates had shares or share options – and were moved by stories of truck drivers and sales associates who became wealthy because of that initiative.

Their dream was that every associate hold their shares and use the long-term growth in the value of those shares to build financial security and a foundation for a happy home life.

Their story is proof that dreams can become a reality if pursued

with passion, value and partnership.

In 2011 the group celebrated the silver anniversary of the change in control of John Orrs. During that quarter century sales grew from R100 million to R10 billion, attributable profits rose from R2,6 million to over R1 billion and the share price increased from 30 cents to R75, in the process benefitting thousands of associates.

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1986 1991 1996 2001 2006 2011

Share Price DPS HEPS

25 YEAR COMPOUND ANNUAL GROWTH RATE

Headline earnings per share 23.5%

Dividend per share 25.3%

Share price 26.2%

Stewart Cohen & Laurie ChiappiniHonorary chairmen