Mr Price expects a rise in customer bad debt due to Covid-19

A Mr Price store in Rosebank, Johannesburg. Picture: FREDDY MAVUNDA

The company said that overall collections had met expectations, but the plight of consumers will affect their ability to manage debt payments in the coming months.This comes as the group said its stores, e-commerce, head office, distribution centre and call centres will all be closed from Friday until April 16 2020 because of the lockdown imposed by the government to curb the rapid spread of coronavirus infections.

“In the early weeks of the outbreak we acted swiftly to ensure our supply chain was able to adjust to replace the most at-risk merchandise.”In the first two weeks of March, before President Cyril Ramaphosa’s announcement on March 15, sales grew 8.6%. Between March 16 and March 24 sales fell 22.1%. Demand for apparel and homeware merchandise has been significantly affected as consumers prioritise hygiene and food related goods.

The group said it expects further uncertainty, which could significantly decrease demand in the weeks and months ahead, making it hard to predict the full affect that Covid-19 will have on its operations.

That's why it's important to be proactive about this and grant customers a month or two payment holiday. COVID19SouthAfrica

Most businesses are going to feel thst effect, incl councils across SA...

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