Pepkor, one of South Africa’s biggest retail groups, is about to get even larger. The Competition Tribunal has conditionally approved Pepkor’s acquisition of several clothing brands from Retailability, which will see hundreds of stores added to Pepkor’s already extensive network.
Once the deal is finalized, Pepkor Trading will take control of brands including Legit, Style, Swagga (including Beaver Canoe), and Boardmans. These brands currently operate a total of 462 stores across South Africa, Botswana, Lesotho, Namibia, and Eswatini.
What’s Not Included?
The deal excludes Edgars, Edgars Beauty, Red Square, Kelso, and Keedo, which will continue to be operated separately by Retailability.
What Will the Acquired Brands Offer?
- Legit: Ladies’ fashion, apparel, and beauty products
- Swagga: Apparel for men and boys
- Style: Contemporary and formal fashion for men and women, kids’ clothing, and cellular products
- Boardmans: Homeware, small appliances, bedding, towels, crockery, outdoor cooking gear, and more
Conditions and Commitments:
The approval is subject to conditions focusing on employment, procurement, and supplier arrangements. Pepkor has committed to maintaining current employment terms, with no retrenchments expected due to the merger. Additionally, the group pledges to increase procurement from local SMEs and providers owned by historically disadvantaged persons (HDPs).
Strategic Fit and Growth Goals:
This acquisition aligns with Pepkor’s strategy to grow its presence in South Africa, where it already operates over 5,800 stores across 10 African countries. The new stores will be integrated into Pepkor’s Speciality division, which includes brands like Tekkie Town, Shoe City, Dunns, and others, totaling 941 stores.
Broader Impact:
The move is expected to strengthen Pepkor’s market share, especially in women’s wear through the Legit brand, and expand its product offerings. The online presence of Boardmans in the homeware segment will also become part of Pepkor’s Lifestyle division.
Financials:
The total purchase price is less than 2% of Pepkor’s R96 billion market cap and will be paid in cash upon closing.
This strategic expansion is set to reinforce Pepkor’s position as the leading retailer in South Africa’s clothing and homeware markets, offering more options and greater reach for consumers across southern Africa.