South Africa’s largest clothing retailer expands store portfolio with R1.7 billion acquisition

Pepkor, South Africa’s largest clothing retailer, has significantly expanded its store footprint with the acquisition of several businesses from Retailability in a deal valued at R1.7 billion.

The transaction adds 462 retail stores across five countries, with 337 stores located in South Africa and 125 in other BLNE countries (Botswana, Lesotho, Namibia, and Eswatini).

The purchase consideration is less than 2% of Pepkor’s market capitalisation and will be settled in cash. The transaction is expected to be implemented in the first quarter of FY26, pending approval from the Competition Commission.

The acquisition is part of Pepkor’s broader strategy to unlock incremental value across its retail ecosystem, including leveraging its financial services and operational capabilities.

“We are delighted to have successfully concluded this transaction,” said Tyrone Vieira, CEO of Pepkor Emerging Businesses.

“This marks the beginning of an exciting chapter for these businesses under Pepkor’s custodianship. As we move into the integration phase, we look forward to harnessing their strengths within the Pepkor Speciality and broader ecosystem.”

All regulatory approvals, including those from competition authorities, have been secured, and the transaction was implemented effective 2 November 2025.

Analysts note that while domestic consumer demand remains resilient, investors continue to navigate volatility linked to currency fluctuations, energy supply challenges, and global trade disruptions.

In this context, Pepkor’s move is seen as a strategic consolidation designed to strengthen its market position and capture growth opportunities even amid economic unpredictability.

Expanding the store network not only increases physical reach but also allows Pepkor to integrate additional revenue streams, such as financial services, loyalty programs, and supply chain efficiencies.

Industry observers suggest that acquisitions of this scale signal confidence in South Africa’s long-term retail potential, despite short-term headwinds.

By bringing multiple established brands under one roof, Pepkor is positioned to enhance operational synergies, diversify its offerings, and maintain a competitive edge in the country’s dynamic retail sector.

As Pepkor integrates these new assets, the company aims to leverage its experience, infrastructure, and market knowledge to ensure sustainable growth and solidify its leadership position across South Africa’s fashion and specialty retail markets.