Pepkor Expands Its Empire With Hundreds of New Stores Across Southern Africa

Shoppers across South Africa may soon see even more Pepkor-owned stores popping up in malls and high streets, as the retail giant prepares to take over hundreds of outlets from one of its competitors.

The Competition Commission has given the green light for Pepkor to acquire 462 stores from Retailability, the group behind popular brands like Legit, Swagga, Style, and the online-only Boardmans. This deal, which spans South Africa, Botswana, Lesotho, Namibia, and Eswatini, will cement Pepkor’s position as the biggest clothing retailer in the country and one of the most ambitious players in Africa’s retail space.

A Deal That Leaves Edgars Untouched

While Retailability also owns Edgars and its spin-offs like Edgars Beauty, Kelso, Keedo, and Red Square, these are not part of the Pepkor deal. Those brands will stay under Retailability’s wing, leaving Pepkor to focus on its new acquisitions.

For South African shoppers, this means Legit will still be serving its bold ladies’ fashion, Swagga will keep delivering men’s and boys’ apparel, Style will continue offering formalwear and casual clothing, and Boardmans will keep selling homeware, but all under Pepkor’s umbrella.

Jobs and Local Suppliers Protected

Mergers in South Africa often spark fears about job cuts, but in this case, Pepkor has made some firm commitments. All employees from the acquired stores will keep their jobs with the same pay and benefits they have now.

There’s also a promise to support the local economy: Pepkor has agreed to maintain or even increase, its procurement from small and medium businesses, especially those owned by historically disadvantaged South Africans.

A Giant Getting Bigger

Pepkor isn’t exactly small to begin with. The group already operates more than 5,800 stores in 10 African countries, from Tekkie Town and Shoe City to Dunns and Refinery. This deal will slot Legit, Swagga, and Style into Pepkor Speciality’s existing 941-store portfolio, giving the company a stronger foothold in the adult clothing market, especially in womenswear.

Boardmans, meanwhile, will move into Pepkor Lifestyle’s stable, joining its furniture and homeware brands.

The company says the acquisition will add “strong synergistic benefits” corporate-speak for saving money and making more of it, by broadening its product range and boosting its share in the adult wear market.

A Quietly Big Purchase

Interestingly, despite the scale of the deal, Pepkor says the purchase price is small change compared to its overall value, less than 2% of its R96 billion market cap. The payment will be made in cash, sealing the deal without denting the company’s financial strength.

What It Means for Shoppers

For everyday consumers, the changes might feel seamless at first, the same brands, in the same places, selling the same products. But behind the scenes, this acquisition could mean more stable supply chains, better economies of scale, and potentially sharper pricing as Pepkor uses its size to negotiate better deals from suppliers.

If nothing else, it’s another sign that in South Africa’s fast-changing retail landscape, the giants are still getting bigger and Pepkor is leading the charge.

{Source: BusinessTech}

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