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Key Points
- Pepkor secured regulatory approval to acquire five Retailability brands in a $108.1 million deal spanning 462 stores in Southern Africa.
- The Competition Commission set conditions to protect jobs and promote procurement from small, historically disadvantaged suppliers in the transaction.
- The acquisition expands Pepkor’s adultwear footprint beyond children’s wear, lifting Pepkor Speciality’s store count past 1,400 across multiple countries.
Pepkor Group, the investment holding company backed by South African billionaire Christo Wiese, has secured approval from South Africa’s Competition Commission to acquire five retail brands from Durban-based Retailability in a R1.9 billion ($108.1 million) cash deal.
The acquisition covers Legit, Style, Boardmans, Swagga and Beaver Canoe — a network of about 462 stores across South Africa, Botswana, Lesotho, Namibia and Eswatini. Pepkor first announced the transaction in March as part of a push to grow its adultwear market share through both organic and acquisitive strategies.
Approval comes with conditions as Pepkor grows in adultwear
The regulator said the deal is unlikely to substantially lessen competition but approved it with public-interest conditions. Pepkor will retain all employees of the acquired brands on no less favorable terms, refrain from merger-related retrenchments, and maintain or increase procurement from small and medium enterprises owned by historically disadvantaged people.
The R1.9 billion ($104 million) deal is a strategic move for the Cape Town-based retailer to expand its presence in adult fashion—an area where it has been less dominant compared to its stronghold in children’s and schoolwear.
The acquired brands—Legit, Swagga, Style, and Boardmans—will be integrated into the Pepkor Speciality division, which already includes Tekkie Town, Shoe City, Dunns, Refinery, CODE, SPCC, and Ayana. Edgars, Edgars Beauty, Red Square, Kelso and Keedo are excluded from the transaction and will remain under Retailability’s ownership.
In July, Pepkor drew major investor interest as the PIC boosted its stake above 15 percent while Silverpoint Capital entered with 8.51 percent. The moves followed Ibex’s exit and strong H1 results, underscoring shifting sentiment in Wiese’s retail empire.
Boosting retail reach
JSE-listed Pepkor operates across four segments, with clothing, footwear and homeware under Pepkor Speciality, and furniture and appliances under Pepkor Lifestyle. The group traces its roots to a 2014 deal in which Christo Wiese sold Pepkor to Steinhoff International for a 20 percent stake in the retail conglomerate.
Pepkor recently added 111 stores, taking its network to 5,823. The Retailability acquisition will lift Pepkor Speciality’s footprint past 1,400 stores, enhancing its supply chain, procurement scale and financial services reach. The new brands will be folded into existing divisions to maximize operational synergies.
Retailability had acquired Legit from the defunct Edcon, and later Edgars during Edcon’s business rescue. The latest deal cements Pepkor’s position as one of Africa’s top apparel and lifestyle retailers, widening its influence and streamlining operations.
