Retail giant spends R1.7 billion to open new stores in South Africa
Pepkor has massively expanded its store base following the purchase of several businesses from Retailability.
In March, Pepkor announced it had entered into an agreement with Retailability to acquire the Legit, Swagga, Style and Boardmans businesses.
Pepkor, which is the largest clothes retailer in South Africa, said that these businesses will be incorporated into the Pepkor Speciality business unit.
It stated that the new companies will add significant scale and expand their product offerings in the adult wear market, particularly in women’s wear via the Legit brand.
It said that the acquisition of the Swagga and Style businesses will help accelerate the expansion of the group’s store portfolio.
It will further support Pepkor’s ambitions to grow its share in the adult wear market.
The Boardman’s online brand, which operates in the homeware product segment, will be incorporated into the Pepkor Lifestyle business.
Pepkor expects the transaction to unlock further incremental value via leveraging its other services across the retail value chain, including financial services.
The acquisition will expand Pepkor Speciality’s store base beyond 1,000 stores, adding 469 stores to its existing 979-store base.
“We are delighted to have successfully concluded this transaction,” said CEO of Pepkor Emerging Businesses, Tyrone Vieira.
“This marks the beginning of an exciting chapter for these businesses under the custodianship of Pepkor.”
“As we move into the integration phase, we look forward to harnessing the strengths of these businesses within the Pepkor Speciality and broader Pepkor ecosystem.”
The final purchase consideration paid amounts to R1.7 billion and represents around 1.7% of Pepkor’s market cap.
All the conditions precedent for the Proposed Transaction have now been fulfilled, including approvals from competition authorities.
The deal was implemented effective 2 November 2025, given that all conditions precedent were fulfilled.
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