Well-known retailer closing its doors after 39 years in South Africa
Pepkor is closing its well-known Shoe City retail chain after 39 years in South Africa. The move brings an end to a brand that began in 1986, when the first store opened in a 500sqm warehouse in Bellville.
From the start, the shop was an immediate hit, offering affordable and accessible footwear, and it expanded quickly.
By 2000, Shoe City had 65 stores, and by 2007—two years after joining the Pepkor Group—it had grown to 95 stores across the country.
Over the years, the retailer reshaped its image, moving from industrial spaces to modern mall locations and building a reputation for affordability and everyday fashion.
However, despite its long history, Shoe City has been struggling for some time. Pepkor said the chain has consistently dragged down the performance of its speciality division, which includes Tekkie Town and Refinery.
While this division managed overall sales growth of 8.3%, like-for-like growth was only 3%, largely because Shoe City continued to underperform.
After reviewing the business, Pepkor has decided that the format was “sub-scale”, did not offer strong future growth potential, and is no longer justified by the investment needed to keep it running.
Pepkor COO Sean Cardinaal told investors the company regularly reviews its assets to ensure it is putting its money and attention where it can get the best returns.
He said Pepkor had tried for years to adjust and improve Shoe City but had reached the point where it no longer saw a meaningful upside.
“To keep the team focused, we have decided to close this business,” he said. However, he stressed that all Shoe City employees will be moved to other Pepkor brands so that no jobs will be lost.
The closure will take place during the first half of Pepkor’s 2026 financial year. Of the 113 Shoe City stores currently trading, about 50 will be converted into other Pepkor formats, and the rest will be closed as their leases expire.
Massive expansion plans
The decision marks the end of one of South Africa’s familiar footwear chains, but Pepkor says it is part of a broader shift to focus on businesses with stronger prospects.
Despite the closure of Shoe City, Pepkor is expanding in several other areas. Its core retail business is performing strongly, gaining market share and benefiting from solid customer demand.
The group now operates more than 6,000 stores across its brands and has added over 10 million customers to its digital platforms.
Pepkor said its combined physical and online reach is becoming an increasingly important part of its growth strategy.
One of its major moves this year was the acquisition of Choice Clothing, completed on 1 June 2025.
Choice runs 105 stores and gives Pepkor a foothold in the semi-formal, off-price segment of the clothing market.
Pepkor believes the brand can grow to more than 300 stores. Although Choice will keep operating independently, it will gain support from Pepkor’s sourcing, supply chain, and financial services.
Pepkor also launched a new fashion brand, Ayana, aimed at mid-market women shoppers. Ayana is using 32 existing Ackermans Women’s store locations and has already launched an online store to reach new customers.
These moves have helped support strong financial results. Pepkor’s revenue rose 12% to R95.3 billion, with its core Clothing and General Merchandise segment up 8.9% to R66.9 billion.
Annual profit grew from R2.1 billion to R5.6 billion thanks to higher gross profit and fewer once-off capital charges.
Basic earnings per share increased by 171.3%, while headline earnings per share rose 14.8% to 161 cents.
On a normalised basis, excluding a tax benefit from the previous year, headline earnings grew 23.4%. The group also increased its interim dividend by 9.2% to 53 cents per share.
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