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Key Points
- Pepkor is acquiring four Retailability brands for $104 million, adding 462 stores across five African countries to strengthen its adultwear market position.
- The deal enhances Pepkor’s retail footprint, integrating Legit, Swagga, and Style into its Speciality division while Boardmans joins its Lifestyle portfolio for diversification.
- Pepkor will finance the transaction through cash reserves, leveraging its supply chain scale and financial services to drive growth and efficiency across its retail network.
Pepkor Group, the investment holding company backed by South African billionaire Christo Wiese, has struck a deal to acquire four adult fashion brands from Retailability, a privately owned Durban-based retail group, for $104 million.
The acquisition, which is subject to regulatory approval, will add 462 stores across South Africa, Botswana, Lesotho, Namibia, and Eswatini to Pepkor’s expanding retail network, strengthening its position in the adultwear market.
Expanding in the adultwear market
The R1.9 billion ($104 million) deal is a strategic move for the Cape Town-based retailer as it looks 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.
“This transaction is a milestone in expanding our adultwear market share,” said Tyrone Vieira, CEO of Pepkor Emerging Businesses. “Legit will enhance our womenswear offering, while Swagga and Style will create operational and store synergies within our portfolio.”
Boardmans, a homeware-focused brand, will be incorporated into Pepkor’s Lifestyle division, further diversifying the group’s retail mix. The acquisition, valued at less than 2 percent of Pepkor’s market capitalization, will be financed through internal cash reserves.
Growing scale and strength
Pepkor operates an extensive retail network across Africa, Australia, and Eastern Europe, selling apparel, footwear, textiles, and accessories. The company’s origins trace back to a 2014 deal in which Wiese sold Pepkor to Steinhoff International in exchange for a 20 percent stake in the troubled retail conglomerate.
As part of its expansion plans, Pepkor recently added 111 stores, bringing its total count to 5,823. The acquisition of Retailability’s assets will push the Pepkor Speciality store footprint past 1,400, allowing the group to capitalize on its supply chain strength, procurement scale, and financial services expertise.
With this latest move, Pepkor is further cementing its position as one of Africa’s top apparel and lifestyle retailers, expanding its market influence while streamlining operations across key business segments.
