PEPKOR has entered into a transaction agreement with Retailability to acquire the Legit, Swagga, Style and Boardmans businesses, Pepkor announced on 25 March.
Retailability is a privately owned retail group, with a head office in Durban, which offers affordable apparel and lifestyle products across a number of retail brands in southern Africa. The businesses to be acquired operate 462 stores across South Africa, Botswana, Lesotho, Namibia and Eswatini.
Retailability will continue to operate the Edgars, Edgars Beauty, Red Square, Kelso and Keedo businesses which are not included in the proposed transaction.
Pepkor said it has previously stated its intention to expand its market share in adult wear through organic and acquisitive growth strategies. It said this is based on the group’s under-indexed market position in adult wear categories compared to its dominance in babies’, kids’ and school wear. The launch of the new Ayana womenswear brand in 32 stores at the end of February 2025 and recent acquisition of Choice Clothing are further examples of the group’s adult wear growth strategy.
The acquired businesses will be incorporated into the Pepkor Speciality business unit. Pepkor Speciality provides a range of adult apparel, footwear and accessories across seven retail brands, including Tekkie Town, Shoe City, Dunns, Refinery, CODE, SPCC and Ayana. Pepkor Speciality’s total store base comprises 941 stores across South Africa, Botswana, Lesotho, Namibia and Eswatini.
Pepkor said the proposed transaction will add significant additional scale to Pepkor Speciality and expand its product offering in the adult market, especially in women’s wear through the Legit brand.
The acquisition of Swagga and Style has strong synergistic benefits, expanding the group’s store portfolio and providing the opportunity to further grow the group’s share in the adult wear market. The Boardmans online brand, which operates in the homeware product segment, will become part of the Pepkor Lifestyle business, according to the company.
Pepkor said it will unlock value through its extensive scale in sourcing, supply chain and back-office functions, in addition to leveraging its capabilities in credit and other financial services.
Tyrone Vieira, CEO of Pepkor emerging businesses, said: “We are excited to welcome the Legit and other Retailability businesses into Pepkor Speciality, forming an integral part of our strategy to grow our market position in adult wear. These businesses are a natural fit for Pepkor Speciality and we are looking forward to integrating them and unlocking benefits from the added scale.”
Pepkor’s COO, Sean Cardinaal, said that the acquisition of these businesses “represents a major milestone in the execution of Pepkor’s strategic growth model by accelerating growth in the group’s Traditional Retail core. This, in turn, will enable strategies in our other growth pillars of Financial Services & Connectivity, Omnichannel, and Leverage & Efficiency – contributing to Pepkor’s delivery of compelling and sustainable long-term performance and returns.”
The conclusion of the proposed transaction is subject to the fulfilment of both regulatory and commercial suspensive conditions customary for a transaction of this nature.
