Chamwe Kaira
Lewis Group Limited plans to open 40 new stores during the 2027 financial year after reporting higher earnings and expanding its retail footprint across Southern Africa.
The retailer said it will open 25 traditional stores and 15 speciality bedding outlets in the coming year.
The expansion follows a record year in which the group opened a net 58 stores, the highest number of store openings in its history, during the financial year ended 31 March 2026.
Lewis operates furniture, appliance and electronics stores across Southern Africa. In Namibia, the group has 27 stores in urban and rural areas, including its flagship Lewis store on Independence Avenue in Windhoek. It also owns Beares stores across the country.
The group reported headline earnings of R909.4 million, up 18.4% from the previous year.
Revenue increased by 11.1% to R10.3 billion, supported by growth in merchandise sales and credit-related income.
Merchandise sales rose by 7.3% to R5.5 billion.
Other revenue, which includes interest income, insurance and related services, increased by 15.7% to R4.9 billion.
Operating profit grew by 12.8% to R1.3 billion, while the operating margin improved to 23.8%.
Lewis said its debtors’ book increased by 15.2% to R9.2 billion as credit sales continued to grow.
Credit sales accounted for 69.4% of total merchandise sales during the year.
The retailer’s customer base grew by 11%, adding about 77 000 new accounts.
Stores outside South Africa, which make up 15% of the group’s network, recorded merchandise sales growth of 6.9% and contributed 18.2% of total group merchandise sales.
The group’s Real Beds division remained a major growth area.
The bedding chain expanded to 52 stores after opening 36 new outlets during the year.
Despite pressure on household finances, Lewis maintained strict lending standards.
The company increased its credit application decline rate to 41.8%, compared to 38.5% a year earlier.
Cash sales increased by 2.5%, while credit sales rose by 9.6%.
Lewis said the quality of its debtors’ book remained stable, with satisfactory-paying customers accounting for 82.6% of the portfolio.
Collections from instalment sales increased by 13.6% to R7.1 billion.
Looking ahead, the retailer warned that tensions in the Middle East and record fuel prices could affect consumer spending through higher transport costs and inflation.
Despite these risks, Lewis said it remains focused on growing market share through affordable products, reliable stock availability and new exclusive product ranges.
The board declared a final gross cash dividend of 560 cents per share.
This brings the total dividend for the year to 897 cents per share, up 12.1% from the previous year.
The group’s return on equity improved to 16.2%, compared to 15.4% in 2025.
