Staff Writer
Pepkor plans to open 200 new stores during the 2026 financial year as it expands its retail footprint and grows its banking, insurance and financial services businesses.
The retailer reported a 12.1% increase in normalised headline earnings per share (HEPS) for the six months ended 31 March 2026.
Revenue from continuing operations increased by 13.2% to N$54.8 billion, while operating profit rose by 9.4% to N$6.3 billion.
Statutory headline earnings per share increased by 10.3% to 93.1 cents.
Pepkor said the results were supported by stronger second-quarter trading, market share gains and growth in its financial services business.
The group said it continues to build on strong performance recorded in the previous year, when consumer spending received a boost from South Africa’s two-pot retirement withdrawals.
Group sales increased by 11.2%, while like-for-like sales rose by 3.6%.
Online sales grew by 30.9% and the company’s +more loyalty programme exceeded 17 million members.
Pepkor expanded its network to 6 657 stores after opening 89 new outlets, converting 40 stores and adding 541 stores through acquisitions.
In southern Africa, excluding PEP Africa and Avenida, like-for-like sales increased by 2.9%.
The company said it continued to gain market share across several retail categories.
PEP recorded growth in babies, children’s clothing, adultwear and homeware.
Choice Clothing also reported improved performance across its 118 stores.
Ackermans faced a more difficult trading period due to seasonal challenges, lower lay-by activity in October and March, and product execution issues in babies’ and children’s clothing.
The company said some customers also shifted spending to other Pepkor brands because of credit interoperability across the group.
Despite these challenges, Ackermans increased its market share in schoolwear and footwear.
Pepkor’s speciality retail segment recorded growth following the integration of Legit, Swagga and Style.
The acquisitions added 474 stores and strengthened the group’s position in the adultwear market.
In the furniture, appliance and electronics division, Pepkor Lifestyle outperformed the market in categories such as televisions and large household appliances.
The company also completed the acquisition of the non-South African operations of OK Furniture and House & Home.
The South African portion of the transaction remains under review by competition authorities following objections from a competitor.
Pepkor continued to grow its financial services operations during the reporting period.
Its FoneYam cellular rental business added 1.3 million accounts.
Profits from the cellular rental and insurance businesses doubled.
The Capfin lending business increased its loan book to 378 000 loans, while insurance revenue at Abacus more than doubled.
The retailer also confirmed plans to establish a bank after receiving regulatory approval and acquiring the CloudBadger Technologies platform and team.
Pepkor’s informal market platform, Flash, increased transaction volumes by 20.3% to N$34.7 billion.
The platform now supports 176 000 active traders.
