Listed retailer Pepkor continued to execute on its growth strategy with the opening of 168 new stores during the first half of FY25, expanding its total footprint to 5 978 stores across key markets.

This includes the successful rollout of 32 Ayana stores, reinforcing its position in the adult wear segment and marking significant progress in retail space growth of 2.1% year-on-year.

This expansion supported strong retail performance, driving 12.8% revenue growth to R48.8 billion and 13.3% operating profit growth to R5.8 billion.

Pepkor is a Cape Town-based investment and holding company focused on the discount and value consumer retail and fintech markets and has the largest retail store footprint in southern Africa.

The group delivered 12.4% growth in HEPS to 84.3 cents, and 18.9% growth in normalised HEPS, underpinned by robust cost management, strategic execution in fintech, and ongoing market share gains.

Highlights:
-Revenue up 12.8% to R48.8 billion
-Gross profit margin expanded 110 bps to 39.2%
-Operating profit up 13.3% to R5.8 billion
-Normalised HEPS up 18.9% to 84.3 cents
-Strong cash conversion at 82.3% and 23.7% return on net assets

Pepkor’s Traditional Retail business demonstrated strong trading momentum, with PEP, Ackermans, and Speciality contributing significantly:

-PEP opened 43 new stores, reaching 2 649 stores
-Ackermans added 19 stores, totaling 1 018
-Speciality grew to 972 stores
-Ayana, Pepkor’s new adult wear brand, launched in 32 stores

The group said that merchandise sales increased 10%, with like-for-like sales up 7.8%. Growth was broad-based across all regions and supported by improved product availability, expanding credit adoption, and robust cellular performance.

The group noted that its fintech segment grew revenue by 34.5% to R7.9 billion, with its FoneYam smartphone rental reaching over 1.5 million customers.

Pepkor’s strategic growth included the acquisition of Choice Clothing (107 stores, effective 1 June 2025, with potential to scale beyond 300), the proposed acquisition of Legit (adding approximately 462 stores to Speciality), and the Shoprite furniture business, which contributed around 400 stores to the Lifestyle segment, expanding its base from 922 stores.

Pepkor entered into a transaction agreement with Retailability Limited in March to acquire 462 stores, including the following brands: Legit, Swagga, Style and Boardmans.

Looking ahead, Pepkor said its trading momentum continued into H2 FY25, supported by early winter season demand and strong base store performance.

The group noted that it remains on track to open 250–300 new stores in FY25.