Pepkor is a South African-based investment and holding company with business interests in Africa, Australia, United Kingdom, Poland, Romania, Slovakia, and New Zealand. It manages a portfolio of retail chains focused on the value market selling predominantly clothing, footwear and textiles. Its main operating subsidiaries are Pep and Ackermans in South Africa and Best & Less in Australia, all based on a high volume/lower margin business model. Formally known as PEP stores the company changed its name to Pepkor Limited in 1982 and PEP stores became a subsidiary company. In 2011 Pepkor's chairman Christo Wiese was ranked as the 782nd richest person in the world on Forbes's list of the world's 1210 billionaires with an estimated net worth of US$1,6bn. In 2011 private equity company Brait bought a 24,6% stake in Pepkor for R4,18bn, valuing the company at about R17bn. Pepkor aims to expand its presence in the rest of Africa by opening 50 stores in Nigeria. In 2014 Christo Wiese sold Pepkor to Steinhoff International in exchange for about 20% of Steinhoff's issued shares. During the COVID-19 pandemic, Pepkor ceased to pay rents for its retail locations while the resultant lockdowns in South Africa prevented businesses from operating.
Subsidiaries
PEP
PEP retail stores focus on selling clothing, footwear, textiles, home ware and cellular products to the lower end of the market that aims to sell items at the lowest possible price in large volumes in both rural and urban areas. They are Pepkor's largest and first subsidiary with over 1,500 stores in countries across southern Africa.
Ackermans
Ackermans focuses on selling clothing, footwear and household textiles to the middle market from 374 stores across South Africa. Ackermans subsidiary Jay Jays, based upon the Australian brand of the also focuses on selling the same type of products in the middle market segment in high volumes and at low prices in the South African market from its 62 stores. Jay Jays in South Africa is a joint venture between Pepkor and Jay Jay's Australian parent company, Just Group.
Best and Less
Pepkor acquired the Australian retail chain in 1998 at the start of a strong period of growth for subsidiary over a seven-year period during which it doubled in size. Currently the chain has 191 stores across Australia adhering to Pepkor's business model of selling textiles in high volumes and low prices.
Dunns
focuses on selling adult clothing, footwear and accessories to the middle income market from its 266 stores across southern Africa. Its model is to also sell high volumes at low cost but also to sell these items from stores based in shopping centres and malls.
Shoe City
focuses on selling footwear from 86 stores in South Africa. Like most Pepkor subsidiaries it focuses on selling to the mid-market segment of the retail industry in large volumes at low prices.
Pepco
has 700 stores in Poland and is Pepkor's first major investment in continental Europe. Its business model focuses on offering cash-based discounts on clothing and houseware items to the lower income middle class segment of the market in small to medium-sized towns across Poland and other countries in Central and Eastern Europe. In April 2020, the company had 273 stores in Romania, 200 stores in Czech Republic, 170 stores in Hungary, 107 stores in Slovakia, 68 in Croatia, 43 in Lithuania, 39 in Bulgaria, 28 in Latvia, 24 in Slovenia and 15 in Estonia. The chain has announced entering Italian market in 2020, however, given the current situation with COVID-19, it is not yet clear when the first store will be opened.
John Craig
John Craig is a retail chain with 56 stores and 327 employees in South Africa that sells top quality men's branded apparel, footwear and accessories. Its target market is middle income South Africans with a Middle rating of between 5 and 8.
Postie Plus
has 65 retail clothing stores in New Zealand, and is Pepkor's first investment in New Zealand, purchasing Postie Plus after it was put into voluntary administration in 2014.
