Shares in furniture group Lewis have surged by more than 440% over the past five years, adding R3.47bn to the group’s market value.
The rally reflects a strong post-Covid-19 recovery and sustained demand for credit-driven furniture retail, while SA’s furniture industry is undergoing big shifts.
Lewis outperformed several competitors in this period. Shares of Pepkor, which owns Russells, Bradlows, HiFi Corp, Incredible Connection, OK Furniture, and House & Home, rose 154%.
While Pepkor is not solely focused on furniture, its brands give it a significant share of the home goods market. HomeChoice recorded a 49.69% increase.
Other players with exposure to furniture and home improvement including Mr Price, TFG, and Woolworths grew their market values by 54%, 114%, and 53% respectively.
According to Fortune Business Insights, the country’s domestic furniture market is projected to grow to $2.57bn in 2025, with a compound annual growth rate of 5.17% to 2032. Urbanisation, rising demand for customised and functional furniture, and a growing preference for home office set-ups are contributing to rising sales, particularly in compact living spaces.
A study by the firm has shown that while the Covid-19 pandemic initially disrupted manufacturing and retail operations, it also accelerated lasting shifts in consumer behaviour.
Lewis has not been immune to the shifts and challenges. In its latest annual report, the Beares, Bedzone, and UFO owner flagged continued pressure on consumer spending due to high unemployment and economic uncertainty linked to geopolitical tensions and instability in the government of national unity.
The group said it also experienced cost volatility in raw materials and shipping, as well as disruptions to supply chains caused by port delays and infrastructure failures. Regulatory changes, rising compliance costs, and the need to manage credit risk in a strained consumer environment added further strain.
In response, Lewis has expanded its store footprint, grown credit sales, and strengthened its focus on specialist product categories. It opened 49 stores in the 2025 financial year, including 16 locations from its acquisition of Real Beds. Credit sales now account for 68% of its total merchandise revenue.
The expansion comes amid alarming credit habit changes in SA. Sanlam Credit Solutions on Monday said it has observed a generational divide in how South Africans manage debt. Millennials are carrying high levels of unsecured debt, with some spending more than half their income on repayments. Gen Z consumers, while newer to credit, are showing higher levels of digital financial literacy and more responsible borrowing habits, Sanlam said.
These dynamics matter for retailers such as Lewis, which target the lower- to middle-income credit market. Lewis approved fewer than half of credit applications in 2025, with the decline rate rising to 38.5%. Despite this cautious approach, the debtors’ book grew to R8bn, boosted by strong repayment behaviour. The group reported that 83.5% of its credit customers were satisfactorily paid in 2025, up from 74.4% in 2021. Over the past four years, Lewis has invested R2.5bn into its debtors’ book and has achieved steady growth in collections and customer retention.
Business Day recently reported that Lewis is locked in a R422m legal battle with insurers over a Covid-19 business interruption claim. The group argues that each of its 628 stores at the time of the lockdown is entitled to R1m in compensation, while insurers maintain the policy covers only R1m in total.
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