Retailer Pepkor is making a bold move into the booming beauty market using its record 2025 financial results as a launchpad for expansion while simultaneously shutting down its loss-making Shoe City chain.
The Pep and Ackermans owner on Tuesday revealed an aggressive move into beauty retailing, a category dominated by surging private-label growth and fierce competition from players such as Clicks. The group said Ackermans, one of Pepkor’s core brands, would launch a full beauty range in the 2026 financial year as part of its strategy to broaden its adult offering and compete in what has become one of the fastest-growing retail segments.
This comes as retailers are doubling down on affordable in-house brands, placing pressure on national beauty and personal-care manufacturers to defend their shelf space and brand relevance.
According to Trade Intelligence, more than 31% of Clicks’ front-shop sales now come from private labels, with private-brand personal care sales climbing 20.5% by mid-2025.
Pepkor’s latest results show why the company is confident enough to broaden its reach. The group reported record profit growth, with revenue up 12% to R95.3bn for the year to end-September, operating profit jumped 13.2% to R11.1bn, with normalised headline earnings per share surging 23.4%. Shareholder payouts increased 9.2% to 53c per share.
PEP grew sales 10.8% and added 95 new stores, while Ackermans lifted sales 7.2% and expanded into menswear with beauty next on its list. The Speciality division grew 8.3% and Lifestyle brands grew 7.2%.
Pepkor said it would close Shoe City after the unit failed to gain scale but stressed there would be no job losses with all workers absorbed elsewhere in the group’s 6,000-store network.
The company’s fintech business remains a powerhouse, with revenue up 31.1% to R16.6bn and Flash throughput rising to R60bn. The group also strengthened its adultwear offering with the acquisition of Legit, Swagga and Style, and expanded its home retail presence by purchasing Shoprite’s OK Furniture and House & Home businesses.
Erasmus said Pepkor would now focus on integrating new acquisitions, expanding omnichannel services and opening up to 300 more stores in 2026.
According to CEO Pieter Erasmus, the group’s push into new categories was deliberate and data-driven.
“In the year ahead, our focus will be on integrating recent acquisitions, consolidating new retail formats and expanding our digital and omnichannel capabilities,” he said.
“We plan to open between 250 and 300 new stores in full-year ‘26. With a strong operational base and clear strategic focus, Pepkor is well-positioned to continue providing easy access to everyday products and services at affordable prices.”
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