Retail group Lewis is speeding up its expansion plans, with its store network fast approaching the 1000 milestone, after a record-breaking 2025 financial year in which it opened the highest number of new stores in one year in its history.
The group on Thursday said it opened 58 new stores, the highest number of store openings by the group in a single year, taking its footprint to 976 stores.
“This included 36 new outlets for the specialist bedding chain Real Beds, which expanded its footprint to 52 stores,” the group said as it released its year-end March results, which saw double-digit growth in revenue and profit.
“Management plans to open 40 new stores in the 2027 financial year, including 25 traditional retail stores and 15 speciality bedding stores.”
The group, worth R4.2bn on the JSE, reported 11.1% growth in revenue to R10.3bn, with operating profit growing 12.8% to R1.3bn.
The company’s debtors’ book grew 15.2% to R9.2bn, while the key metric of return on equity increased from 15.4% to 16.2%.
Credit sales continue to dominate Lewis’ book, accounting for 69.4% of total merchandise sales of R5.5bn in the period.
However, the group has tightened its lending criteria amid financial pressure on consumers, resulting in an increase in the rate of declined credit applications in the year under review.
“The quality of the group’s debtors book remains sound, with satisfactory paying customers at 82.6% (2025: 83.5%) and the collection rate at 78.1% (2025: 78.9%),” the company said.
The group remains well positioned to gain market share in the uncertain economic environment and will continue to focus on affordability and good stock availability while launching new exclusive merchandise ranges to support future growth.
— Lewis
Lewis grew its customer base by 11%, representing an additional 77,000 accounts.
“This was achieved through effective customer acquisition and retention strategies and positions the group for future credit sales growth,” it said, while noting the impact of the Middle East War on consumers.
“The war in the Middle East has led to global economic uncertainty and volatility in international energy markets which has resulted in record fuel prices. Inflationary pressure from higher fuel and transport costs will adversely impact domestic consumer spending,” Lewis said.
“The group remains well positioned to gain market share in the uncertain economic environment and will continue to focus on affordability and good stock availability while launching new exclusive merchandise ranges to support future growth.”
Lewis is currently engaged in a titanic battle with Pepkor over its mooted deal to buy the furniture business of Shoprite.
The Constitutional Court ruled earlier this year that Lewis is entitled to intervene in the Pepkor–Shoprite merger proceedings because it raises credible, merger-specific competition concerns that have not been properly tested by the Competition Commission.
The apex court said Lewis had “advanced a coherent theory of harm” that went to the heart of the merger’s competitive effects, particularly in the low-income furniture retail market.
Lewis’ argument is that combining Pepkor’s and Shoprite’s furniture businesses will fundamentally reshape the national market.
Lewis calculated the merged entity would have a market share of 59%, based on it having more than 1,100 stores.
Lewis claimed the merger would eliminate competition between Pepkor and its “closest competitor in this particular segment of the furniture retail business”, namely Shoprite’s OK Furniture.
The dispute is before the competition authorities for adjudication.
Business Day
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