6 days ago
Pepkor plans 250 more stores by year-end as operating profit grows 13.3%
Pepkor, the owner of Pep, Tekkie Town and Bradlows furniture stores, plans to open between 250 and 300 new stores by the end of the year.
The group recently announced a number of acquisitions including Legit, Style and Boardmans from Retailability. It also bought House & Home furniture from Shoprite.
On Tuesday the company reported a 12.8% rise in revenue to R48.8bn for the six months to March, while operating profit grew by 13.3% to R5.8bn.
Pepkor's traditional retail businesses delivered a strong trading performance, outperforming the market and expanding market share.
The clothing and general merchandise segments, which includes Ackermans, reported a 9.5% increase in sales to R34.5bn. The furniture, appliances and electronics segment, which also includes HiFi Corp and Incredible, reported a 9.1% rise in sales to R6.5bn.
Pepkor also provides loans, store credit and leasing of cellphones. The segment — fintech — reported revenue growth of 34.5% to R7.9bn.
The company said it sold 6.8-million cellphones, up 17%, during the six months to March. Eight out of 10 prepaid handset sales in South Africa are sold by Pepkor companies.
'Combined with the group's expansive store network as a powerful distribution channel, Pepkor has cemented its position as the clear leader in the cellular market, backed by a differentiated and highly resilient strategy,' it said.
FoneYam, the cellular handset rental product launched last year and designed to make smartphones affordable for customers, continued to grow strongly with active customers reaching 1.5-million by the end of March.
Monthly activations averaged 165,000 over the period, said Pepkor.
CEO Pieter Erasmus said: 'We have delivered consistent retail performance, strategically executed on our fintech growth ambitions and maintained disciplined cost management. Our focus on digital and financial inclusion yields tangible benefits for our customers and the group's performance.'
Erasmus said the company was particularly pleased with the progress in its fintech segment and its expanding cellular market share, which are becoming increasingly significant contributors to its overall success.
'Strategic acquisitions announced will further diversify our offering into new customer segments and product categories — positioning Pepkor for sustained growth and value creation.'
