Pepkor plans to bolster expansion, double store openings in Brazil

Pepkor Holdings Ltd. accelerates its Brazilian expansion, aiming to double its target store openings to 50 a year. CEO Pieter Erasmus confirms the success of Grupo Avenida S.A., with plans to unveil 26 stores by September. Brazil's response exceeds expectations, with sales contributing 5.5% of Pepkor's revenue. Eyeing further growth, the retailer eyes up to 600 outlets in Brazil and explores expansion into other South American countries. Meanwhile, in its home market, Pepkor counters competition with strategic women's clothing store openings..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..By Janice Kew.Pepkor Holdings Ltd. plans to almost double its previous target of opening 50 outlets a year in Brazil as Africa's largest clothing retailer pushes for faster growth in South America. .___STEADY_PAYWALL___.The company's Grupo Avenida S.A is on track to unveil 26 stores in the six months through the end of September, adding to the 22 shops opened in its first-half, Chief Executive Officer Pieter Erasmus said in an interview Tuesday after the earnings report. That may double in the next financial year, he said. .Read more: Pepkor boss says vaccines key to South Africa job boost."The customers in Brazil are responding exceptionally well," Erasmus said. "Every store that we open we are exceeding our targets." .Avenida's contribution to sales accounted for 5.5% of Pepkor's revenue, up from 4.4% a year earlier. The retailer sees opportunity to open as many as 600 outlets in Brazil in the next five to seven years and has identified three other possible countries in the region, even as far as Mexico, he said..In its home market, Pepkor which own South African chains Ackermans, Pep and Tekkie Town is repositioning its women's clothing with plans to open about 50 standalone stores in the summer, to counter intensifying competition from both international fast-fashion brands such Shein and Temu as well as local retailers such Shoprite Holdings Ltd., which also opened a specialist clothing unit. .Pepkor reported a 9.5% increase in its first-half revenue. A recovery in Ackermans due to more items sold at full price and cheaper shipping rates, helped push the company's retail sales 8.6% higher. Meanwhile revenue from the its fin-tech unit rose 25% and now contributes 13% Pepkor's total sales, as it rapidly expands sales of affordable mobile phones at its stores..Pepkor shares dropped as much as 1.8% in Johannesburg, bringing it's decline to 6.3% this year..The discount clothing retailer, which started operations 100 years ago in rural South Africa and now has 5, 823 stores in nine African countries and Brazil, previously had exposure in eastern Europe through Pepco Group N.V...Read also:.Flash Briefing: SAA needs modern fleet to be competitive; Pepkor on refurb spree after July riots; upcoming electionsBillionaire retail king Christo Wiese returns to diamond mining roots in daring new ventureRetailers on the ropes as impact of July riots manifests.© 2024 Bloomberg L.P.

Pepkor plans to bolster expansion, double store openings in Brazil

Related Stories

UK gilt yields flirt with 2026 highs as bond market sends Burnham an unmistakable message before he even enters No. 10

From pariah to winner: SA emerges as surprise beneficiary as Trump rebuilds his tariff wall on sounder legal footing

Revolut proves the doubters wrong — $115 billion and grateful for the rules

Todd Buchholz on BizNews: Why Joe Sixpack is still paying for the Fed's mistakes