Pepkor Holdings Ltd

Pepkor Holdings Ltd Organogram

Pepkor Holdings Ltd is a diversified retailer listed on the Main Board of the JSE with market capitalization of R76.4bn as of 30 September 2023. Pepkor’s retail operations are predominantly focused on the defensive and resilient discount and value segments of the retail market. The Pepkor Group provides clothing, footwear, homeware, general merchandise, cellular products, furniture, appliances, consumer electronics, building materials and financial services in 10 countries, including Angola, Botswana, Lesotho, Mozambique, Malawi, Namibia, South Africa, eSwatini (formerly Swaziland) and Zambia. Operations were expanded to Brazil following the acquisition of an 87% interest in Grupo Avenida in February 2022. The Pepkor Group's interest in Grupo Avenida increased to 88% following a capital injection during FY23. Pepkor generates 95% of its revenue in the Southern African Customs Union, which includes South Africa, Botswana, Lesotho, Namibia and eSwatini (BLNE countries). . Operations were expanded to Brazil following the acquisition of an 87% interest in Grupo Avenida in February 2022. Pepkor generates 95% of its revenue in the Southern African Customs Union, which includes South Africa, Botswana, Lesotho, Namibia, and Eswatini (BLNE countries). The group is organised into business units based on products and services through the following segments: Traditional Retail: • Clothing and General Merchandise, which includes all clothing, footwear, homeware and cellular products has a total of 4,888 stores: - Pep - comprises 2,602 stores and 16,800 employees across South Africa, Botswana, Lesotho, Namibia, Eswatini with a total trading area of 903,000 sqm. - Pep Africa - comprises 227 stores, and 2,000 employees across Angola, Malawi, Mozambique, and Zambia with a total trading area of 89,000 sqm. - Ackermans - comprises 1,027 stores and 8,200 employees across South Africa, Botswana, Lesotho, Namibia, and Eswatini with a total trading area of 548,000 sqm. - Pepkor Speciality, comprises 897 stores (199 Dunns, 118 Refinery, 35 Code, 8 S.P.C.C., 125 Shoe City stores and 406 Tekkie Town stores) and 4,700 employees, across South Africa, Botswana, Lesotho, Namibia, Eswatini with a total trading area of 225,000 sqm. - Pep Clothing (PepClo) is the group's owned large manufacturing operation of basic apparel that provides products to PEP, Ackermans, Dunns and CODE. Employing 1,781 people, it produces most of Pep's schoolwear and has expanded to include underwear and flipflops. - Avenida - Brazilian value retailer with 135 stores, 2,100 employees, and a total trading area of 105,000 sqm. • Furniture, Appliances and Electronics includes JD Group, has a total of 892 stores across South Africa, Botswana, Namibia, and Eswatini, with a total trading area of 391,000 sqm, as of 30 September 2023: - Bradlows - 239 - Russells - 233 - Rochester - 43 - Sleepmasters - 241 - Incredible Connection - 82 - HiFi Corporation - 54 • Building Materials, includes The Building Company business which sources, distributes, wholesales & retails general and specialised building materials, has a total of 137 stores, 5,600 employees in South Africa and Namibia with a total trading area of 347,000 sqm: - Buco - 95 - Timbercity - 31 - Tiletoria - 3 - Other brands include: Floors Direct, MacNeil, Cachet, B-One, Buchel, W&B Hardware, Buildware, Citiwood, and Brands 4 Africa FinTech: • Financial services include businesses that leverage Pepkor’s core retail capability to enable sales or provide complementary financial service products to customers in the formal and informal market and have 2,400 employees. Services offered include: - Credit: Tenacity supports the Ackermans, PEP and Pepkor Speciality CGM brands in terms of interoperable credit sales across brands through store cards to customers. - Connect: Provides credit through instalment sale receivables to the furniture, appliances and electronics brands. - Lending: Capfin provides unsecured credit to customers under the Capfin brand and has 170,000 current loans. - Insurance: Abacus provides insurance products via its subsidiaries to customers of the group. • Informal Market This segment includes retail and sale of complementary financial services and products to online customers through Flash, a technology-driven B2B business, committed to adding value to the lives of traders in the informal retail market. Using smart technology, traders can offer customers greater convenience, providing access to virtual products and services such as mobile data, airtime, prepaid electricity, money transfers, bill payments, streaming services and gaming. As of 30 September 2023, R37.1bn cash was digitised in the informal market.