PEPKOR HOLDINGS LTD

PEPKOR HOLDINGS LTD Organogram

Pepkor Holdings Ltd\'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, Brazil, Lesotho, Mozambique, Malawi, Namibia, South Africa, Eswatini and Zambia. \r\n\r\nThe group is organised into business units based on products and services through the following segments:\r\n\r\nTraditional Retail (total 5,899 stores with a trading area of 2,305,000 sqm): \r\n• Clothing and General Merchandise, which includes all clothing, footwear, homeware and cellular products has a total of 4.993 stores:\r\n- Pep - comprises 2,617 stores and 17,100 employees across South Africa, Botswana, Lesotho, Namibia, Eswatini with a total trading area of 910,000 sqm.\r\n- Pep Africa - comprises 230 stores, and 1.900 employees across Angola, Malawi, Mozambique, and Zambia with a total trading area of 90,000 sqm.\r\n- Ackermans - comprises 1,041 stores and 9,300 employees across South Africa, Botswana, Lesotho, Namibia, and Eswatini with a total trading area of 557,000 sqm.\r\n- Pepkor Speciality, comprises 922 stores which includes Dunns, Refinery, Code, 8 S.P.C.C., Shoe City stores and Tekkie Town stores and has 4,600 employees, across South Africa, Botswana, Lesotho, Namibia, Eswatini with a total trading area of 228,000 sqm.\r\n- Pep Clothing (PepClo) is the group\'s owned large manufacturing operation of basic apparel that provides products to PEP, Ackermans, Dunns and CODE. Employing 1,700 people, it produces most of Pep\'s schoolwear and has expanded to include underwear and flipflops.\r\n- Avenida - Brazilian value retailer with 183 stores, 2,700 employees, and a total trading area of 125,000 sqm.\r\n\r\n• Furniture, Appliances and Electronics includes Pepkor Lifestyle, previously known as JD Group, completed it rebrand during the 2024 financial year and opened 54 new stores now totaling 906 stores with 5,700 employees across South Africa, Botswana, Namibia, and Eswatini, with a total trading area of 395,000 sqm, as of 30 September 2024:\r\nPepkor Lifestyle Brands include:\r\n- Home - Russells, Bradlows, Rochester and Sleepmasters with a total of 763 stores with a total trading area of 312,000 sqm\r\n- Tech - Incredible and HiFi Corp with a total of 143 stored with a total trading area of 83,000 sqm\r\n\r\n• FinTech: \r\nFinancial 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:\r\n- Credit: Tenacity supports the Ackermans, PEP and Pepkor Speciality CGM brands in terms of interoperable credit sales across brands through store cards to customers.\r\n- Connect: Provides credit through instalment sale receivables to the furniture, appliances and electronics brands. \r\n- Lending: Capfin provides unsecured credit to customers under the Capfin brand and has 170,000 current loans.\r\n- Insurance: Abacus provides insurance products via its subsidiaries to customers of the group.\r\nFinTech brands include A+. Connect, Foneyam, Capfin and Abacus.\r\n\r\n• Informal Market\r\nThis 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.