- Privately owned retail Group, Retailability, has sold Legit, Swagga, Style and Boardmans to Pepkor.
- Edgars, Edgars Beauty, Red Square, Kelso and Keedo are not part of the deal and will continue to be operated by Retailability.
- The transaction remains subject to standard regulatory and commercial suspensive conditions.
Retailability Limited, a private owned retail group that specialises in affordable apparel and lifestyle products has entered into a transaction agreement with Pepkor who are seeking to expand their market share in adult wear.
The transaction includes 462 stores that operate across South Africa, Botswana, Lesotho, Namibia and Eswatini.
“This is a great deal for both parties,” say Norman Drieselmann, Retailability CEO, “while Pepkor gains solid brands to grow their position in adult wear, Retailability is able to increase its investment into Edgars.”
The Edgars, Edgars Beauty, Red Square, Kelso and Keedo businesses are excluded from the R1,9billion transaction and remain in the Retailability stable.
“The benefits of the sale will become evident as we begin to apply the next phase of our growth strategy into the Edgars brand,” says Drieselmann.
Retailability acquired Edgars from the Edcon Group in 2020 after it went into business rescue and currently operates 115 Edgars Stores and 20 stand-alone Edgars Beauty stores in five countries. In addition, Retailability operates 15 Keedo and two recently launched Kelso stores in South Africa.
Kelso, a ladies’ fashion specialty, is formatted to launch into South Africa to meet the needs of women who want both fashion and value in their wardrobes. This format is a growth vehicle for Retailability over the next five years.
The final phase of Edgars’ fashion turnaround strategy centres on growing the private label value offering and right sizing the store box footprints. An estimated 48 000m2 will be handed back to Landlords over 2025.
“The right sizing strategy will cement the turnaround of this brand and restore its underlying business model” says Norman Drieselmann.
Our Edgars beauty business continues to grow and maintain its dominant position in the prestige and luxury segments, with 6 standalone beauty stores having been opened in 2024 reinforcing the fact that beauty remains synonymous with Edgars.
