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Pepkor moves into Nigeria | iFashion

BY Sikonathi Mantshantsha for Bloomberg , Monday, 15 Aug 2011 Add Comment Share Share Print Email

PEPKOR MOVES INTO NIGERIA

South Africa`s biggest clothing company, Pepkor Ltd., plans to expand into Nigeria as retailers including Wal-Mart Stores Inc. (WMT) fight for a share of some of the world`s fastest growing retail markets. Africa is awakening, Pepkor Chairman Christo Wiese said in an interview in Cape Town on Aug. 10. Its a huge market of almost a billion people with huge resources and a young population. People spend when theyre young. Pepkor, which targets low-income earners, plans to open its first Nigerian store this year and may invest as much as 100 million rand ($14 million) in the first stage of its expansion, which may see about 50 outlets opened in Africas most populous nation, the billionaire said. Pepkors expansion mirrors the growth strategy of other international retailers, including Wal-Mart, which bought a controlling stake in South Africas Massmart Holdings Ltd. (MSM) to gain a foothold on the continent. The 16.5 billion-rand purchase gave Bentonville, Arkansas-based Wal-Mart 51 percent of the largest wholesaler in South Africa, which also has operations in 12 other African nations. Wiese, whose net worth is an estimated $1.6 billion according to Forbes Magazine, controls Shoprite Holdings Ltd. (SHP), Africas largest grocer, and holds more than a third of Brait SA (BAT), the biggest South African private equity company. Faster African Growth The 69-year-old is betting economies in Africa will expand faster than the U.S. and Europe. The entry into Africa of Wal- Mart, the worlds largest retailer, hasnt changed Wieses plans, he said. Theres enough for everybody. Its a growing market. Pepkor will ride on the coat tails of Shoprite, which has 76 supermarkets in 15 African countries outside of South Africa. Pepkor will then expand in nodes across the continent, as it adds to its 2,800 stores in southern Africa, which include the Pep, Ackermans and Best & Less brands. Pepkors expansion follows a June reorganization of the retailers shareholding, which Wiese and Johannesburgbased Brait used to increase their stakes in the 46-year-old company. Pepkors shareholders can now take a long-term view and dont have the pressure of having to close their investment in the company, he said. Not For Sale The synergistic benefits between Pepkor and Shoprite also makes it unlikely Shoprite will be sold, Wiese said. As it stands, our business is not for sale, he said. Wieses son, Jacob, 30, is already involved in his businesses while his two daughters will probably retain ownership of his companies when he retires. Its a family business, he said. I believe I am good for another five to seven years. Wieses Tradehold Ltd. (TDH), which owns property and retail assets in the U.K., will make acquisitions within the next year outside of its existing businesses, he said, declining to be more specific. Tradehold has been my stepchild, he said. Weve been fighting fires there and most of these have been dealt with. Any acquisitions would be the first step in making sure Tradehold has more firepower, Wiese said.
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13/2/22

Pepkor moves into Nigeria | iFashion

The son of a farmer and gas station owner in Upington in South Africas Northern Cape, Wiese will also push the African expansion of Invicta Holdings Ltd., a distributor of bearings, seals and agricultural machinery.

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