Clothing company makes material gains

Pep operates more than 1,400 clothing stores in 10 southern African countries and employs more than 14,000 people. It will send 400-million products to more than 1,000 stores this year, with its trucks driving the equivalent of 225 times around the earth, and the group conducting 220 million customer transactions.

Africa GM Willie Jacobs says Pep Africa's strategy is to focus on opening stores in one country at a time. The group is already active in Zambia, Malawi, Mozambique and Angola. The first store on the continent opened in Lusaka in April 1995.

The other arm of the retailer, PepSA, has stores in SA, Botswana, Lesotho, Namibia and Swaziland.

Pep Africa employs 800 people in 96 stores, including 40 in Zambia, 23 in Malawi, 30 in Mozambique and three so far in Angola. The biggest challenges, Jacobs says, have been “to find suitable properties, the complicated logistics pipeline as well as exchange rate fluctuations”.

The company, which claims to be SA's biggest single brand store network, made its investment into Angola, the continent's fastest growing country, on 31 October last year. The first store was opened in Lobito and a 2000m² distribution centre was opened in Benguela, in western Angola, south of Luanda.

“We chose Benguela as the location for our DC as this is central to our store expansion programme and essential to our logistical needs,” said Jacobs.

Customers queued outside the store in Lobito in anticipation of its opening. The governor of Lobito, Armando Da Cruz Neto, attended the opening ceremony with Angola GM Gerrie Scheepers. Scheepers is fluent in Portuguese and was GM of PEP's Mozambique operation for five years.

A freestanding shoe store, Lobuto, also opened on the day next to the clothing store. A third store, Namibe, opened on 19 December, with reported “great results”. Pep aims to open more stores in Namibe, Benguela, Sumbe and Lubango by the end of the year.

Pep's Angolan operation will initially provide new jobs for 70 people. With the launch of its first store in Angola, Pep now operates in 11 southern African countries. Pep also has more than 1400 stores in SA, Botswana, Lesotho, Namibia, Swaziland and in Zimbabwe through Power sales.

Pep's entry into Angola was the result of extensive research over the past two years. The company is confident of growth and success in this new market. Jacobs says he believes the product offers value for money and functionality, and is right for the market. “According to our research, affordable clothing and products are the most important factors for Angolan customers.”

Pep is a subsidiary of Pepkor, a South African-based investment holding company with retail interests in Africa, Australia and Poland. The group manages a portfolio of retail chains, focused on the value market, that sell clothing, footwear and textiles.

Its main operating subsidiaries are Pep and Ackermans in SA and Best & Less in Australia.

Pep's history dates back to 1965 when it opened its first store in Upington. In 1972, it was listed on the JSE before delisting in 1999 as a different company with several retail holdings and restructuring again in 2000.

Source: Business Day

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