Pepkor Holdings Limited has announced it will shut down its entire Shoe City chain, affecting more than 114 stores across Africa, including outlets in Namibia.
Chief Operating Officer Sean N. Cardinaal said the company decided to exit the business after repeated efforts to revive the brand failed to deliver growth.
“We really have come to the conclusion that this specific format and this specific brand doesn’t show significant upside potential for us in terms of growth going forward. And in order to keep the team focused, we’ve decided to close this business. It’s about 114 stores,” Cardinaal said.
Stores in Windhoek, Walvis Bay, Swakopmund and Ondangwa are expected to close or be converted into other Pepkor formats as leases expire. According to Cardinaal, staff will be absorbed into other brands within the group.
“Fifty out of those stores will be converted into other group formats and the balance will close as they come to the end of their leases. All of the staff have been accommodated in other Pepkor brands,” he said, adding that the group aims to exit the business by the end of January next year.
Pepkor CFO Riaan Hanekom said the chain’s underperformance has weighed down the company’s Specialty division, despite efforts to reposition it. He also noted that currency fluctuations in African markets contributed to weaker overall performance.
“Specialty, unfortunately, went down because of Ayana and Shoe City. Africa dropped slightly because of the impact of Forex,” Hanekom said.
