Retail Giant Pepkor Acquires Brazilian-Based Clothing Retailer Grupo Avenida
Retail Giant Pepkor Acquires Brazilian-Based Clothing Retailer Grupo Avenida. South African retail Giant Pepkor has announced that it has acquired a majority stake in the Brazilian based clothing retailer Grupo Avenida.
Representing less than 4% of Pepkor’s market capitalisation, the transaction enables Southern Africa’s largest retailer by store footprint to partner with Avenida’s founder-led management team in Brazil to unlock significant growth in the largest Economy in Latin America.
Pepkor’s CEO, Leon Lourens said in a statement, “We are excited about this new chapter for Pepkor to enter a new geography with enormous growth potential. Pepkor has proven to be successful in the international expansion of its business model in the past and we look forward to entering the Brazilian retail market in partnership with the Avenida management team. The combination of Avenida and Pepkor brings together the required capital, retail synergies and the collective know-how to bolster Avenida’s growth in years to come. I believe that together we will be able to build and grow Avenida to become a giant in Brazilian value retail.”
Established 42 years ago and today with 2475 employees, Avenida is a one-stop apparel solution for value-seeking Brazilian families. The retailer offers a diversified product mix across two brands, Lojas Avenida and Giovanna. With 130 stores covering 11 out of 26 states, Avenida has a market-leading position in the core Midwest and Northern regions of Brazil.
After more than two years of extensive research into emerging market opportunities and a thorough due diligence by management and various advisors, Avenida has been identified as a strong strategic fit. Pepkor has a proven ability to successfully replicate its discount and value business model within emerging markets, having previously owned Pepco in Central and Eastern European – this business grew from 13 stores to more than 3500 today.
