Furniture retailer Lewis Group will take over 62 stores from Ellerines and Beares in southern Africa. At an estimated expense of about R250m, the acquisition is believed to aid Lewis group in diversifying and magnifying its operations in the region. Lewis will now have a total of 786 stores in Africa. The newly acquired stores are located in Botswana (25 stores), Namibia (21), Lesotho (10) and Swaziland (6).
Lewis CEO Johan Enslin told reporters that the company would look out to magnify its customer base in the aforementioned countries where Ellerines and Beares have created a long and established furniture business platform with its stores.
He added that being the first South African retailer to expand to its neighboring frontiers in the late 1960s, Lewis see this opportunity to further reach out the countries where there are more potential. Lewis as of now has 62 stores in these four countries, which make around 20% of the company’s profit. “We trust Beares is a versatile brand with extraordinary advancement prospects. The acquiring of the Beares business in South Africa from Ellerines in 2014 has allowed to attract customers in higher revenue sects,” he said.
Lewis Group reported its results for the six months to end-September 2015, with market sales increasing by 8.8%. Enslin said the operating is getting continuously troublesome in August and September from the impact of the subsiding economy and the company’s choice to implement the National Credit Regulator’s (NCR’s) affordability evaluation regulations in July.
The group’s benefit for the six months plunged by R44.5m to R286.6m, with debilitated earning wage per share 12.8% lower at R3.21. Lifted measures of commitment among Lewis’ target business segment added to the credit application-diminishing rate staying high at 41%. Obligated individual expenses as a rate of net record holders moved from 6.8% to 7.4%. In the point of view for whatever is left of the budgetary year, Enslin said current antagonistic trading conditions are not expected that would upgrade in the short term.