Pepkor merger could strengthen market dominance
Justicia Shipena
The Namibian Competition Commission (NaCC) says the Pepkor Holding merger with national clothing retailer Big Daddy Clothing will strengthen an already dominant market position.
The NaCC said it could also give the merging parties the ability to facilitate coordination.
On Tuesday, the commission announced the approval of 13 mergers, following a meeting held on 8 May 2025.
The first merger involves JD Financial Services Proprietary Limited acquiring the retail furniture segment of OK Bazaars Namibia Ltd, including the Furniture Debtors Book.
JD Financial Services, which operates across various sectors such as retail, fintech, and strategic services, has extended its reach into the household furniture and appliances market.
OK Bazaars, known for its OK Furniture and House and Home brands, also sells cellular products and household textiles.
The second transaction involves Pep Stores Namibia, a subsidiary of Pepkor Holdings, acquiring the national clothing retailer Big Daddy Clothing.
Pep Stores, which operates numerous well-known brands in Namibia, including Pep, Ackermans, and Tekkie Town, will take over Big Daddy Clothing, a family-owned business with 24 stores in the country.
Big Daddy is known for offering fashion apparel at affordable prices, primarily for adults, with a limited range for children.
”The Commission’s investigation found that the proposed mergers would strengthen a dominant position and provide the merging parties with the ability to facilitate coordination, as envisaged by Section 47(2) of the Competition Act,” stated Dina Gowases, the corporate communications practitioner at NaCC.
Gowases said they approved both transactions with specific conditions to mitigate potential anti-competitive effects.
She added that the conditions imposed on these mergers aim to uphold market fairness and safeguard the public interest.
“To ensure a competitive environment, we have imposed conditions such as commitments to support supplier relations and SMEs, prevent bundling of products, and prohibit merger-specific retrenchments,” Gowases explained.
She added that these measures aim to preserve competitive dynamics within Namibia’s retail and furniture sectors while fostering sectoral growth and innovation, despite the consolidation of market power in these transactions.
Pepkor Lifestyle would be purchasing 18 OK Furniture outlets and three House & Home stores from Shoprite.
Pepkor already operates 16 stores in Namibia under its home and tech category, including Sleepmasters, HiFi Corp, and Incredible Connection.
The approved deal will bring the total number of Pepkor’s furniture outlets in Namibia to 37.
