Clicks bets $31M to take control of Africa's biggest beauty retailer ARC
What's the deal? Clicks GroupDealroom has a profile for this one. Try Dealroom → has raised its stake in premium beauty retailer ARC StoreDealroom has a profile for this one. Try Dealroom → to 61%, buying a further 35.3% interest for R507 million (roughly $31 million) from founding shareholders. The acquisition, announced in September 2026, gives the South African retailer a controlling position in ARC.
What's the endgame? Founded in 2020, ARC runs 12 stores in major malls, plus an online presence — its Sandton City outlet is the largest beauty store in Africa. It plans to grow to between 20 and 30 stores over the medium term.
Why now? The deal extends a relationship that began in 2021, when Clicks first bought into ARC. That stake rose to 25.7% in 2025 before this latest step to majority control.
The move deepens Clicks's exposure to South Africa's premium beauty market, valued at more than R6 billion annually. ARC sells a curated portfolio of international prestige brands across fragrance, skincare, makeup, haircare, and bath and body.
What changes? Existing ARC shareholders stay invested, and current executive management has committed to the business until at least 2028. "Our increased shareholding gives Clicks greater ability to participate in ARC's future growth while retaining the founders and management who built the business," said Bertina Engelbrecht, chief executive officer of Clicks Group.
The two businesses are already intertwined. ARC has been a Clicks ClubCard affinity partner since 2021, and Clicks stores serve as collection points for ARC's click-and-collect service. In the past year, ARC customer spend at Clicks rose 16% to R836 million.
ARC chief executive officer Jamie Lane said the company's "entrepreneurial, customer-focused, innovative and brand-led" culture "is fundamental to achieving its ambitious goals."
What could go wrong? The transaction is subject to competition authority approval, with the effective date set for the first day of the month following clearance.
The signal: Mainstream retailers are moving up the value chain, buying specialist premium players rather than building them. For Clicks, a controlling stake in a fast-growing prestige beauty brand is a bet on where South African spending is heading.
Read more: techfinancials.co.za
Image credit: Generated with Gemini
