The deal lifts Clicks’ holding in the premium beauty retailer to 61%, with plans to expand its store network to as many as 30 outlets.
JSE-listed pharmacy and beauty group Clicks Group Limited has expanded its presence in South Africa’s high-end personal care market after taking majority control of specialist beauty retailer ARC Store for R507 million.
In a Sens announcement published on Monday, Clicks confirmed it has agreed to acquire a further 35.3% interest from ARC’s founding shareholders, raising its total equity stake from 25.7% to 61%.
The transaction, which remains subject to approval by local competition authorities, marks a move into a prestige beauty segment valued at over R6 billion annually.
Clicks first entered a relationship with ARC in 2021 by acquiring an initial minority stake, which it subsequently increased to 25.7% in 2025.
Under the terms of the latest transaction, the existing founding shareholders will retain a 39% non-controlling interest. At the same time, ARC’s executive management team has agreed to remain with the business until at least 2028.
Founded in 2020, ARC currently operates 12 retail locations across major shopping centres, including its flagship Sandton City outlet, the largest standalone beauty store on the African continent, alongside an e-commerce platform.
The retailer curates international luxury brands across skincare, makeup, fragrance, haircare, and bath and body.
The group plans to expand its physical footprint significantly over the medium term:
- Current footprint: 12 stores in major shopping malls nationwide.
- Medium-term target: Expansion to between 20 and 30 stores.
- Effective date: First day of the month following Competition Commission approval.
Cross-selling and ecosystem integration
The acquisition builds on an existing operational relationship between the two retail brands. ARC has participated as an affinity partner in the Clicks ClubCard loyalty ecosystem since 2021.
Over the past year, retail spend at Clicks by registered ARC customers expanded by 16% to R836 million. Furthermore, Clicks retail outlets serve as physical pickup locations for ARC’s online click-and-collect orders, driving foot traffic and logistical integration across both platforms.
Framing the rationale behind securing majority control, Bertina Engelbrecht, CEO of Clicks Group, stated:
“The acquisition of a controlling stake in ARC provides the group with increased exposure to the growing premium beauty market, which is currently valued at more than R6 billion annually.”
Engelbrecht added regarding the partnership model: “ARC has established a differentiated position in the premium beauty market, and we see potential to grow the business and to leverage the strengths of both ARC and Clicks.
“Our increased shareholding gives Clicks greater ability to participate in ARC’s future growth while retaining the founders and management who built the business.”
Commenting on operational continuity and business culture during the expansion phase, Jamie Lane, CEO of ARC, remarked:
“ARC’s shareholders and partners recognise that the unique ARC culture – entrepreneurial, customer-focused, innovative and brand-led is fundamental to achieving its ambitious goals. We have crafted a partnership where that culture will remain at the heart of the business as we enter this next phase of growth.”
Source: Moneyweb
