Clicks Group has strengthened its position in South Africa’s premium beauty sector by acquiring an additional 35.3% stake in ARC Store (ARC) for R507 million, taking its total shareholding in the retailer to 61%.

The transaction involves the purchase of shares from ARC’s founding shareholders and expands a partnership that began in 2021, when Clicks first invested in the business. Its interest increased to 25.7% in 2025.

The acquisition gives Clicks greater exposure to South Africa’s premium beauty market, which is estimated to be worth more than R6 billion annually.

Existing ARC shareholders will retain their investments, while the retailer’s current executive management team has agreed to remain in place until at least 2028. This arrangement is intended to maintain leadership continuity and align shareholders as the business pursues further growth.

Established in 2020, ARC operates 12 stores in major shopping centres across South Africa, supported by an established online business. Its Sandton City store is the largest beauty retail outlet in Africa.

The retailer intends to expand its physical footprint to between 20 and 30 stores over the medium term.

ARC specialises in premium beauty products, offering a carefully selected range of international prestige brands covering fragrances, skincare, cosmetics, haircare, and bath and body products.

ARC chief executive officer Jamie Lane said the business’s entrepreneurial, customer-focused and innovative culture would remain central to its growth plans.

He said shareholders and partners recognised the importance of preserving ARC’s distinctive, brand-led approach as the retailer entered its next stage of expansion.

Clicks Group chief executive officer Bertina Engelbrecht said the increased investment would strengthen the group’s participation in the expanding premium beauty market.

She noted that ARC had developed a distinctive position in the sector, creating opportunities to grow the business while combining the capabilities of both retailers.

Engelbrecht added that the larger shareholding would allow Clicks to benefit more directly from ARC’s future expansion while retaining the founders and management team responsible for building the business.

ARC has also been a Clicks ClubCard affinity partner since 2021, creating opportunities for cooperation between the two retailers.

During the past year, spending at Clicks by ARC customers increased by 16% to R836 million.

Clicks stores also serve as collection locations for ARC’s click-and-collect service, strengthening integration between the businesses and offering customers additional convenience.

The transaction remains subject to approval by the competition authorities. Clicks expects it to become effective on the first day of the month following regulatory approval.

The group confirmed that the deal is classified as uncategorised under the JSE Listings Requirements and that the announcement was made voluntarily.

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