Clicks Group to take control of ARC Store in R507 million deal

Clicks Group is set to increase its stake in premium beauty retailer ARC Store to 61% after agreeing to acquire a further 35.3% interest from its founding shareholders for R507 million.

The proposed transaction will give Clicks a controlling stake in ARC, which currently operates 12 stores across South Africa and plans to expand to between 20 and 30 stores over the medium term.

The deal remains subject to approval by the competition authorities.

Clicks strengthens its position in premium beauty

Clicks Group first invested in ARC in 2021, increasing its shareholding to 25.7% in 2025.

The latest acquisition will take that stake to 61%, giving the group greater exposure to South Africa’s premium beauty market.

Bertina Engelbrecht, chief executive officer of Clicks Group, said the acquisition presents an opportunity for further growth.

“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 said the two businesses could build on their existing strengths.

“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.”

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ARC plans to expand its store footprint

Founded in 2020, ARC operates 12 stores in major shopping malls across South Africa, alongside its online retail offering.

Its Sandton City outlet is the largest beauty store in Africa.

The retailer specialises in premium beauty products, offering a curated selection of international prestige brands across fragrance, skincare, makeup, haircare, and bath and body.

ARC plans to grow its physical footprint to between 20 and 30 stores over the medium term.

The founding shareholders will remain invested in the business, while the current executive management has committed to staying until at least 2028.

Jamie Lane, chief executive officer of ARC, said maintaining the retailer’s identity will remain important as it expands.

“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. ”

Clicks ClubCard partnership supports customer growth

ARC has been an affinity partner of Clicks ClubCard since 2021.

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

Clicks stores also serve as collection points for ARC’s click-and-collect service, allowing customers to collect their online purchases through the Clicks network.

The arrangement further connects the two retailers and offers additional convenience for customers.

When will the Clicks and ARC deal take effect?

The transaction is subject to approval by the competition authorities.

If approved, the effective date is expected to be the first day of the month following that approval.

Clicks Group said the transaction is uncategorised under the JSE Listings Requirements and that the announcement was made voluntarily.

Until regulatory approval is granted, the proposed increase to a 61% shareholding has not taken effect.

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