The pharmacy and beauty firm listed on the JSE, Clicks Group Limited, has bolstered its position in South Africa’s luxury personal care market by acquiring a majority stake in the specialized beauty retailer ARC Store for R507 million.
In a Sens announcement made on Monday, Clicks disclosed that it has finalized an agreement to buy an additional 35.3% share from the founding shareholders of ARC, elevating its total shareholding from 25.7% to 61%.
This acquisition, which awaits approval from local competition authorities, marks an entry into a premium beauty market valued at more than R6 billion annually.
Clicks first collaborated with ARC in 2021 by obtaining a minority stake, which was subsequently increased to 25.7% in 2025.
As per the new agreement, the current founding shareholders will retain a 39% non-controlling interest, while ARC’s executive management team is committed to remaining with the company until at least 2028.
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Founded in 2020, ARC operates 12 retail outlets in notable shopping centers, including their flagship store in Sandton City, which is the largest standalone beauty shop in Africa, along with an online shopping platform.
The retailer features international luxury brands in categories such as skincare, makeup, fragrance, hair care, and bath and body products.
The group plans to significantly expand its physical presence in the medium term:
- Current footprint: 12 stores situated in major shopping malls.
- Medium-term target: Expansion to between 20 to 30 stores.
- Effective date: The first day of the month following approval from the Competition Commission.
Cross-selling and ecosystem integration
This acquisition strengthens the existing operational relationship between the two retail brands. Since 2021, ARC has served as an affinity partner within the Clicks ClubCard loyalty ecosystem.
Over the past year, retail spending at Clicks by registered ARC customers has surged by 16% to R836 million. Moreover, Clicks retail locations also function as pickup points for ARC’s online click-and-collect orders, boosting foot traffic and logistical synergy between the two platforms.
Detailing the reasoning behind acquiring majority control, Bertina Engelbrecht, CEO of Clicks Group, remarked: “Acquiring a controlling stake in ARC enables the group to better connect with the growing premium beauty market, currently valued at over R6 billion annually.”
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Engelbrecht also commented on the partnership model: “ARC has established a distinctive position in the premium beauty segment, and we see significant opportunity to advance the business by utilizing the strengths of both ARC and Clicks.
“Our enhanced ownership stake enables Clicks to engage more effectively in ARC’s future growth while ensuring that the founders and management team, who built the business, remain involved.”
Jamie Lane, CEO of ARC, discussed the importance of maintaining operational continuity and business culture during the expansion, stating: “ARC’s stakeholders and partners recognize that the unique ARC culture – entrepreneurial, customer-centric, innovative, and brand-focused – is crucial for achieving its ambitious goals. We have formed a partnership that guarantees this culture will continue to be central to the business as we enter this new phase of growth.”
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