Clicks is taking control of South Africa’s premium beauty market with a R507 million ($30.88 million) deal to become the majority shareholder in beauty retailer ARC.

The retailer increased its stake in ARC by 35.3 percentage points to 61%, giving it control of a business that has built a 12-store network across some of South Africa’s most prominent shopping malls.

Clicks announced the transaction in a voluntary announcement on the Stock Exchange News Service on Sept. 28, 2026. The additional stake was acquired from ARC’s founding shareholders, while existing shareholders will remain invested in the business.

The transaction is still subject to regulatory approval, with Clicks expecting it to take effect on the first day of the month after competition authorities approve the deal.

Clicks targets premium beauty

The acquisition gives Clicks greater exposure to South Africa’s premium beauty market, which the retailer values at more than R6 billion ($365.66 million) a year.

ARC was founded in 2020 and has expanded to 12 stores, including outlets at Menlyn Park Shopping Centre and Sandton City. Its Sandton City store is currently the largest beauty store in Africa.

ARC plans to increase its footprint to between 20 and 30 stores in the medium term, giving Clicks an opportunity to participate directly in the retailer’s planned expansion.

“The acquisition of a controlling stake in ARC provides the group with increased exposure to the growing premium beauty market,” Clicks CEO Bertina Engelbrecht said.

Engelbrecht said ARC had established a differentiated position in the premium beauty market, while Clicks sees opportunities to combine the strengths of both businesses.

Partnership already driving sales

Clicks and ARC have worked together since 2021, when they established an affinity partnership through Clicks ClubCard. The arrangement allows ClubCard members to earn rewards when shopping at ARC stores, while Clicks also provides pickup points for ARC customers.

The relationship has already generated significant customer spending for Clicks. In the past year, spending by ARC customers at Clicks stores rose 16% to R836 million ($50.94 million).

Management continuity will also remain in place following the transaction. ARC’s current executive team is expected to stay with the company through 2028, while Clicks said the existing shareholder base will continue to have an investment in the business.

The ARC deal comes as Clicks continues investing in its broader South African retail network. For its 2026 financial year, the group allocated R662 million ($40.33 million) in capital expenditure for up to 50 new Clicks stores and pharmacies, alongside as many as 90 refurbishments.

Clicks said the ARC transaction will provide continuity of management and shareholder alignment as the beauty retailer expands.