Pepkor (PPH) – When Fashion and Value mix

With the overall SA population growing faster than 0-14 years age segment, we believe the change in demographics poses a risk to PPH’s main clothing brands. Ackermans’ strategy to increase its ladieswear market share comes with increased risk. While the focus remains on value products, some element of styling will have to be introduced, and with that, an increased exposure to fashion risk. Our Summer Range shows that price is not an issue at Ackermans, and we believe that styling likely has to be improved.