South African retailer building a bank for less than R1 billion

Pepkor said its new banking proposition is on track and within target, with the retail giant set to roll out PlusB in the second half of its 2027 financial year.

The retailer said the total build cost for the bank remains on track to be below R1 billion.

This was revealed in a trading update that Pepkor released on Monday, 14 September, covering the ten months ended 31 July 2026.

This period represents the first 10 months of Pepkor’s 2026 financial year, during which the retailer performed strongly.

It experienced an 11.9% increase in revenue and 9.8% growth in sales, or 5.2% when excluding acquisitions.

Despite a challenging consumer environment, characterised by lower spending on clothing, footwear, home, and beauty categories, Pepkor gained market share.

The retailer said this strong performance was led by its PEP brand, the group’s discount leader, while other brands, including Ackermans, came under pressure.

Pepkor also provided an update on its banking offering in this update. The retailer first announced plans to launch its own bank in 2025.

This move made sense for the retailer, which had been steadily building out its financial services segment over the past few years.

The group plans to build its bank, called PlusB, from its +more loyalty and data programme, which was launched in 2024.

Pepkor’s update revealed that its +more customer value platform reached 18 million members by the end of July 2026.

This extensive customer reach and Pepkor’s substantial 6,677-store footprint will set the retailer up well to launch banking services.

Pepkor previously announced plans to launch its bank in April 2027, aiming to attract 1.8 million primary banking customers within five years. 

In its trading update on 14 September, Pepkor announced that these plans are still on track.

“PlusB is expected to launch in the second half of FY27, subject to regulatory approvals. The total build cost remains on track to be below R1 billion and within target,” the retailer said.

To prepare for this launch, Pepkor has also been curtailing credit extension in its Capfin business.

The retailer plans to reduce the Capfin book, focusing on growing credit through PlusB in the future.