Clicks is strengthening its foothold in South Africa’s premium beauty market after agreeing to take control of specialist retailer ARC in a deal worth about R507 million, Cape {town} Etc reports.
Reportedly, the pharmacy and retail group announced on Monday, 28 September, that it had agreed to buy an additional 35.3% of ARC from the beauty retailer’s founding shareholders. This will take Clicks’ total interest in ARC from 25.7% to 61%, giving the group a controlling stake.
The transaction still needs approval from the competition authorities, with Clicks expecting the deal to become effective on the first day of the month after the necessary approval is granted.
ARC has built a name for itself in South Africa’s luxury beauty space since launching in 2020. The retailer currently has 12 stores in major shopping centres, including Menlyn Park and Sandton City, as well as an online business.
The Sandton City store has been described as the largest standalone beauty store on the African continent, while ARC has set its sights on growing its physical footprint to between 20 and 30 stores over the medium term. The business stocks international brands across categories including skincare, makeup, fragrance, haircare and bath and body products.
For Clicks, the attraction is clear: the premium beauty market is worth more than R6 billion a year, according to the group.
‘The acquisition of a controlling stake in ARC provides the group with increased exposure to the growing premium beauty market.’
– Bertina Engelbrecht, Clicks CEO.
Engelbrecht reportedly added that ARC had established a distinctive position in the sector and that there was an opportunity to combine the strengths of the two businesses.
Clicks first teamed up with ARC in 2021 through its ClubCard loyalty programme, allowing Clicks customers to earn rewards when shopping at ARC. Clicks stores have also been used as collection points for ARC’s online orders, creating a link between the two retail networks.
This relationship has grown beyond loyalty rewards. Over the past year, spending at Clicks by registered ARC customers increased by 16% to R836 million. The latest deal gives Clicks a much greater financial interest in ARC while allowing the founders to retain a 39% stake.
ARC’s existing executive management team will also remain in place until at least 2028, providing continuity as the retailer expands.
ARC plans to keep its identity
For ARC, the change in ownership emphasises retaining the character that helped establish the brand. CEO Jamie Lane said the company’s entrepreneurial and customer-focused approach would remain important as it enters its next stage of growth.
‘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.’
– Jamie Lane, CEO of ARC
The arrangement means Clicks will have greater control over ARC’s future direction, while the founders and management remain involved in the business. This balance could become increasingly important as ARC moves from its current 12-store footprint towards its 20-to-30-store target.
Part of a broader Clicks expansion
The ARC transaction also fits into a wider expansion drive by Clicks. During the group’s 2026 financial year, Clicks allocated R662 million in capital expenditure towards opening up to 50 new Clicks stores and pharmacies, alongside as many as 90 refurbishments.
Taking control of ARC gives the group another route into the beauty market without building a premium beauty chain from scratch. For shoppers, the most visible change is likely to come through ARC’s planned expansion and the continued integration between the two businesses.
For now, however, the R507 million transaction remains subject to regulatory approval before Clicks officially takes control.
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