South Africa’s clothing, textile, footwear and leather industries have long been identified as engines for inclusive growth. However, rebuilding them requires more than sentiment. It takes structure, strategy and scale.

This is precisely the model Pepkor is working to embed. Through brand-led sourcing strategies and targeted enterprise investment, the group is steadily building local capability across its value chains while balancing operational efficiency with long-term economic value.

This work supports the goals of the Retail – Clothing, Textile, Footwear and Leather (R-CTFL) Master Plan, a national framework designed to revive South Africa’s manufacturing base.

While Pepkor’s implementation happens brand-by-brand, the results are increasingly visible at group level, with PEP alone sourcing approximately 20 million units locally per season, and a deliberate focus placed on high-volume, high-impact categories.

At Ackermans, local sourcing peaked at 54% in 2023, driven in part by the brand’s investment in building domestic footwear capability. A new partnership with Ibhayi Footwear in Gqeberha, supported by an additional R12 million enterprise development loan, has launched a factory led by black women founders, set to produce veldskoen and flip flops for the Ackermans summer range. From the outset, Ibhayi has embedded sustainable production principles, including plans to explore PVC-free material.

Meanwhile, PEP has focused its localisation efforts on babywear, a cornerstone category for the brand. In Port Shepstone, Kelmik, a newly established facility, now produces around 5 million units per season, including babygrows, vests and booties. The site has created over 240 permanent jobs, with a strong focus on women’s employment and skills development. The initiative is also helping to reposition PEP’s baby range with customers, who have noted improvements in quality in recent brand research.

Both initiatives reflect a deliberate investment in growing local manufacturing capability. Where local suppliers can deliver, Pepkor integrates them. Where they need support, the group invests. In FY25, Pepkor provided R138.1 million in enterprise development funding and spent R13.8 billion with black-owned SMEs, reinforcing that enterprise development isn’t just an ESG target, it’s a sourcing enabler.