When Bertina Engelbrecht walked into ARC‘s flagship store in Sandton City, the continent’s largest beauty outlet, she was not just visiting a tenant. The next day Clicks announced that it now holds a controlling interest, meaning it owns more than half of the voting shares, in the boutique chain.
Clicks already held 25.7% of ARC. It has now paid roughly R507 million to buy a further 35.3 percentage points from the founders, taking its stake to 61% and giving it control of the boutique chain. The transaction was disclosed in a voluntary announcement on the Stock Exchange News Service on 28 September 2026.
According to Clicks, the move gives the group greater exposure to South Africa’s premium beauty market, a segment valued at over R6 billion a year. The company said ARC has a differentiated position in that market and that the combined strengths of both retailers could drive further growth.
The acquisition does not mean a clean break for ARC’s original owners. Clicks confirmed that the founding shareholders will stay invested and that the current executive team will remain in place until 2028, providing continuity of management and alignment of shareholder interests.
Clicks’ relationship with ARC dates back to 2021, when the two launched an affinity partnership through the Clicks ClubCard, well before Clicks built up its 25.7% equity stake. ClubCard holders earned rewards when shopping at ARC, and Clicks offered pickup points for ARC products. In the past year, spending by ARC customers in Clicks stores rose 16% to R836 million, showing cross-selling potential.
For the 2026 financial year Clicks earmarked R662 million for capital expenditure, targeting up to 50 new Clicks stores and pharmacies and up to 90 refurbishments. The ARC deal adds a new growth engine as the group looks to broaden its footprint beyond its traditional health-and-beauty format.
Regulatory hurdle
The purchase is still subject to approval by the Competition Commission. Clicks said the transaction should become effective on the first day of the month after the regulator signs off.
For small business owners watching the retail landscape, the deal signals that larger chains are seeking to capture higher-margin segments by partnering with or acquiring specialised retailers. While the premium beauty market offers attractive margins, it also brings competition from both international brands and local niche players.
More details can be found in the original Businesstech announcement. The transaction will also be listed on the Johannesburg Stock Exchange and must clear the Competition Commission.
Read more about similar moves in the Markets & Finance section.
BusinessTech reported that ARC was founded in 2020 and has grown to 12 stores in prominent South African malls, including Menlyn Park Shopping Centre and Sandton City. The retailer plans to increase its footprint to between 20 and 30 stores in the medium term, a move that aligns with Clicks’ ambition to broaden its presence beyond the traditional health-and-beauty format. By keeping the existing executive team in place until 2028, Clicks aims to preserve the brand’s differentiated positioning while leveraging its own distribution network to accelerate store roll-out across the country.
The Sandton City outlet, described in the original announcement as the largest beauty store in Africa, serves as a flagship for ARC’s premium offering. BusinessTech highlighted that the chain’s presence in high-traffic malls such as Menlyn Park provides visibility to affluent shoppers who are willing to spend on niche and international beauty brands. This strategic placement supports Clicks’ goal of tapping into the premium beauty market, which the company values at more than R6 billion annually.
Clicks’ purchase of the additional 35.3 percentage points for approximately R507 million was disclosed in a voluntary announcement on the Stock Exchange News Service on 28 September 2026. The transaction, now subject to Competition Commission approval, will become effective on the first day of the month after the regulator signs off, as stated by the company. This timing ensures that the deal complies with South African competition law while allowing Clicks to integrate ARC’s operations into its broader growth plan.
In South Africa, a share-purchase deal of this size typically follows a multi-step process: the buyer announces the intention, files a notice with the Competition Commission, and awaits clearance before the transaction can be consummated. The regulator examines whether the acquisition would substantially lessen competition in any relevant market, such as premium beauty retail. For business owners, understanding this timeline is vital because it determines when new strategic initiatives, like joint marketing or supply-chain synergies, can be launched without breaching antitrust rules.
Small and medium-sized retailers should watch for how Clicks leverages ARC’s brand to introduce cross-selling opportunities, especially through the ClubCard programme that already generated a 16 percent rise in ARC-customer spend to R836 million in Clicks stores. Future signals to monitor include any announcements of new ARC locations, changes to product assortments, or joint promotions that could reshape consumer buying patterns in the premium segment. Keeping an eye on the Competition Commission’s decision timeline will also help owners anticipate when market dynamics might shift.
