MOVING UP THE CONSUMER CHAIN
Brait surprised the market again as it continued its spending spree, this time buying 90% of New Look in the UK for almost R15bn. This is hot on the heels of the Virgin Active deal that in itself was hot on the heels of the Pepkor/ Steinhoff deal. What the company has done with these three deals is move up the consumer chain as Pepkor was aimed at lower income, while the two new deals both aim at middle and upper income. But what they have also done is essentially shift from a local South African company to a much more international business. Sure, Virgin Active is mostly South Africa-based, but Steinhoff is increasingly European and New Look is UK based.