South Africa's MR Price Group is turning heads with a proposed R9.66-billion acquisition of Pegasus Group Holding (the German NKD's retail unit), a move that could materially reshape the retailer's footprint beyond local borders.
Announced in December 2025, the deal will incorporate NKD's 2 100+ stores across seven European markets (including Germany, Austria, Croatia, Slovenia, the Czech Republic, Poland and Italy) into Mr Price's growing portfolio.
The strategic logic, according to the Mr Price Group, is alignment in value retail DNA: smaller-formats stores, private-label focus and cost-conscious shoppers — hallmarks of a market that has held firm even amid economic headwinds.
This expansion accentuates how brand story and customer positioning matter as much as economics, especially when expanding into markets where existing brand equity is limited.
Successfully localising NKD's offering without reducing Mr Price's value proposition will require nuanced communication strategies, audience insights and sophisticated data use.
However, not everyone is convinced. Since the deal was announced, investor sell-offs have driven the company's share price down by 20% within a month.
Shareholders — including Benguela Global Fund Managers — have publicly questioned the deal's valuation governance and potential return, pushing regulatory bodies and even the Johannesburg Stock Exchange (JSE) to review how the acquisition was structured.
These critics argue that the transaction could erode shareholder value and saddle the business with low margins and added debt.
As Mr Price prepares an investor presentation in March (complete with a live webcast), the real interest for marketers now lies in execution.
Scaling a value brand across multiple European territories will require sharp decisions around pricing structure, promotional magnitude and channel diversity, particularly in markets where consumer expectations of "value" are shaped by local competitors and cultural norms.
Success will depend on how effectively customer data is used to refine messaging, test market-specific offers and track performance across retail and media environments.
Here, the ability to monitor how campaigns land across regions, and adjust quickly based on measurable outcomes, becomes a strategic advantage.
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**Information sourced from Rode Publications and Media, Daily Investor, Eyewitness News and Business Tech