Pepkor Holdings Ltd., the largest clothing retailer in Africa, has experienced a surge in its stock price, reaching its highest point in three years. This increase in value can be attributed to the announcement of a dividend that exceeded analysts' expectations.

As part of its growth strategy, the company plans to open up to 300 new stores across its markets. In South Africa, where Pepkor primarily operates, there are indications of an improvement in consumer disposable income. This can be attributed to a decrease in food inflation and recent reforms in the retirement system, which have made it easier for people to access their savings. Furthermore, the reduction in power outages has contributed to economic growth and increased consumer confidence.

Despite previous delays at the country's ports, Pepkor has managed to maintain better stock levels.