HomeChoice doubles down on showroom growth in bold retail strategy shift
The retail arm of HomeChoice is repositioning its business model toward stronger cash generation and higher-margin growth, following a strategic shift that saw the division tighten credit and expand its physical showroom footprint.
Source: www.crestashoppingcentre.co.za
Parent company Weaver Fintech Ltd reported that Homechoice Retail revenue grew 6% to R2bn for the year ended 31 December 2025, while trading profit increased 32%, despite a softer second half as the business deliberately reduced credit exposure.
The move forms part of a broader strategy to improve return on assets and position the retail division for double-digit operating margins in the coming years.
Showroom expansion drives customer growth
A key element of the retail transformation has been the rapid expansion of the showroom network, which grew from 37 locations in 2024 to 60 stores in 2025.
The expanded footprint helped drive 24% growth in showroom sales, with showrooms increasingly becoming a critical channel for customer engagement and acquisition.
Notably, 44% of new customers are now acquired through showrooms, up from 32% in 2024, highlighting the role of physical retail in supporting Homechoice’s evolving omnichannel strategy.
Chris de Wit, CEO of HomeChoice International, said the strategic adjustments were made to strengthen long-term profitability.
“This year we took deliberate steps to strengthen the quality and profitability of our retail business. While tighter credit impacted second-half growth, the shift positions us for healthier returns in 2026. Our expanded showroom network continues to drive strong customer acquisition and supports a more modern, customer-centric retail model.”
Strategic reset for a more asset-efficient model
As part of the transition toward a more cash-generative retail operation, the business recognised a R244m non-cash impairment to align the value of retail assets with the new strategy.
The repositioning reflects a wider transformation within the group as it increasingly prioritises its fast-growing fintech ecosystem, while maintaining a streamlined retail operation that focuses on customer experience and physical touchpoints.
With a stronger showroom network and more disciplined credit strategy, Homechoice Retail aims to improve profitability and operational efficiency as it enters the 2026 financial year.