In 1976 Pep added a selection of non-food
groceries in some of the Pep branches. For many years Renier has been eyeing
the grocery market as an avenue for expanding Pep’s sphere of influence and
with the success of fellow-Cape based food retailer, Raymond Ackerman’s Pick ‘n
Pay, groceries appeared to be the logical direction. There was an additional incentive for Pep to enter the grocery market - Pick ‘n
Pay had begun to compete directly against Pep by selling clothing and shoes in
its giant Hypermarkets. Initially, Pep focused only on a limited range of
toiletries and household requisites, but this represented the humble beginnings
of a full-scale entry later on into the food market and laid the foundations
for Pep acquisition of the food chain, Shoprite, in 1979.
In 1979 Renier appointed his financial
director, Whitey Basson, to diversify into the food sector. When an opportunity finally came up in May
1979 to establish a more substantial foothold in the grocery market, there was
no hesitation on Pep’s part in making an offer for a small food retailer called
Shoprite. Shoprite was a food and household retailer based with eight stores
located in the Western Cape. It was decided
to operate Shoprite as an independent concern and Whitey Basson, at this stage
eager to find a new challenge within the Pep group, was appointed managing
director and ably assisted by Rogut and Geller with their considerable
experience. With Whitey
Basson as MD, Renier had picked the right man for this job and Shoprite began
growing at a rapid rate. See also Shoprite Group
Together with the newly-appointed vice-chairman,
Christo Wiese, Renier continued to consolidate his shareholding in Pep. With a succession plan in place, in 1981 Renier announced his resignation as chairman of Pep
Stores.