Country Road Group has entered an agreement to buy Australian menswear retailer Politix.
Country Road Group is owned by South African-based Woolworths, also owner of David Jones.
Politix operates 75 stores, including 31 concessions nationally.
The retailer reportedly achieved sales of $56 million in fiscal 2016.
Woolworths said the agreement is subject to certain conditions.
The sale could be the prequel to further acquisitions, with Woolworths confirming a strategy to build a strong and diversified portfolio of brands.