Clicks invests R1bn in store expansion

Clicks will invest R1.025bn this year, with just more than half the money allocated to opening new stores and pharmacies and store refurbishments. 

The retailer opened its 950th store in February and expanded its national pharmacy footprint to 740 locations. About 53% of the population live within 5km of a Clicks pharmacy, the company said. 

Clicks plans to open 45 to 55 stores and pharmacies during the full year. It is targeting a total of 1,200 stores.

The company reported a 13.2% increase in diluted headline earnings per share for the six months to February 2025, driven by market share gains in core health and beauty categories, stronger private label performance and improved margins.

Group turnover increased by 6.2% to R23.2bn, with retail turnover up 6.4% and distribution turnover growing by 7.6%. The group’s trading margin expanded by 60 basis points to 9.1%.

CEO Bertina Engelbrecht said the group’s performance in the weak consumer environment continued to demonstrate the resilience and defensive nature of its core product offering.

 “Clicks reported strong growth in the front shop health and pharmacy categories, with private label product sales increasing by 10.1% and making up 31.4% of front shop sales. Online sales grew by 23.0%, contributing 4.4% of total retail sales,” she said.

The company's ClubCard loyalty programme grew its active membership to 12.1-million, gaining more than one million new members in the past year. ClubCard members accounted for 82% of Clicks sales and received R438m in cashback rewards over the six months.

Engelbrecht expected the trading environment to remain constrained, with consumer spending likely to be affected by the VAT rate increase.

She said” “Global uncertainty and geopolitical risks could adversely affect the country’s macroeconomic outlook.”

Business Times