Clicks to Expand Store and Pharmacy Network Across South Africa
Despite a tough consumer climate, Clicks Group has delivered solid interim results and plans to grow its national footprint with more stores and pharmacies across South Africa.
For the six months ending February 2025, the group reported a 13.2% rise in diluted headline earnings per share, driven by gains in market share across its health and beauty categories, improved margins, and stronger private label sales.
Group turnover rose by 6.2% to R23.2 billion, supported by retail turnover growth of 6.4% and a 7.6% increase in distribution turnover. Trading margin improved to 9.1%, up 60 basis points, while the interim dividend climbed 13.3% to 238 cents per share.
CEO Bertina Engelbrecht said the results highlight the resilience and defensive nature of Clicks’ core offering amid continued consumer pressure.
“Clicks reported strong growth in the front shop health and pharmacy categories, with private label product sales increasing by 10.1% and now making up 31.4% of front shop sales in Clicks. Online sales grew by 23.0%, contributing 4.4% of total retail sales,” said Engelbrecht.
Clicks Expands National Reach
Clicks celebrated the opening of its 950th store in February, while growing its pharmacy network to 740 locations across South Africa. Currently, over half of the country’s population — 53% — live within five kilometres of a Clicks pharmacy, underscoring the brand’s accessibility and convenience.
The retailer has ambitious expansion plans for the rest of the year, aiming to open between 45 and 55 new stores and pharmacies. It remains on track to meet its medium-term goal of operating 1,200 stores nationwide.
Clicks Clubcard Keeps Gaining Momentum
Clicks ClubCard, one of South Africa’s most recognisable loyalty programmes, continues to grow. Active membership has reached 12.1 million, with over one million new members joining in the past year alone.
ClubCard members remain highly engaged, contributing to 82% of total sales. During the six-month period, members received R438 million in cashback rewards — a reflection of the programme’s strong value proposition.
Looking ahead to the second half of the financial year, Engelbrecht said the trading environment will remain constrained, with consumer spending likely to be impacted by the VAT rate increase. “Ongoing global uncertainty and geopolitical risks could adversely affect the country’s macroeconomic outlook,” she said.
Capital investment of R1.025bn is planned for the full year, with 56% allocated to the opening of new stores and pharmacies, as well as store refurbishments.
“We remain confident in the group’s competitive advantage and market-leading positions in the health and beauty sectors, as well as the long-term organic growth opportunities in Clicks. We are forecasting an increase of 11% to 16% in diluted HEPS for the 2025 financial year,” Engelbrecht added.
Written by: Staff Writer.
Guzzle Media
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