Group strategy and targets

Sub Heading 1

As a health and beauty retail and supply specialist, Clicks Group is uniquely positioned in the South African market.

Good growth prospects in the health and beauty markets, together with the strength and scale of the group’s brands, will allow the business to capitalise on organic growth opportunities to gain market share and ensure sustainable competitive advantage.

Organic growth is complemented by tactical acquisitions to accelerate growth in core markets. This includes acquiring independent pharmacies to attract additional pharmacists into Clicks and, where appropriate, to acquire and convert their premises into a Clicks store.

Sub Heading 2

The country’s healthcare market is expected to show sustainable long-term real growth owing to the increasing proportion of the population entering the private healthcare market. Currently close to 8.3 million South Africans are covered by medical aid schemes, with this figure having grown by 1.2 million since 2006 (source: Council for Medical Schemes). The remaining 41.7 million South Africans therefore pay their own medical expenses or are dependent on the state healthcare system. The government is currently considering ways of extending health cover to the majority of the population (refer to the Chief Executive’s Report for further detail on the proposed National Health Insurance scheme).