Cape Town – Clicks Group increased turnover by 5.4% to exceed R50 billion for the first time in an environment of constrained consumer spending and aggressive competitor discounting in the financial year to 31 August 2026.
Headline earnings per share increased by 4.4% to 1 422 cents while the total dividend rose by 4.4% to 925 cents per share. The group achieved an industry-leading return on equity of 48.7%.
Despite the challenging trading environment, the group remained highly cash generative, with cash inflows from operations totalling R6.3 billion. The group returned R3.4 billion to shareholders in dividends of R2.1 billion and share buybacks of R1.3 billion, while reinvesting almost R1.2 billion in capital projects.
Over the past two decades, the group has returned R25.7 billion to shareholders through dividends of R16.6 billion and share buybacks of R9.1 billion.
Chief executive Bertina Engelbrecht said Clicks continued to expand its retail footprint and achieved significant milestones with the opening of its 1 000th store and 800th pharmacy, following the opening a net 41 stores and 60 pharmacies during the year.
“More than half of South African households (54.2%) live within five kilometres of a Clicks store, highlighting the accessibility and convenience of our network. Clicks increased its retail pharmacy market share to 24.7% from 24.1% in the prior year,” she said.
The group’s pharmaceutical wholesaler, UPD, increased reported turnover by 9.2% through strong growth in preferred bulk distribution contracts. UPD also broadened its product offering through the acquisition of a medical consumables distributor.
The Clicks ClubCard loyalty programme grew active membership to 13.1 million, with members receiving R976 million in cashback rewards during the year. This brings total rewards paid to customers since the inception of the programme to R8.5 billion.
Engelbrecht said ClubCard benefits were enhanced with an additional 10% discount on a range of approximately 3 000 products, a joint campaign with Engen and First National Bank to help members mitigate rising fuel costs and the introduction of Standard Bank and ABSA as additional affinity partners.
In August 2026, the group launched KwaMakhi, a neighbourhood convenience brand targeting South Africa’s township market. The brand is being piloted in four stores and has a distinct retail identity, dedicated product range and private label offering. Engelbrecht said KwaMakhi means “at my neighbour’s place”, reflecting the neighourhood-focused format and positioning of the brand.
Following the financial year end, the group increased its shareholding in premium beauty retailer ARC Store to 61%, acquiring a further 35.3% interest for R507 million. The transaction remains subject to approval by the competition authorities.
“The acquisition of a controlling stake in ARC provides the group with increased exposure to the growing premium beauty market. We see significant potential to grow the business and leverage the strengths of both ARC and Clicks,” she said.
As part of its commitment to carbon neutrality, the group has secured a fleet of 30 heavy-duty electric trucks to support retail distribution. The Cape Town distribution centre now operates an entirely electric truck fleet, making it the first distribution facility in Africa to achieve this. The electric fleet is expected to deliver annual fuel savings of R20 million to R25 million.
On the trading outlook for the year ahead, Engelbrecht said the retail environment is expected to remain highly competitive, with sustained discounting as rising fuel prices and higher interest rates continue to constrain household spending.
Clicks plans to open 40 – 50 new stores in the 2027 financial year as it progresses towards its medium-term target of 1 200 stores. In addition, the group also plans to roll out 10 – 15 UniCare specialised pharmacies over the medium term and expand KwaMakhi in South Africa’s township market.
“Importantly, we will continue to leverage our investments in Sorbet, ARC Store, UniCare, KwaMakhi, medical consumables, the LEAP retail pharmacy system and our omni-channel capabilities to support growth and strengthen our market position,” she added.