Group strategy
Clicks Group’s strategy is to create sustainable long-term shareholder value through a retail-led health, beauty and wellness offering.
GROUP Strategic objectives
- Grow the retail footprint by expanding the store base and online presence.
- Accelerate pharmacy market share gains in South Africa.
- Promote UPD’s national pharmaceutical wholesale and distribution services to grow market share.
- Deliver operational excellence with an efficient centralised supply chain.
- Create an inclusive and transformed organisation with a strong talent pipeline to support business growth.
Clicks vision
To be the leading health and beauty retailer in
targeted markets within southern Africa.
STRATEGIC DRIVERS OF LONGER-TERM GROWTH
The following strategic drivers of longer-term organic growth should ensure continued competitive advantage in the health and beauty markets in which the group operates.
Favourable market dynamics
- Healthcare markets are defensive and offer long-term growth opportunities in South Africa.
- The increasing use of generic medicines will continue to make healthcare more affordable.
- Improving living standards, increasing urbanisation and longer life expectancy is contributing to a growing market for health and beauty products.
Convenience
- Goal to expand the Clicks store base in South Africa to 900 in the long term, with a pharmacy operating in every store.
- Goal to achieve retail pharmacy market share of 30% in the long term.
- The online store and a national pharmacy delivery service model increases customer convenience.
Differentiation
- Private label and exclusive brands offer differentiated ranges at higher margins.
- Clicks is a brand that consumers trust and the brand has demonstrated its ability to transcend product categories and markets.
- Exclusive franchise brands The Body Shop, Claire’s, GNC and Sorbet augment Clicks’ private label brands in the health and beauty categories.
Personalisation
- 8.6 million active members makes Clicks ClubCard one of the largest retail loyalty programmes in South Africa.
- Migrating these ClubCard members onto the Clicks app enables personalised communication and offers.
- Influence customer behaviour and personalise communication through digital engagement via the ClubCard, website, online store and mobile app.
- ClubCard offers customers attractive and convenient cashback rewards and an increasing range of affinity partner benefits.
Growth opportunities for UPD
- UPD provides an efficient healthcare supply chain which supports the growth of the Clicks business.
- UPD offers national wholesale services to private hospitals and independent pharmacy, including Link pharmacies.
- The business offers a distribution service to local and international pharmaceutical manufacturers based on price, quality control and speed to market.
- UPD has targeted a 35% share of the fine wholesale and bulk distribution markets.
