Integrated Annual Report 2017

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Clicks' value-creating business model

Clicks Logo
CLICKS’ strategy is to be the customer’s first choice health and beauty retailer

Integrated and centralised supply chain

UPD provides an integrated healthcare supply chain channel for Clicks, with national coverage and up to twice daily delivery

Centralised supply from distribution centres to all retail stores (achieved 96.7% centralised supply in 2017)

Information technology

Efficient and flexible bespoke and proprietary systems:

  • Planning, ordering and store ranging
  • Loyalty management
  • Healthcare management
  • Omni-channel management
  • Warehouse management

Motivated and skilled people

Values-driven culture with equitable reward and recognition mechanisms

Committed to training and development (invested R126 million in 2017)

Building pharmacy capacity through in-house Pharmacy Healthcare Academy and bursary programme

Creating value in 2017

In applying its business model the group uses various capital resources to optimise value creation for stakeholders. These stakeholders also contribute to value creation by providing resources: customers (provide revenue by buying products), shareholders (provide capital), employees (provide talents and skills) and suppliers (provide products and services).

Capitals of value creation

The Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) recommends reporting to shareholders on the six main capital resources that are applied in the creation of value. The group’s performance and activities relative to these six capitals are covered throughout the report. Management has chosen to adapt the IIRC capitals and apply terminology which is more commonly used in managing the business.

IIRC capitals Financial Manufactured Intellectual Human Social and
Clicks Group capitals Financial Infrastructure Intellectual People Stakeholders Environment
Capital resources used in creating value Value created in 2017

The financial resources raised and deployed by the company.


Profit after tax R1.3 billion

Total shareholder return 25.2%

R2.0 billion cash generated by operations

Return on equity 44.1%


The infrastructure network used in selling merchandise, including the retail store network, distribution facilities, online store and information technology systems.


Opened 111 Clicks stores; total retail stores 795

73 new Clicks pharmacies; total now 473

9 distribution centres across Clicks and UPD

R518 million capital investment


The collective knowledge and expertise across the business as well as the intellectual property of the group, including trademarks, the development and design of private label brands, customer segmentation and loyalty management.


Clicks gained market share in all product categories

Private label and exclusive brands 22% of health and beauty sales

Clicks independently rated as leading health and beauty retailer in SA

ClubCard loyalty membership increased to 7 million and accounts for 77.4% of Clicks sales

Clicks is price competitive with national retailers


The competency, capability and experience of the board, management and employees.


Directors and executive management develop and execute the strategy to create value for shareholders

14 673 permanent employees who provide customers with medicines, products and services

R126 million invested in employee skills development


Relationships with stakeholders influencing the business, primarily customers, suppliers, employees and shareholders.


Customers: Turnover R26.8 billion

R13.8 billion turnover from ClubCard members

R322 million cashback paid to ClubCard members

Employees: R2.8 billion paid to employees

Suppliers: R23.4 billion to suppliers of goods and services

Shareholders: R677 million returned to shareholders in dividends


The group’s operations have a low environmental impact.


Commitment to reduce carbon footprint and generate savings through energy and water efficiency

2 448 tons of recycling in supply chain

Refer to the creating value through good citizenship report