Group strategy

Clicks Group’s strategy is to create sustainable long-term shareholder value through a retail-led health, beauty and wellness offering.

These favourable strategic drivers of longer-term organic growth should ensure continued competitive advantage in the health and beauty markets in which the group operates.

Healthcare markets are defensive and offer long-term growth opportunities in South Africa.
Improving living standards, increasing urbanisation and longer life expectancy is contributing to a growing market for health and beauty products.
An increasing proportion of the population is entering the private healthcare market.
The increasing use of generic medicines will continue to make healthcare more affordable.

Investment case

The goal is to expand the Clicks store base in South Africa to 900 in the long term, with a pharmacy operating in every store.
The retail pharmacy market share goal is 30% in the long term.
The online store and a national pharmacy delivery service model increases customer convenience.

Investment case

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.

Investment case

Clicks ClubCard is one of the largest retail loyalty programmes in South Africa with 8.1 million active members.
Migrating existing and new ClubCard members onto the Clicks app enables personalised communication and offers.
Extensive opportunities to leverage digital engagement through the Clicks ClubCard, website, online store and the Clicks app to personalise communication and influence customer behaviour.
ClubCard offers customers attractive and convenient cashback rewards and an increasing range of affinity partner benefits.

Investment case

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 pharmacies, 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 the capacity to target a 30% share of the fine wholesale and bulk distribution markets.

Investment case