Business model
Capital resources and relationships applied in the group’s business activities to create value for stakeholders.
(measured at the end of the 2023 financial year)
Financial capital

The financial resources received from providers of capital and deployed by the group

  • Equity of R6.0 billion
  • Cash resources R2.5 billion
  • Borrowing facilities R2.6 billion
  • Working capital outflow of R673 million



Manufactured capital

The infrastructure used in the selling and distribution of merchandise, including stores, pharmacies, distribution centres, the group’s head office and online store

  • 950 stores trading in five countries
  • E-commerce capability
  • 711 pharmacies
  • 203 clinics
  • 8 distribution centres located in five major provinces




Human capital

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

  • 18 447 permanent employees
  • 95% black and 63% female employees
  • Extensive investment in training and development
  • Company-funded healthcare cover available to all employees



Intellectual capital

The collective knowledge and expertise across the business as well as the intellectual property of the group which provide a competitive advantage

  • Brand equity in well established and market leading brands Clicks, The Body Shop, Sorbet and UPD
  • Extensive range of private label products
  • Clicks ClubCard is one of South Africa’s largest loyalty programmes


Social and relationship capital

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

  • 10.4 million Clicks ClubCard loyalty members
  • New Clicks Foundation funds of R152 million
  • Community support through social investment programme and Helping Hands Trust
  • Listing portal for small and medium-sized suppliers
  • Small enterprise owner driver scheme contracted to UPD






Natural capital

Environmental resources applied and utilised in the business. The group’s operations have a low environmental impact and therefore use limited natural capital

  • Sustainable materials used in products and packaging
  • Group-wide recycling programme
  • R78.5 million invested in alternative energy




Our operating model
Clicks Group’s strategy is realised through a value-adding retail-led business model which appeals to the group’s predominantly female customer base.

Customer care

Customer care from engaging and knowledgeable staff in the front shop and pharmacy.


Consistently good value-for money products delivered through competitive prices and effective promotions.


An extensive store footprint and pharmacy network in convenient locations allows for easy access to customers, supported by an online store and national pharmacy delivery service.


The product offering is differentiated through a wide range of private label and exclusive brands. Private label scheduled medicine ranges offer customers choice for quality generic medicine at a lower price.


ClubCard enables Clicks to personalise engagement and communication with customers, supporting the aim of the loyalty programme to increase basket size and value, and frequency of shopping.

The group’s performance over the past year resulted in a net increase in the value of all capitals except for natural capital where value was eroded owing to the consumption of resources in the production, packaging, distribution and sale of merchandise.
Financial capital
  • Group adjusted diluted HEPS up 11.5%
  • Dividend of 679 cents per share
  • Return on equity 43.6%
  • Cash generated by operations R5.9 billion
  • R2.3 billion returned to shareholders in dividends and share buy-backs
  • Reinvested R930 million in capital expenditure
  • Invested R320 million in acquisitions

Manufactured capital
  • Opened 45 Clicks stores
  • Opened 38 pharmacies
  • 50% of customers live within 5.1 km of a Clicks pharmacy
  • 1.8 million social media followers

Human capital
  • R4.4 billion paid to employees
  • 4 273 employees trained
  • R135 million invested in employee training and development

Intellectual capital
  • Retail pharmacy market share 24.0%
  • Private pharmaceutical wholesale market share 28.0%
  • Constituent of FTSE/JSE Top 40 Index
  • Clicks private label sales account for 25.2% of total sales

Social and relationship capital
  • R689 million in cashback paid to ClubCard members
  • R969 million paid in taxes in all countries of operation
  • R35 billion paid to suppliers of goods and services, including landlords
  • R93 million invested in enterprise and supplier development programmes
  • R57 million paid to 22 small enterprise owner drivers contracted to UPD
  • R26.7 million invested in socio-economic development programmes
  • 78 bursaries awarded primarily to pharmacy students
  • Level 4 BBBEE rating
  • Constituent of FTSE4Good Index

Natural capital
  • Total carbon emissions 150 436 tonnes CO2
  • Waste recovered from recycling
    4.4 million kg
  • Produced 3 636MWh renewable energy


Material trade-offs of capitals

In delivering on the group’s strategic objectives, management aims to balance and optimise the trade-offs between capitals to ensure long-term growth and sustainability.

While the commitment to investing in manufactured, intellectual, human and social and relationship capital erode financial capital in the short term, the long-term benefits are reflected in the group’s industry leading financial and operating metrics and sustained shareholder value creation.

Limiting the environmental impact of the operations to reduce the rate at which natural capital is depleted has a significant impact on financial capital in the short to medium term but should deliver the desired long-term benefits as the group ultimately moves towards carbon neutrality.

Constraints on capitals

The key constraints encountered during the year were in relation to manufactured capital.

  • Load shedding due to electricity supply constraints has had a significant impact on turnover owing to shorter trading hours in shopping centres and disruption of shopping patterns. The group has invested more than R120.1 million in alternative power solutions over the past two years to limit the impact of electricity outages.
  • The weak economic environment and rising fuel, energy, food and borrowing costs have constrained consumer disposable income which has negatively affected discretionary retail spending.

The group has no financial capital constraints owing to the strong cash flows generated by the operations and access to borrowings. Should these financial resources prove insufficient, the group’s strong balance sheet will enable management to access further loan funding or raise capital through the issue of shares.

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