Group strategy

To create sustainable long-term shareholder value through a retail-led health, beauty and wellness offering.

Group strategic objectives
Increase customer appeal and access by expanding the store, pharmacy and online presence
Accelerate market share gains in pharmacy and core front shop categories
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
Ensure sustainability through efficient cash and capital management and entrench robust environmental, social and governance practices
Strategic drivers of longer-term growth
These 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.
  • 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.
  • Goal to expand the Clicks store base to over 1 200 in the long term, with a pharmacy operating in every store.
  • Clicks Baby standalone stores enable the group to capitalise on the growth in this strategic category.
  • Goal to achieve retail pharmacy market share of 30% in the long term.
  • Customer convenience is supported by an online store and a national pharmacy delivery service.
  • 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, GNC and Sorbet augment Clicks’ private label brands in the health and beauty categories.
  • Sorbet beauty salon chain further differentiates offering.
  • Clicks ClubCard is one of the largest retail loyalty programmes in South Africa, with 10.4 million active members.
  • ClubCard offers customers generous and convenient cashback rewards and an increasing range of affinity partner benefits.
  • Migrating ClubCard members onto the Clicks app supports the personalisation strategy.
  • Opportunity to influence customer behaviour and leverage personalised digital engagement via the ClubCard, website, online store and mobile app.
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 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.
  • Goal to achieve wholesale pharmaceutical market share of 35% and bulk distribution market share of 35%.