Clicks eyes further market share amid double-digit sales growth
By Karl Gernetzky - Oct 24th, 10:00
Medicine and beauty products retailer Clicks said it was successfully weathering an increasingly tough environment for consumers and would spend R718m on its stores over the next financial year in order to pursue additional market share.
Retail health and beauty sales rose 10.5% in its year to end-August, the group said, amid market-share growth across all its core product categories.
Clicks, which operates 704 stores and 545 pharmacies, increased its share of the retail pharmacy market one percentage point to 24.9%, saying it was well-positioned to extend these gains.
SA retailers have been battered by poor trading conditions, amid rising job losses and weak economic growth, which has made it difficult for companies to pass on costs to their customers.
Headline earnings per share, the widely watched measure of performance, rose 12.2% to 683.9c for the year ended August, thanks in part to its medicine distribution unit, United Pharmaceutical Distributors (UPD), winning new contracts.
UPD’s total managed turnover, which combines wholesale and bulk distribution, rose 17.6% to R21.1bn, with the business gaining four new distribution contracts during the year and growing its market share one percentage point to 27%.
Group operating profit increased 14.2% to R2.3bn, while cash generated by operations rose 19.5% to R2.9bn.
The group upped its total dividend 17.1% to 445c per share.
Clicks’s share price has outperformed its peers so far in 2019. rising about a quarter, compared to a 3% rise in the JSE’s food and drug retailers index. Analysts and the company have cited the defensive nature of health and beauty products, which generally fare well during economic downturns.
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.
Gearing FMCG manufacturing for the red season spike and maximising profits all year round
25/11/2019 - 11:03
As we enter the festive season, demand for Fast-Moving Consumer Goods (FMCG) increases rapidly, often leaving manufacturers scrambling to fulfill orders from their distribution channel. If demand cannot be met, then loss of revenue is inevitable. However, over-production is not an ideal solution either, as it can leave manufacturers sitting with unsold stock that costs money to store.