THE CLICKS GROUP
Founded in 1968, the group has been listed on the JSE since 1996. Following change in South African legislation in 2003 to allow corporate pharmacy ownership, the group entered the retail pharmacy market with the opening of the first Clicks pharmacy in 2004. The group is today a leader in the healthcare market where Clicks is the country’s largest pharmacy chain with 473 in-store pharmacies and a 22.2% share of the retail pharmacy market. UPD has a 25.6% share of the private pharmaceutical wholesale market.
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.
Capacity to expand retail footprint and pharmacy network
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 (currently 22.2%). Primary care clinics in 195 Clicks stores support the health service offering. The retail footprint is complemented by an online store to increase customer convenience and Clicks Direct Medicines provides a national direct-to-patient courier service.
Differentiated product offer
Private label and exclusive brands offer differentiated ranges at higher margins. Clicks is a brand consumers trust implicitly and the brand has demonstrated its ability to transcend product categories and markets. The portfolio of exclusive franchise brands of The Body Shop, GNC, Sorbet and Claire’s augment Clicks’ private label brands in the health and beauty categories.
Ability to leverage customer loyalty
Clicks ClubCard is one of the largest retail loyalty programmes in South Africa with 7 million active members. ClubCard offers customers attractive cashback rewards and a range of affinity partner benefits. Clicks has extensive opportunities to utilise ClubCard data analytics and marketing capability to increase the customer basket size and value, and frequency of shopping.
Opportunity to grow 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 pharmacy, including Link pharmacies, as well as a distribution service to local and international pharmaceutical manufacturers based on price, quality control and speed to market. The growth opportunity for the business is supported by a goal of obtaining 30% shares of the fine wholesale and bulk distribution markets.
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CBD oil product launching countrywide in Clicks and Dis-Chem
15/10/2019 - 14:43
South Africa’s top health and beauty retailers, Clicks and Dis-Chem, are both rolling out the Elixinol range of CBD full-spectrum extract products in October.
Clicks riding high on growth profits
09/10/2019 - 09:32
Pharmaceutical health and beauty retailer Clicks rose to its highest level on the JSE after the group revised up its earlier guidance to investors, saying that it now expected double-digit growth in profits for the year to end August.
Foschini, Clicks offering good returns
10/06/2019 - 14:55
Prospects for retail sector companies on the JSE had withered this year in line with the slumping economy, but there were outliers, such as Foschini and Clicks, providing good returns for shareholders in the sector, analysts said.
Clicks says private-label products boosted interim earnings
17/04/2019 - 09:59
Clicks Group says it grew headline earnings by 12.9% to R763.3m in the six months to February thanks in part to better sales of its private-label products and higher profits from its distribution business.
Retailers cash in on customer loyalty
04/04/2019 - 08:15
More and more consumers are buying into the idea of loyalty programmes — and it’s paying off for retailers in terms of valuable information, as well as increased revenues.
Former Clicks boss David Kneale joins Woolworths
11/03/2019 - 10:06
Former Clicks CEO David Kneale, who helped the retail group break into the JSE’s top 40 index in 2018, has joined the Woolworths board.
Strike adds to Dis-Chem’s Christmas woes
14/02/2019 - 10:33
Dis-Chem’s Christmas sales have been hurt by a strike, the pharmacy chain warned in a trading update.
Value created for Clicks Group employees through share programme
08/02/2019 - 14:17
Over 7 800 of Clicks Group employees will share in a R1.5bn payment that has been created through the group's employee share ownership scheme (ESOP).
CEO David Kneale leaving Clicks in robust health
26/10/2018 - 09:17
Retiring Clicks CEO David Kneale says he is “going out on a high” and that the business has good growth prospects given that only half of SA’s population lives close to one of the group’s stores.
Dis-Chem plans to open more than one new store every month
17/10/2018 - 08:56
Pharmacy chain Dis-Chem plans to maintain its expansion pace of more than one store a month, it said in its interim results.