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.
- 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.
- 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.
- 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.
- 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.