Business 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. The execution of this business model will create value for the group’s stakeholders, including shareholders and lending institutions, customers, employees, suppliers and regulators.
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capital
- Equity of R6.9 billion
- Cash resources R3.3 billion
- Borrowing facilities R2.6 billion
- Working capital inflow of R73 million
Shareholders
Regulators
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capital
- 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
Employees
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relationship capital
- 12.6 million Clicks ClubCard loyalty members
- New Clicks Foundation funds of R191 million
- Community support through social investment programme and Clicks Helping Hands Trust
- Listing portal for small and medium-sized suppliers
- Small enterprise owner driver scheme contracted to UPD
Shareholders
Customers
Employees
Suppliers
Regulators
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capital
- 1 250 stores* trading in five countries
- E-commerce capability
- 780 pharmacies**
- 225 clinics
- 8 distribution centres located in five major provinces
* Includes 190 Sorbet franchised beauty salons.
** Includes 1 UniCare store.
Customers
Suppliers
Employees
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capital
- 20 102 permanent employees
- 95.0% black and 62.4% female employees
- Extensive investment in training and development
- Company-funded healthcare cover available to all employees
Employees
Regulators
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capital
- Sustainable materials used in products and packaging
- Group-wide recycling programme
- R7.4 million invested in alternative energy
Customers
Employees
Regulators
- Constrained consumer spending in low economic growth environment
- Ongoing concerns over the stability and long-term viability of the Government of National Unity
- Heightened global uncertainty linked to geopolitical tensions and tariff disputes
- Persistently high unemployment and lack of job creation
- Weak consumer confidence weighing on retail demand
- Sustained lower inflation
- Interest rate relief for consumers
- Growing consumer awareness and demand for sustainable consumption and packaging
Customer care
Customer care from engaging and knowledgeable staff in the front shop and pharmacy.
Convenience
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.
Differentiation
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.
Rewards
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.
Value
Consistently good value-for-money products delivered through competitive prices and effective promotions.
capital
- Group diluted HEPS up 14.1%
- Dividend of 886 cents per share
- Return on equity 49.2%
- Cash generated by operations R6.6 billion
- R2.7 billion returned to shareholders in dividends and share buybacks
- Reinvested R985 million in capital expenditure
capital
- R855 million in cashback paid toClubCard members
- R1 167 million paid in taxes in all countries of operation
- R42 billion paid to suppliers of goods and services, including landlords
- R133 million invested in enterprise and supplier development programmes
- R30 million paid to 11 small enterprise owner drivers contracted to UPD
- R33 million invested in socio-economic development programmes
- 145* bursaries awarded
- 2.6 million social media followers
- Level 3 BBBEE rating
* Reflect the total bursaries awarded aligned to the group’s financial year rather than the academic calendar year.
capital
- Opened net 55 Clicks stores
- Opened net 60 pharmacies
- 53.2% of South Africans live within 5.0 km of a Clicks pharmacy
capital
- Retail pharmacy market share 24.0%
- Private pharmaceutical wholesale market share 26.2%
- Constituent of FTSE/JSE Top 40 Index
- Clicks private label sales account for 25.9% of total sales
capital
- Total carbon emissions 136 379 tonnes CO2e
- Electricity consumption non-renewable energy 110 408 507 KWh
- Produced 5 563 MWh renewable energy
- Total water consumed 69 762 kl
- Waste recovered for recycling 4 434 168 kg
- Introduced fleet of pharma-compliant electric delivery vehicles
capital
- R5.3 billion paid to employees
- R230 million invested in employee training and development
Group turnover
R47.8bn
Cost of merchandise sold
R36.4bn
Trading profit
R4.7bn
Carbon emissions (tonnes CO2e)
136 379
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
Financial capital: The group has no financial capital constraints owing to the strong cash flows generated by the operations and access to borrowings. Should additional resources be required, the group’s strong balance sheet will enable management to secure further loan funding or raise capital through the issue of shares.
Manufactured capital: The availability of retail trading space in the desired locations can limit the pace of new store openings in Clicks. The constraints noted in the 2024 integrated report have since been mitigated. The restriction on Clicks applying for new retail pharmacy licences by the Department of Health was resolved following the disposal of Unicorn Pharmaceuticals while the suspension of load shedding in the country meant that electricity supply is no longer a constraint to trading.
Intellectual capital: The group continues to prioritise investment in training, technology, innovation and data protection while also protecting its intellectual property, so there are currently no immediate constraints on intellectual capital.
Human capital: Scarcity of skills is a constraint, especially in key areas where niche skills such as IT, healthcare and retail are in demand locally and internationally.
Social and relationship capital: The weak economic environment and high energy, food and borrowing costs constrained consumer disposable income which negatively affected discretionary retail spending.
Natural capital: Electricity and water supply is severely constrained due to failing infrastructure.