While the commitment to investing in manufactured, intellectual, human<\/b>, and social and <\/b><\/span>relationship capital <\/b>erode financial<\/b> capital<\/b> in the short term, the long-term benefits are reflected in the group\u2019s industry-leading financial and operating metrics and sustained shareholder value creation. <\/span><\/span><\/p>\n Limiting the environmental impact of the operations to reduce the rate at which natural<\/b> capital<\/b> is depleted has a significant impact on financial<\/b> capital <\/b>in the short to medium term but should deliver the desired long-term benefits as the group ultimately moves towards carbon neutrality.<\/span><\/p>\n <\/p>\n Material trade-offs of capitals In delivering on the group\u2019s 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 […]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-busmodel.php","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-561","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\n
\nConstraints on capitals<\/h3>\n
![\"\"](\"https:\/\/clicksgroup.co.za\/iar2025\/wp-content\/uploads\/3Artboard-1-copy-31.svg\")
\nFinancial capital: <\/b><\/span>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\u2019s strong balance sheet will enable management to secure further loan funding or raise capital through the issue of shares.<\/span><\/p>\n![\"\"](\"https:\/\/clicksgroup.co.za\/iar2025\/wp-content\/uploads\/3Artboard-1-copy-41.svg\")
\nManufactured capital: <\/b><\/span>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.<\/span><\/p>\n![\"\"](\"https:\/\/clicksgroup.co.za\/iar2025\/wp-content\/uploads\/3Artboard-1-copy-71.svg\")
\nIntellectual capital: <\/b><\/span>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.<\/span><\/p>\n![\"\"](\"https:\/\/clicksgroup.co.za\/iar2025\/wp-content\/uploads\/3Artboard-1-copy-51.svg\")
\nHuman capital: <\/b><\/span>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.<\/span><\/p>\n![\"\"](\"https:\/\/clicksgroup.co.za\/iar2025\/wp-content\/uploads\/3Artboard-11.svg\")
\nSocial and relationship capital: <\/b><\/span>The weak economic environment and high energy, food and borrowing costs constrained consumer disposable income which negatively affected discretionary retail spending.<\/span><\/p>\n![\"\"](\"https:\/\/clicksgroup.co.za\/iar2025\/wp-content\/uploads\/3Artboard-1-copy1.svg\")
\nNatural capital: <\/b><\/span>Electricity and water supply is severely constrained due to failing infrastructure. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"