Integrated Annual Report 2021

Home

Group
Strategy

Clicks Group’s strategy is to create sustainable long-term shareholder value through a retail-led health, beauty and wellness offering.

GROUP Strategic objectives

  1. 1

    Grow the retail footprint by expanding the store base and online presence

  2. 2

    Accelerate pharmacy market share gains in South Africa

  3. 3

    Promote UPD’s national pharmaceutical wholesale and distribution services to grow market share

  4. 4

    Deliver operational excellence with an efficient centralised supply chain

  5. 5

    Create an inclusive and transformed organisation with a strong talent pipeline to support business growth

  6. 6

    Ensure the sustainability of the business through robust environmental, social and governance practices

Arrows

STRATEGIC DRIVERS OF LONGER-TERM GROWTH

These strategic drivers of longer-term organic growth should ensure continued competitive advantage in the health and beauty markets in which the group operates.

Favourable market dynamics Favourable market dynamics
  • Healthcare markets are defensive and offer long-term growth opportunities in South Africa.
  • The increasing use of generic medicines will continue to make healthcare more affordable.
  • Improving living standards, increasing urbanisation and longer life expectancy is contributing to a growing market for health and beauty products.
Convenience Convenience
  • Goal to expand the Clicks store base in South Africa to 900 in the long term, with a pharmacy operating in every store.
  • Goal to achieve retail pharmacy market share of 30% in the long term.
  • The online store and a national pharmacy delivery service model increase customer convenience.
Differentiation Differentiation
  • 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.
Personalisation Personalisation
  • 9.2 million active members makes Clicks ClubCard one of the largest retail loyalty programmes in South Africa.
  • Migrating these ClubCard members onto the Clicks app enables personalised communication and offers.
  • Influence customer behaviour and personalise communication through digital engagement via the ClubCard, website, online store and mobile app.
  • ClubCard offers customers attractive and convenient cashback rewards and an increasing range of affinity partner benefits.
Personalisation Personalisation
  • 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.
  • The business offers a distribution service to local and international pharmaceutical manufacturers based on price, quality control and speed to market.
  • UPD has targeted a 35% share of the fine wholesale share and 40% share of the bulk distribution market.

CLICKS GROUP VISION
To be the leading health and beauty retailer in targeted markets within southern Africa.