Clicks rolling out new stores across South Africa

Clicks plans to open between 45 and 55 stores and 45 to 55 pharmacies in the 2025 financial year, which is off to a good start with strong interim results for the first half.

Clicks is South Africa’’s leading pharmacy, health and beauty retailer, with over 945 stores and over 730 in-store pharmacies. Some of its brands include Clicks Baby, The Body Shop and Sorbet.

The retail giant released its results for the six months ended 28 February 2025 on Wednesday, 16 April, which revealed a strong performance from the group.

Clicks’ revenue grew by 6.65%, while its group turnover increased by 6.2% to R23.16 billion.

Comparable store turnover grew by 5.4% – which excludes the extra trading day in the prior period due to a leap year – with inflation of 3.3% and volume growth of 2.1%.

The retailer’s trading profit for the six months was R2.10 billion, up 12.6% from the first half of its 2024 financial year.

Its retail costs grew by 8.5%, which Clicks attributes mainly to a higher wage increase and the resumption of pharmacy openings, as well as higher electricity, card acquiring and advertising costs.

This saw the company make a profit of R1.44 billion for the period, a 12.9% year-on-year increase. Clicks’ earnings per share grew by 13.1% to 602.9 cents per share.

Clicks reported strong growth in front-shop health and pharmacy, higher sales of private-label products, and increased promotional sales during the six-month period.

The retail giant also recorded a significant milestone in the period, opening its 950th store in February, extending its national pharmacy footprint to 740. 

Clicks has opened 29 new pharmacies to date in the current financial year and said it plans to open 45 to 55 stores and 45 to 55 pharmacies for the 2025 financial year.

This aggressive expansion forms part of Clicks’ medium-term target of 1,200 stores. Therefore, the retailer also announced that a capital investment of R1.03 billion is planned for the full financial year. 

This includes R578 million for new stores and pharmacies and store refurbishments. A further R447 million will be invested in Clicks’ supply chain, technology, and infrastructure.

Clicks further reported strong growth in its rewards programme, Clicks ClubCard, which grew its active loyalty membership to 12.1 million, having added over 1 million new members in the past year.

ClubCard accounted for 81.6% of Clicks sales, and members were rewarded with R438 million in cashback over the six-month period.

Looking forward, Clicks said South Africa’s trading environment will remain constrained in the second half of the 2025 financial year.

The retailer attributed this partly to the VAT rate increase effective from 1 May 2025, which is set to impact consumer spending. 

In addition, the retailer pointed to ongoing global uncertainty and geopolitical risks, which could adversely affect the country’s macroeconomic outlook.

However, Clicks’ management is confident that the retailer’s competitive advantage and market-leading positions in the health and beauty sectors will ensure that it continues to deliver on its medium-term financial targets.

The company also pointed to long-term organic growth opportunities in Clicks and the increasing scale of the business as factors working in its favour.

Clicks’ board of directors approved an interim gross ordinary dividend for the period ended 28 February 2025 of 238.0 cents per share.