Clicks To Open Hundreds More Stores As Profits Surge In South Africa

Clicks is charging ahead with one of its biggest growth drives yet, after posting another strong year of earnings and confirming plans to open hundreds of new stores and pharmacies across South Africa.

Strong Year Despite Tough Economy

In its financial results for the year ending 31 August 2025, the Clicks Group reported a 14.1% increase in diluted headline earnings per share, reaching 1,362 cents, while turnover climbed 5.3% to R47.8 billion. Return on equity stood at an impressive 49.2%, reinforcing the group’s dominance in South African retail health and beauty.

Clicks said the performance highlighted the “resilience” of its core offering despite inflationary pressures and ongoing consumer strain. The company credited its private label and exclusive brands which jumped 10.7% year-on-year to generate R9.7 billion in sales as key drivers of growth.

Expanding The Store And Pharmacy Network

Clicks’ national footprint continues to grow rapidly. Over the past year, the group added 55 new stores, bringing its total network to more than 990 outlets nationwide. Its pharmacy network also expanded to 780 locations after opening a net 60 new pharmacies, cementing Clicks’ position as South Africa’s largest retail pharmacy chain.

Looking ahead, Clicks plans to open between 40 and 50 new stores, along with the same number of pharmacies, in the 2026 financial year. The group’s medium-term target is even more ambitious reaching 1,200 stores and adding 10 to 15 UniCare specialised pharmacies across the country.

Capital expenditure will also rise sharply to R1.3 billion next year, with over half of that earmarked for new store development and refurbishments of 70 to 80 existing locations.

ClubCard Loyalty Keeps Customers Coming Back

Clicks’ iconic ClubCard loyalty programme, now celebrating its 30th anniversary, remains one of South Africa’s most successful retail loyalty systems. Active membership grew to 12.6 million during the financial year, with members contributing over 82% of total sales.

More than R850 million was paid back to shoppers in cashback rewards, bringing total customer benefits over three decades to R7.5 billion.

Social media reactions were overwhelmingly positive, with long-time customers celebrating the anniversary and calling ClubCard “a lifesaver” for household budgets in tough economic times.

Rewarding Shareholders Too

Shareholders weren’t left out of the celebrations. Clicks declared a total dividend of 886 cents per share up 14.2% from last year and a payout ratio of 65%. The group also returned R751 million through share buybacks, underlining investor confidence in its long-term growth strategy.

Looking Ahead: Health, Beauty And Homegrown Brands

Despite economic challenges, Clicks remains bullish about the road ahead. Management said the group is well positioned to benefit from improving macroeconomic trends and a growing appetite for health and wellness spending.

Recent acquisitions including Sorbet, UniCare and the rollout of its LEAP pharmacy system are expected to strengthen its footprint in health and beauty services.

“Private label remains the primary driver of the group’s differentiation strategy,” Clicks said, adding that it aims for private and exclusive brands to contribute 35% of front-shop sales in the medium term.

A South African Retail Powerhouse

From its first store in 1968 to nearly 1,000 locations today, Clicks has become a cornerstone of South African retail life and it’s not slowing down anytime soon.

As consumers tighten their belts, Clicks’ mix of affordable health, beauty and pharmaceutical products, backed by strong loyalty incentives, has cemented its place as one of the country’s most trusted and accessible brands.

With hundreds more stores on the way, it’s clear that Clicks isn’t just weathering South Africa’s tough retail climate it’s thriving in it.

{Source:Business Tech}

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