Clicks Group reports strong growth and ambitious plans for 2026

Clicks Group faces a busy 2026 financial year as it plans to open 40 – 50 stores, and 40 – 50 pharmacies, as well as 10 - 15 Unicare specialised pharmacies over a longer period.

The health and beauty retailer's results for the year to August 31, 2025, showed Thursday that in the past year, its store base expanded to over 990, following the opening of a net 55 stores, and the national pharmacy network was expanded to 780 with the opening of a net 60 pharmacies.

“The group once again demonstrated the resilience of its core product offering in a weak trading environment, delivering growth across its strategic pillars of value, convenience, differentiation and personalisation,” CEO Bertina Engelbrecht said.

In the new financial year, Clicks’ management aims to leverage recent investments in Sorbet, UniCare and the LEAP pharmacy system, while continuing to invest in enhancing the group's omni-channel capability.

Capital expenditure of R1.26 billion is planned for the new financial year. This includes R662 million for new stores and pharmacies and the refurbishment of 70 – 80 stores. A further R594m is to be invested in supply chain, IT and infrastructure.

The group has consistently maintained its track record of creating shareholder wealth. It returned R2.7bn to shareholders in the form of dividend payments of R1.9bn and share buybacks of R751m. The total dividend for the year increased by 14.2% to 886 cents a share.

Over the past decade, the group has delivered a compound annual growth rate of 17.3% in total shareholder returns.

Engelbrecht said the group was well positioned due to its competitive advantage in the defensive health and beauty sectors where it holds market-leading shares in its core retail categories as well as in pharmaceutical wholesale and distribution.

Group turnover increased by 5.3% to R47.8bn. Retail turnover, which includes Clicks, UniCare, The Body Shop and Sorbet corporate stores, increased by 6%.

Clicks reported strong 10.7% growth in private label and exclusive brands, which accounted for R9.7bn of the chain's turnover.

Clicks ClubCard, which celebrates its 30th anniversary this year, grew active membership to 12.6 million and contributed 82.6% of sales in Clicks. Loyalty members received R855m in cashback in the past year, bringing total rewards paid to customers over the past three decades to R7.5bn.

Private label remains the primary driver of the group's differentiation strategy. Strong recent growth momentum in private label and exclusive brands would be maintained, targeting a 35% contribution to front shop sales in the medium term.

Clicks entrenched a leading position in the baby category, growing market share by 80 basis points to 23.1%. The Clicks baby strategy integrates private label and online offerings, specialist baby stores and store-in-stores in Clicks, competitive pricing and Baby ClubCard benefits.

The Clicks Baby standalone stores increased sales by 23% in the past year, store-in-store sales grew 12% and online sales increased by 27%.

Group distribution turnover grew by 5.1% in the past year through increased purchasing compliance across UPD's core wholesale channels.

Group trading profit increased by 12.1% to R4.7bn, and the group trading margin increased by 60 basis points to 9.8%. The retail margin increased from 10.2% to 10.5%, and including the intragroup profit from Unicorn, the margin expanded to 10.8%. UPD increased its trading margin by 10 basis points to 3.3%.

Cash generated by operations came to R6.6bn. Capital expenditure of R985m (R891m) was invested mainly in new stores and pharmacies, store refurbishments, supply chain and information technology (IT).

The retail margin expanded by 70 basis points due to strong growth in higher-margin private label products and supply chain efficiencies. The distribution margin declined by 10 basis points, impacted by the lower adjustment in the single exit price of medicines relative to the prior year. The group's total income margin expanded by 90 basis points to 31.1% as a result of the stronger growth in Retail relative to Distribution.

"While the improvement in South Africa's macroeconomic indicators is encouraging for retail spending over the medium term, consumer sentiment and discretionary spending remain under pressure.," Clicks' management said.

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