Clicks turnover exceeds R50bn for first time as retail footprint expands

Health and beauty retailer Clicks has reported a resilient performance for the financial year to end-August 2026, in what it said was an environment of constrained consumer spending and aggressive competitor discounting. The group increased turnover by 5.4% to exceed R50 billion for the first time, at R50.4 billion.

Retail turnover - which includes Clicks, UniCare, The Body Shop, Sorbet corporate stores and now KwaMakhi, increased by 4.2%. KwaMakh i was launched in August as a neighbourhood convenience brand targeting South Africa’s township market. Following the financial year-end, the group also increased its shareholding in premium beauty retailer ARC Store to 61%, acquiring a further 35.3% interest for R507 million.

Distribution turnover for Clicks grew by 9.2% during the period, mainly driven by a 19.3% increase in revenue from preferred bulk contracts. Headline earnings per share (HEPS) rose by 4.4% to 1 422 cents. Clicks declared a total dividend of 925 cents per share, an increase of 4.4% over the previous financial year.

The group continued to expand its retail footprint, opening 41 new stores and 60 pharmacies. The well-established Clicks ClubCard loyalty programme grew active membership to 13.1 million, with members receiving R976 million in cashback rewards during the year. Stephen Grootes asks Group CEO Bertina Engelbrecht how they managed to improve their retail margin by 90 basis points in an increasingly competitive space.

It was not an easy thing to do, Engelbrecht acknowledges, stressing that they wanted to make sure everything they do sets Clicks up in terms of momentum for the 2027 financial year. "So, we focus on the things that we can control. You see that in very tight cost management, with retail comparable costs for the year up 3.6%, and margin improvement.

In part, that is because of the quality of relationships we hold with suppliers." In essence, this is focus on protecting the core of the business and ensuring that the core is resilient, she says. "For example, you continue to grow your private level contributions, continue with your store and pharmacy rollout programme, pay attention to service, revitalise your club card." Also important is looking at new growth opportunities, Engelbrecht says..

Clicks plans to open 40-50 new stores in the 2027 financial year as it progresses towards its medium-term target of 1 200 stores. In addition, the group plans to roll out 10-15 UniCare specialised pharmacies over the medium term, and expand KwaMakhi in the township market. To hear more from the Clicks Group CEO, listen to the interview audio at the top of the article