Clicks is closing in on a market value of R100bn, backed by consistent earnings growth, its strong positioning in the beauty and pharmacy sectors, and investor confidence in its strategy.
The group is the third-largest listed retailer by market capitalisation, behind Pepkor and Shoprite. Its shares closed at R371.41 on Friday, giving the group a market capitalisation of R87.9bn. That is an increase of more than 64% over the past five years and 28% over the past three years.
Dis-Chem, its fiercest rival, is a distant laggard, with a share price of R30.52 and a market value of R26.3bn. Still, the company has enjoyed a near 70% surge in its share price over the past five years. In the past three years its valuation has declined by more than 8%.
“Clicks has a market capitalisation underpinned by consistent earnings growth, strong brand equity in beauty and skincare, and well-integrated omnichannel infrastructure,” said Aheesh Singh, chief investment officer at MP9 Asset Management.
“Clicks is trading at a price-earnings ratio of 30 times, which reflects investor confidence in the [company’s] story.
“Dis-Chem, by contrast, has a market capitalisation of [nearly] R27bn and trades at a PE of 23. While still an elevated valuation in an SA context, it’s clear where investors are placing their bets,” Singh said.
“Despite efforts in wholesale expansion and digital reinvention, investors appear cautious, likely due to underperformance in categories such as beauty, slower tech execution and a more complex turnaround story.
“The divergence underscores Clicks’ positioning as the sector leader and Dis-Chem’s need to accelerate strategic delivery to regain investor momentum.”
Skincare and beauty remain key for both retailers. Clicks grew the category by nearly 16% in 2024 and plans to open 40-45 new stores in 2025, many centred on pharmacy and beauty. Dis-Chem, meanwhile, has seen slower performance in the segment.
“While not a current growth engine, Dis-Chem is prioritising a turnaround, simplifying promotions and refreshing its loyalty programme to revive traction. Clicks is scaling strength, Dis-Chem is repositioning for recovery,” Singh said.
Both retailers are leaning on private-label strategies to boost margins and deepen customer engagement. Clicks’ in-house brands now account for more than a quarter of health and beauty sales.
Dis-Chem is following a similar approach, but Singh said that “Clicks’ mature portfolio gives it an edge in margin impact and brand strength”.
Clicks’ broader strategy is built on value, convenience, differentiation and personalisation. In 2024, the group opened 51 new stores, bringing its total to 936, and increased pharmacy market share to 24.2%. Its ClubCard loyalty programme contributed more than 80% of sales. The programme is celebrating its 30th anniversary with more than 13-million active members and R7.5bn paid out in cash.
Retail turnover grew 11.7% and trading profit exceeded R4bn for the first time. The group also made progress in baby care, launching new Clicks Baby stores, and recorded strong growth in private-label and exclusive brand sales. Its acquisition of Sorbet and partnership with ARC Stores have bolstered its positioning in both mainstream and premium beauty.
Dis-Chem continues to invest in digital transformation and loyalty revamps, but analysts said faster execution was needed to restore lost market share and capitalise on shifting consumer trends.
“Dis-Chem faces steeper challenges. It acknowledges that its digital platforms fall short and is investing in a full overhaul, with a loyalty relaunch planned for full-year 2026. The risk is falling further behind if change is too slow. Still, if executed well, Dis-Chem could use its scale and data assets to win back younger beauty shoppers,” said Singh.
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