Clicks is betting on aggressive expansion in healthcare and pharmacy services even as the economy struggles to grow and rival retailers move into the same space while continuing to diversify their offerings.
The retailer with an R86.7bn market cap on the JSE plans to open about 50 stores and the same number of pharmacies in the year ahead. CEO Bertina Engelbrecht told Business Day that consumer demand for convenient access to healthcare remained strong despite rising costs and low spending power.
She said the company remained confident in its store rollout plan with the risk of self-cannibalising in mind.
“Customers want a Clicks store closer to where they are. We offer value, convenience and health gain and even when we open new stores near existing ones, sales at both sites tend to rise,” she said.
Clicks, which operates more than 990 stores and 780 pharmacies, is broadening its healthcare offering through its UniCare model, 24-hour clinics that include specialised services such as diabetes management, travel vaccines, IV infusions and doctor partnerships. The retailer is also piloting smart pharmacy lockers and exploring ways to introduce medicine delivery within regulatory limits, Engelbrecht said.
The expansion comes as competition in the healthcare market intensifies. Dis-Chem is ramping up its medical services network while Spar recently entered the pharmaceutical wholesale business through the acquisition of Aptekor Group. Engelbrecht said Clicks welcomes the competition, calling it a sign that others “see the opportunity” the group identified years ago.
Clicks’ distribution arm, UPD, also remains a critical strategic pillar. Engelbrecht said no regulatory risks were on the horizon. She praised the business for recovering strongly from system challenges.
UPD has been carrying additional stock to ensure full supply to hospitals and pharmacies, including GLP-1 medicines that have faced global shortages. According to Engelbrecht, this was not a sign of a declining consumer demand but a deliberate strategic approach.
While the retail and distribution operations delivered double-digit profit growth, the CEO said macroeconomic pressures, low GDP growth, high unemployment and rising costs remained a drag on consumer sentiment.
Clicks has boosted its private label and exclusive brands, which now account for R9.7bn in sales. Its ClubCard loyalty programme with 12.6-million active members returned R855m to shoppers in the past year.
The group is also expanding in Southern Africa, where it operates about 60 stores across Namibia, Botswana, Lesotho and Eswatini. Engelbrecht said Namibia remained its strongest growth market, posting double-digit sales increases.
Despite weak economic conditions, Clicks delivered a 14.1% rise in headline earnings and generated R6.6bn in cash from operations in the 2025 financial year. The company declared a total dividend of 886c per share.
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Group turnover increased 5.3% to R47.8bn and retail turnover, which includes Clicks, UniCare, The Body Shop and Sorbet corporate stores, increased 6%.
Group trading profit rose 12.1% to R4.7bn and the trading margin increased by 60 basis points to 9.8%.
A final dividend of 648c per share was declared, lifting the total dividend by 14.2% to 886c per share.
Capital expenditure of R1.256bn is planned for the 2026 financial year, which includes R662m for new stores and pharmacies and the refurbishment of 70–80 stores. A further R594m will be invested in supply chain, IT and infrastructure.
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