Clicks enjoys a merrier Christmas
The group, which owns Musica and the South African franchise of The Body Shop, along with its flagship Clicks chain, reported retail sales growth of 12.2% in the 20 weeks ended January 15. This was an improvement on the 9.6% for the 20 weeks to January 18 2015.
But the group’s overall turnover, which includes its pharmaceutical wholesaler UPD, slowed to 8.6% from 13.9% in the matching period in 2015. The group’s turnover for the 20 weeks came to R10bn, the company said in its trading statement.
Sales growth accelerated to 13.6% from 10.3% in the matching 20 weeks in 2015 for the Clicks chain.
Excluding new stores, the Clicks chain grew sales 9.6% while product inflation was 5.4%
"Customer behaviour continues to reflect a shift to shopping later in the festive season and Clicks reported record trading days in the week ahead of Christmas," CEO David Kneale said.
"We continued to experience buoyant trading in the period after Christmas, driven mainly by value promotions across all categories.
"In the months ahead we expect Clicks to maintain its competitive market position. This will be driven by our value offer to customers and the continued expansion of the Clicks store and pharmacy footprint, underpinned by the relative resilience of the health and beauty markets in which we trade."
UPD increased turnover by 6.4%, ahead of selling price inflation, which averaged 4.3% for the period.
Clicks expects to release its interim results for the six months to end-February on April 21.