CAPE TOWN - Health and beauty retailer Clicks continued to show growth in the 20 weeks to mid-January 2018, increasing sales by 14.2%.
Clicks reported volume growth of 4.8%, well ahead of most retailers, as comparable store sales grew by 7.5% with selling price inflation averaging 2.7% over the period.
Chief Executive David Kneale said as a value retailer Clicks appeals to cash-strapped consumers. “Sales continue to be driven by our strong promotional offer, with the “3 for 2” promotion on Christmas gifting again proving highly attractive. We are also encouraged by the incremental sales from our online store over the festive season,” he said.
Clicks Group’s total turnover for the period increased by 11.3% to R11.1 billion. Retail sales increased by 13.0% and by 6.7% on a comparable store basis, with selling price inflation of 3.0%. UPD, the group’s pharmaceutical wholesale and distribution business, grew turnover by 11.6%, ahead of selling price inflation of 6.2%.
Kneale said inflation is expected to moderate further in the months ahead, particularly in UPD which will be impacted by the recently announced increase in the single exit price of medicines of only 1.26% for 2018.
“While we are not anticipating any easing of the financial pressure on consumers, we remain confident in our ability to trade through these challenging market conditions, as demonstrated by our recent performance,” said Kneale.
In 2017, The health and beauty group’s turnover increased by 10.9% to R26.8 billion.
READ MORE: Clicks sets its sights on 800 stores
Additionally, in 2017, The company also opened 111 stores during the year and expanded its store footprint to 622. Clicks has also told Business Report in future, it wanted to expand its store network in South Africa to 800.
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- BUSINESS REPORT ONLINE