Clicks boosts sales in 20-week pe­riod

The Star Early Edition - - COMPANIES - Sandile Mchunu

BOOSTED by Christ­mas sales, heath and beauty re­tailer Clicks in­creased its sales by 13.6 per­cent in the 20 weeks to mid-Jan­uary.

Chief ex­ec­u­tive David Kneale said yes­ter­day the Clicks chain per­formed well in the cur­rent con­strained con­sumer en­vi­ron­ment, show­ing vol­ume growth of 4.2 per­cent, well ahead of most re­tail­ers.

“It is most en­cour­ag­ing that we con­tin­ued to ex­pe­ri­ence buoy­ant trad­ing in the weeks af­ter Christ­mas, driven mainly by value pro­mo­tions across all of our prod­uct cat­e­gories,” he said.

Clicks in­creased same store sales by 9.6 per­cent, with sell­ing price in­fla­tion of 5.4 per­cent.

Kneale said cus­tomer be­hav­iour con­tin­ued to re­flect a shift to shop­ping later in the fes­tive sea­son and Clicks ex­pe­ri­enced record trad­ing days in the week lead­ing up to Christ­mas.

To­tal re­tail sales for the Clicks Group in­creased by 12.2 per­cent and by 8.5 per­cent in com­pa­ra­ble stores, with sell­ing price in­fla­tion av­er­ag­ing 5.3 per­cent.

To­tal group turnover for the 20-week pe­riod grew by 8.6 per­cent to R10 bil­lion.

UPD, the group’s phar­ma­ceu­ti­cal whole­sale and dis­tri­bu­tion busi­ness, in­creased turnover by 6.4 per­cent, ahead of sell­ing price in­fla­tion of 4.3 per­cent for the pe­riod.

Kneale said man­age­ment was con­fi­dent of Clicks main­tain­ing its com­pet­i­tive mar­ket po­si­tion through its value of­fer to cus­tomers and the con­tin­ued ex­pan­sion of the Clicks store and phar­macy foot­print.

“This will be sup­ported by the rel­a­tive re­silience of the health and beauty mar­kets in which we trade,” he added.

Da­mon Buss, an eq­uity an­a­lyst at Elec­tus Fund Man­agers, said Clicks man­aged to grow re­tail sales by 9.6 per­cent like-for-like ex­clud­ing new stores.

“It is still a de­cent per­for­mance by the com­pany and the brand is show­ing a good vol­ume growth over the pe­riod,” he said.

Buss added that Clicks’ num­bers re­flected a com­pany that was ahead of other re­tail­ers but cau­tioned the com­pany was be­hind its tar­get of 12.2 per­cent sales growth for its full year.

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