Clicks buys Pick n Pay’s retail pharmacy business

SA’S largest health and beauty retailer, Clicks, is buying Pick n Pay’s retail pharmacy business as it pursues its goal of opening a pharmacy within 5km of every South African.

The 25 pharmacies that are located in Pick n Pay Stores will be rebranded under the Clicks name.

Clicks opened its 600th pharmacy in February and the acquisition will increase its national presence to 632.

Clicks has been expanding for years and plans to have 900 stores in the country, with a pharmacy in each. It is the largest retail pharmacy chain.

“Currently 50% of the country’s population live within 6km of a Clicks pharmacy and we aim to improve this over time as we get closer to customers,” CEO Vikesh Ramsunder said.

Clicks is closing its last Musica stores this month after the chain lost money for two years as consumers have switched to digital music and entertainment, but its core business, Clicks stores and its UPD medicine wholesale and distributor, are thriving.

Pick n Pay COO Adrian Naude said that the company’s future growth plans do not include its pharmacies, and the group wanted to ensure that its staff jobs were saved, which the transaction will ensure.

The pharmacists will now be employed by Clicks.

“Pick n Pay has only held a relatively small number of pharmacies over the years,” said Naude.

“We have recently set out our key strategic objectives in terms of future growth, and these do not include the development of a large pharmacy division,” he said.

Pick n Pay is focusing on nurturing its grocery store footprint with an emphasis on expanding its growing discount Boxer chain, which competes with Shoprite and Usave.

The merger is subject to approval by the competition and regulatory authorities.