Clicks to Enhance E-Commerce Platform Amid Growing Demand for Home Delivery
Clicks to Revamp E-Commerce Platform Amid Growing Demand for Home Delivery
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In a strategic move to enhance customer convenience and capitalize on the surging demand for home delivery, Clicks Group has announced a comprehensive revamp of its e-commerce platform. The initiative comes as the retailer acknowledges a sluggish performance in recent years, despite a notable 15.9% growth in sales over the past year.
CEO Albertina Engelbrecht emphasized the company’s commitment to improvement, stating, “Although sales grew, we can and we will do better.” CFO Gordon Traill echoed this sentiment, revealing plans to re-platform both the app and web systems over the next 12 months, focusing not only on delivery enhancements but also on adding new functionalities.
The revamp is timely, as Clicks has been expanding its market share across various categories, including baby products, skincare, hair care, and personal care. Engelbrecht noted that the company’s strategic changes in product placement, particularly in skincare, have significantly improved customer engagement and sales.
Investment analyst Sean Culverwell from Anchor highlighted that while Clicks is gaining market share, particularly in pharmacy and personal care, the full benefits of new pharmacy openings will be realized in the coming months. He remarked, “Clicks continues to stand out as a high-quality, defensive growth play in an otherwise challenging retail environment.”
Sales in Clicks’ front store have been buoyed by a diverse range of products, including sports and slimming items, with private label products accounting for a substantial portion of sales. Engelbrecht revealed that one in every three products sold in the front shop is a private label or exclusive item, contributing R9.7 billion to total sales.
The company is targeting an increase in private label sales contribution from 30.6% to 35%. In the pharmacy sector, generic medication sales rose by 8.8%, now representing 59% of total pharmacy sales.
Clicks is also expanding its UniCare pharmacy format, which has seen success due to after-hours doctor services and strong performance in primary health care. Engelbrecht announced plans to extend this format with new sites and acquisitions by February next year.
With 990 stores currently, Clicks aims to open its 1,000th store by year-end and has set a medium-term goal of 1,200 locations. The company plans to invest R1.3 billion in the 2026 financial year, with a significant portion allocated to new store openings and refurbishments.
Despite challenges in the general merchandise sector, which saw a 5.5% revenue decline, Engelbrecht is optimistic about regaining market share through product range reviews.
Looking ahead, Culverwell remains positive about Clicks’ outlook, anticipating another year of double-digit earnings growth supported by a robust pipeline of new store openings and pharmacy launches. He noted that margins are expected to remain strong due to increasing private label penetration and ongoing share buyback programs.
As Clicks embarks on this ambitious e-commerce overhaul, the company is poised to strengthen its position in the competitive retail landscape, ensuring that it meets the evolving needs of its customers.
