Clicks Group reports resilient first-half performance despite systems delays and consumer pressure, fueled by strong loyalty programme growth.
Clicks ClubCard, the group’s flagship loyalty initiative, grew its active membership base by 800,000 to reach 12.9 million members during the first six months of the 2026 financial year. The program now contributes a commanding 83.7% of total sales at Clicks, underscoring the strategic importance of customer retention in a challenging retail environment.
Loyalty members received R527 million in cashback rewards over the period, reinforcing the value proposition for South African consumers facing constrained spending power.
“The growth of Clicks ClubCard to 12.9 million active members reflects the strength of our customer value proposition,” a spokesperson for Click Group said. “Even amid internal systems challenges and aggressive competitor discounting, our loyalty program continues to drive meaningful engagement and reward our customers for choosing Clicks.”
Pharmacy gains and milestone store opening
Against a backdrop of tight household budgets, Clicks delivered a resilient operational performance. Pharmacy sales increased by 8.6%, with the group’s retail pharmacy market share strengthening to 24.9% , up from 24.2% in the prior period.
Clicks also reached a significant milestone, opening its 1,000th store and expanding its total footprint to 1,003 stores. The national pharmacy network now stands at 795 outlets.
Systems delays impact retail turnover
Retail turnover was affected by delays in the implementation of a new warehouse management system (WMS) at the Clicks distribution centre in Cape Town. The disruption reduced product availability in Western Cape and Eastern Cape stores, particularly over the festive season.
Management estimates that the systems delay reduced retail turnover by approximately R175 million, equivalent to 0.9% of retail sales. Product availability has since improved steadily, returning to targeted levels by the end of February 2026.
Retail trading was further pressured by aggressive competitor discounting during the festive period.
“While the WMS implementation challenges were disappointing, we are pleased that product availability has normalised,” the Click Group spokesperson added. “Our team’s focus on operational recovery and the continued strength of our pharmacy and loyalty pillars position us well for the second half.”
Financial highlights and shareholder returns
Headline earnings grew by 6.4% to R1.5 billion. Basic earnings per share rose 8.3% to 653 cents, while headline earnings per share increased 8.1% to 653 cents, benefiting from share buybacks over the past 18 months.
Inventory levels increased by 13.4%, with group inventory days at 89 days — four days higher than the prior period — largely due to the WMS implementation and new store openings. However, net working capital days improved from 45 to 43 days.
Cash generated by operations totalled R1.9 billion. Capital expenditure of R311 million (H1 2025: R222 million) was invested primarily in new stores, pharmacies, refurbishments, supply chain, and IT.
The group returned R2.3 billion to shareholders through dividend payments of R1.5 billion and share buybacks of R752 million.
Outlook: Consumer pressure and expansion plans
Looking ahead, Click Group expects the consumer environment to remain under significant pressure in the second half, with rising fuel prices and associated inflationary pressures constraining household spending.
Nevertheless, Clicks plans to open 40–50 new stores and 40–50 new pharmacies in the 2026 financial year. In addition, 10 differentiated concept stores will be piloted in the second half.
UPD, the group’s distribution arm, recently acquired a medical consumables business and will launch this offering to customers.
Total capital expenditure of R1.3 billion is planned for the 2026 financial year, including R662 million for new stores, pharmacies, and refurbishment of 80–90 stores, and R594 million for supply chain, IT, and infrastructure.
“We remain fully committed to our medium-term financial targets and our store target of 1,200,” the Click Group spokesperson concluded. “The investments we are making today in supply chain, technology, and differentiated retail formats will drive sustainable growth beyond the current consumer cycle.”
