Clicks Group Limited (JSE: CLS) is a South African investment holding company known as a retail healthcare group. This corporation has been listed in JSE limited as a drug and food retailer since 1996. Clicks Group is a subsidiary house for leading beauty and health retailers in South Africa and also leading as a pharmaceutical wholesaler and distributor, among other businesses.
At the same time, UPD (United Pharmaceutical Distributor) is a leading corporation for a full-range national pharmaceutical wholesaler in Southern Africa.
About Clicks Group Ltd
Clicks group, founded by the retailer Jack Goldin, opened its first store in St. George Street, Cape Town, in August 1968, and originally it was conceived as a drugstore. But at that time, the legislation in South Africa anticipated the corporate ownership of pharmacies. Meanwhile, Clicks Group, with a market capitalization of R880 million listed in JSE limited in March 1996.
In 2003 the legislation of that time changed and allow the corporate ownership of pharmacies. The dispensaries start enabling to be introduced in Clicks Group. So, the first pharmacy of Clicks Group was opened in Sea Point, Cape Town, in March 2008
Now, Clicks Group limited has grown into the Healthcare market leader, and this group has a 2.34% share of the retail pharmacy market. United pharmaceutical Distributer has 30.6% shares of the private pharmaceutical wholesale market.
Image source: Игорь Головнёв – stock.adobe.com
Clicks IPO
In March 1996, Clicks Group was listed on JSE, s mainboard using the symbol (JSE: CLS) under the food and drug retailer sector. This is the secondary listing of Clicks Group limited in JSE with a market capitalization of R880 million. The primary listing was as a holding company in JSE in 1983.
The Clicks group has grown as a healthcare market leader and has 24.6% shares of the retail pharmacy market, and in a private pharmaceutical wholesale market, it has 27.2% shares. The Clicks Group include clicks, The body shop, Musica, Claire’s, and GNC. Together this brand has a presence in almost 829 stores in Southern Africa and also has 51 stores in its neighbouring countries like Botswana, Lesotho, Swaziland, and Namibia
Clicks Group delights its customers by offering innovative products at competitive prices. This group also has a shareholding in Sorbet brands so that its products continue to grow and be available in South Africa.
Click Groups also has a partnership with The Appliance Bank (TAB) to provide great assistance to the unemployed to start their own business and society moves towards sustainable growth.
Clicks Group investments
The Clicks group invested millions and billions of it for the long-term sustainable growth of the retail and healthcare sector in South Africa and its neighbouring countries. It invested in online projects for enhancing customer loyalty and market position.
Through the investments they made and continue to make in the future, their Healthcare markets are growing and becoming defensive. It had a market-leading position in healthcare and retailing markets. Moreover, its networks are expanding, and it becomes more convenient for the customers. By offering differentiated products and personalization engagement, it makes its operational margin competitive globally.
Clicks group made investments in the following:
- Public Investment Corporation (SOC) Ltd: In Clicks Group has 13.8% shares and contains 34,066,782 equities
- Fidelity Management & Research Co. LLC: In Clicks Group has 5.85% shares and holds 14,400,979 equities.
- GIC Pte Ltd: this corporation with the equities of 9,697,843 holds shares of 3.94%
- RBC Global Asset Management Ltd: It holds 3.77% of shares in the Click Group
- JPMorgan Asset Management Ltd: The 3.74% of shares held by this corporation in Clicks Group
- The Vanguard Group, Inc.: It contains 3.14% of shares in Clicks
- Rowe Price International Ltd: This Corporation owns 2.27% of shares with 5,587,862 equities
- BlackRock Fund Advisors: In Clicks Group has 1.85% shares and holds 4,558,650 equities.
- LGM Investments Ltd: In Clicks Group, it has 1.53 shares and holds 3,774,243 equities.
- William Blair Investment Management LLC: In Clicks Group has 1.24% shares and holds 3,060,379 equities.
Clicks Business Strategy
Click’s business strategy is to enhance their performance by delivering a competitive and differentiated front shop product offer and creating great customer loyalty and experience through rewards and personalization.
Clicks also plan to grow theirs retails to enhance the convenience for customers. It ensures supply chain management or operational intelligence and maintains its workforce skilled and active to remain resilient and defensive.
Clicks drive its performance and earn market share gains by product differentiation, competitive pricing, growing convenience, and new stores of its most core categories.
Offering Differentiated products
Customers are becoming aware of the environmental impact on the products they consume. So, Clicks introduced its eco-friendly products to enable their sustainable growth and maintain their industry position. Clicks offered its differentiated products among all categories at competitive prices and enhanced its margins and brand appeal in the market for increasing its returns.
Enhancing Customer engagement through personalization
The Clicks Group utilizes digital technology to engage their customers and to personalize communication with their target market. It influences its shopping behaviour through personalization. Club card is the central iconic loyalty program of Click brand through which it personalizes its engagement strategy
Maintenance of value proposition
In this competitive environment creating value for customers is the most critical area to focus on. Clicks is maintaining its value by offering promotions that appeal to the customers, and it provides its products at competitive prices among all national retailers.
Clicks Stock Analysis
The Clicks Group Limited currently trades at R259.44 and makes its highest at R261.1 on May 28, 2021. The share price of Clicks Group Ltd has started to recover, but it shows a bullish movement in the short term trend and valuation appears high for the stock, and the failure of a bullish move is assumed in the long term trend, so the broker rating for the share is “Sell”.
Bottom Line
The click aims to expand stores and its online presence to grow retail and earn the pharmacies’ market share gains, mainly in South Africa. It focuses on creating an inclusive organization to promote and support sustainable business growth and deliver operational excellence with centralized and efficient supply chain management. For their long-term growth, it ensures favourable market dynamic, customer convenience, Differentiation, personalization, and growth opportunities for UPD because it offers local and international manufacturers a distribution service based on quality and price control.
