Clicks Value offerings enable Clicks to increase profit
More than two-thirds of sales generated by 6.5-million active Clubcard members
Clicks has maintained its operating margins despite a heavy promotional market and depressed economy. CEO David Kneale said on Friday that the group had stuck to its strategy of offering value to consumers. "We’ve always been a value retailer and we’ve tried to stay true to ‘At Clicks you pay less’. Even when it comes to medicine, we endeavour to move customers to lower-cost generic drugs," he said. Prices were competitive and the group had a strong portfolio of private-label products in which customers found value, Kneale said. "We have also had great success with our mix and match, where shoppers have access to over 2,000 products." In the six months to February, Clicks reported a 13.5% increase in diluted headline earnings per share to 232c. Group turnover increased 8.5% to R13.1bn and operating profit was 14.7% higher at R840m. The group operating margin expanded 30 basis points to 6.4%. Kneale said a little more than two-thirds of sales had come from the 6.5-million active Club...
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