Clicks to invest R700m in its stores
Capital expenditure to hit record levels as health and beauty retailer seeks greater volumes to offset moderating rate of inflation
Retail and healthcare group Clicks is targeting earnings growth of between 12% and 17% for the financial year to August 2018, driven by competitive pricing, promotions and loyalty reward programmes. The group said 2018 would be a record year of capital expenditure as it aimed to invest over R700m in new stores, pharmacies, store refurbishments, supply chain infrastructure and information technology. CEO David Kneale said the group had plans to open 40 stores in 2018 in an effort to increase volumes as inflation slows. The stores would mostly be located in urban areas where they could take advantage of the high density and convenience of location. “To increase volumes we must be innovative and we have begun by introducing over 300 Sorbet lines,” said Kneale. Clicks has expanded its store footprint by 24 shops in the six months, bringing its total number of stores to 646. It hopes to grow its South African store base to 900 in the longer term. A portfolio manager at Mergence Investmen...
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