Clicks has reported a strong start to the 2024 Financial Year, with the Christmas period seeing its highest-ever sales. <\/p>\n\n\n\n
In a trading update for the 20 weeks ended 14 January 2024, the group said its retail sales from Clicks, The Body Shop and Sorbet increased by 11.8% compared to the same period in the prior financial years.<\/p>\n\n\n\n
Sales in comparable stores increased by 8.4%, whilst selling price inflation averaged 7.5% (2023: 6.8%) for the period. <\/p>\n\n\n\n
CEO Bertina Engelbrecht said that Clicks’ growth was primarily driven by festive solid season trading, with Clicks reaching its highest-ever daily sales on Friday, 22 December 2023. The group added that the week before Christmas was the record trading week for the chain. <\/strong><\/p>\n\n\n\n “Clicks reported robust growth over the period in personal care, beauty and everyday essentials such as confectionery and cleaning products, supported by strong sales of private label and exclusive brands. This sales performance translated into market share gains across all core product categories in Clicks in the first quarter of the financial year,” the group said.<\/p>\n\n\n\n Sorbet, which the group acquired in June 2023, saw franchise and corporate sales increase by 12.3% over the comparable period. <\/p>\n\n\n\n However, United Pharmaceutical Distributors’s (UPD’s) total managed turnover – combined wholesale turnover and turnover managed on behalf of bulk distribution clients – dropped by 6.3%. <\/p>\n\n\n\n Wholesale turnover was 0.8% lower due to the impact of the systems transition at UPD\u2019s main distribution centre in the early parts of FY2024. However, wholesale turnover improved after the systems stabilised, increasing by 6.9% in the six weeks to 14 January 2024. <\/p>\n\n\n\n Engelbrecht noted that UPD\u2019s strategy of rationalising its bulk distribution portfolio to concentrate on profitable clients has adversely affected turnover via the non-renewal of two contracts. <\/p>\n\n\n\n \u201cHowever, this strategy is expected to benefit margin and support the acquisition of profitable new clients in the year ahead,” the CEO said. <\/p>\n\n\n\n Overall, group turnover grew by 8.0% to R16.8 billion. <\/p>\n\n\n\n The group’s interim results for the six months ended 29 February 2024 will be released on roughly 25 April 2024.<\/p>\n\n\n\n
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