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Health and beauty sales boost New Clicks' revenue

By unknown | Oct 26, 2007 | COMMENTS [ 0 ]

Staff Reporter

Staff Reporter

Retail group New Clicks, whose chains include Musica and Body Shop, reported a 12percent growth in sales to R11billion for the year to the end of August.

The group said Clicks continued to realise the benefits of its focused merchandise strategy, increasing turnover by 14percent.

The performance was driven mainly by growth of 19percent in health and 16percent in beauty, with these two categories now accounting for 70percent of total turnover.

Clicks expanded its store base to 320 and opened a further 21 dispensaries to bring the national pharmacy network to 125.

Musica has entrenched its position as an entertainment brand and strong growth in DVD and gaming sales contributed to a 12percent increase in turnover.

The Body Shop increased turnover by 26percent, boosted by the opening of four new stores and customer response to its loyalty programme.

During the year, 25 Discom stores were closed, including six which were converted to Clicks and one to Musica.

Looking ahead, management said it was confident that the group's strategy would provide sustainable competitive advantage.

Retail space will be expanded by 5percent with the planned opening of 38 to 40 new stores.

The trading environment is expected to become more challenging next year and uncertainty continues to prevail over healthcare regulations.

Nevertheless, the group remains confident of delivering improvements in operating margin and continued cash generation.


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