New Clicks posts positive results
The consumer spending crunch was not evident in the financial results of New Clicks.
The company, whose outlets include Clicks, Musica and The Body Shop, increased its earnings by 28percent in the year to August.
Group chief executive, David Kneale, pictured, said the results showed "the defensive nature of New Clicks" and market share gains for all of the group businesses.
Turnover from continuing operations increased by 12,2percent to R11,3billion while selling prices increased by less than 4percent.
Clicks continued its strong performance, and its health and beauty products did particularly well. Pharmaceutical sales passed the R1billion mark for the first time as Clicks grew its share of the retail pharmacy market to 10,7percent from 9,3percent. It opened 32 new pharmacies and now has 157.
UPD, the group's pharmaceutical distributor and wholesaler, also did well.
Musica experienced slower trading since February, and its turnover was up only 7,7percent.
The Body Shop also increased turnover strongly due to the opening of new stores and a loyalty programme.
Kneale said the group would embark on a fairly aggressive store opening focus in the new financial year.
He predicted continued real earnings growth if trading conditions did not plunge.