Building a trusted, accessible healthcare network
The integrated healthcare retail and supply model provides a unique competitive positioning for the Clicks Group in South Africa. The group's strategy is driven by the objective to create sustainable long-term shareholder value through a retail-led health, beauty and wellness offering.
Clicks was again independently rated by customers as South Africa's leading health and beauty retailer. The pharmacy network was extended to 459 and the number of clinics was increased to 200. Two important trends in pharmacy continued to influence trading patterns. The first is the increasing use of generic medicines, which now account for 48.2% of pharmacy sales in Clicks, with sales growing by 18.6% in the past year. The second is the increasing shift to Over the Counter (OTC) medicines of sales growing 18.1%.
Clicks is actively switching patients to lower-cost generic medication and promoting over-the-counter medicines. Clicks also experienced good growth in front shop medicines, vitamins and supplements. This confirms the move to increased self-medication, as customers become more health and lifestyle conscious, opting for preventative rather than curative medicine.
The Clicks Store footprint expanded to 600 and believes to expand the store footprint in South Africa to 800 over the next decade.
In healthcare supply management, UPD consolidated its leadership position in wholesale distribution and grew market share to 24.7%.