Clicks Group says its turnover passed R50 billion for the first time in the year to 31 August 2026, but almost none of the 5.4% increase came from shoppers buying more. According to Clicks’ own results announcement, group turnover reached R50.4 billion, up from R47.8 billion, in what the company called an environment of constrained consumer spending and aggressive competitor discounting.
Price rises were almost all of the growth
The results presentation splits the retail picture clearly. Retail turnover rose 4.2% to R39.1 billion. Sales in comparable stores grew 1.8%, while retail price inflation was 1.5%, which leaves volume growth of 0.3%. Clicks also reports that price inflation slowed from 2.3% in the first half to 1.2% in the second, and that promotional sales now make up 47.1% of retail turnover.
The group’s pharmaceutical wholesaler, UPD, grew reported turnover by 9.2% to R20.4 billion, helped by preferred bulk distribution contracts. Much of that is sold to Clicks’ own pharmacies and is stripped out when the group total is calculated, which is why the group figure (5.4%) sits between the retail and wholesale growth rates.
Profit grew more slowly than the headline suggests
Profit for the year rose 2.6% to R3.33 billion, according to Moneyweb, from R3.23 billion a year earlier. Group trading profit increased 4.7% to R4.9 billion. Clicks reports headline earnings per share up 4.4% to 1,422 cents, and a total dividend up 4.4% to 925 cents per share. The final dividend is 667 cents, against 648 cents the year before, a rise of 2.9%.
The group trading margin slipped slightly, from 9.8% to 9.7%, and the total income margin from 31.1% to 31.0%. The 11% margin that some reports highlight is the retail division’s trading margin, not the group’s. The presentation shows retail at 11.0% against 10.5% a year earlier as reported, and notes that the 2025 retail margin was 10.8% when the unwind of Unicorn intragroup profit is included. Moneyweb used the 10.8% comparison. The distribution business went the other way: UPD’s trading profit fell 10.4% to R560 million and its margin eased from 3.3% to 2.7%. Clicks attributes this to a much lower single exit price increase for medicines (a maximum of 1.47% against 5.25% the previous year) and the loss of two bulk distribution contracts in the 2024 financial year.
Clicks generated R6.3 billion in cash from operations and returned R3.4 billion to shareholders, made up of R2.1 billion in dividends and R1.3 billion in share buybacks. It spent almost R1.2 billion on capital projects, and plans R1.45 billion for the 2027 financial year.
Where the stores, pharmacies and ClubCard stand
The group opened a net 41 stores and 60 pharmacies during the year, and lifted its retail pharmacy market share to 24.7% from 24.1%, based on IQVIA figures cited in the presentation. Chief executive Bertina Engelbrecht said 54.2% of South African households live within five kilometres of a Clicks store. Pharmacy was the fastest-growing retail category, with sales up 7.3%.
Not every category gained ground. Clicks’ front shop health share eased from 33.1% to 32.6%, and skincare from 43.3% to 42.3%. UPD’s wholesale market share fell from 26.2% to 25.4%.
The ClubCard loyalty programme has 13.1 million active members, who account for 84.2% of sales and received R976 million in cashback during the year. The programme was strengthened with an extra 10% discount on about 3,000 products, a joint fuel-cost campaign with Engen and FNB, and new affinity partners. Clicks’ announcement names Standard Bank and Absa; the presentation also lists Food Lover’s Market. We have covered the changes in more detail in Clicks adds instant 10% discount to ClubCard to match Dis-Chem rewards and Clicks adds Absa and Standard Bank rewards to ClubCard.
The 1,200-store target and new formats
Clicks plans to open 40 to 50 new stores in the 2027 financial year and remains committed to its medium-term target of 1,200 stores, per the company. It also plans 10 to 15 UniCare specialised pharmacies over the medium term and to expand KwaMakhi, a township convenience format piloted in four stores. The presentation puts the KwaMakhi market at about R900 billion a year and says the stores carry about 3,500 products. Our earlier report covers the KwaMakhi launch.
After year end, Clicks lifted its stake in premium beauty retailer ARC Store to 61%, paying R507 million for a further 35.3%. The deal still needs competition authority approval, as we reported in our ARC coverage.
Outlook and the numbers that do not match
Clicks expects the consumer to remain severely constrained while fuel costs are elevated and interest rates are higher, with low selling price inflation and heavy discounting continuing. A second single exit price increase of 2.88% took effect on 1 October 2026. The group says it is confident of meeting its medium-term targets. Those are forward-looking statements, not results.
One discrepancy is worth flagging. Moneyweb and BusinessTech both reported a footprint of 1,110 stores. Clicks’ presentation shows 1,031 Clicks stores and five UniCare stores, a total of 1,036 across convenience and destination formats, with 840 pharmacies and 225 clinics. We could not reconcile the 1,110 figure with the company’s own slides. Readers who need an exact count should rely on Clicks’ documents. The company’s press release also describes the year as one in which it opened its 1,000th store and 800th pharmacy, while the presentation refers to its 1,031st store and 835th pharmacy.
BusinessTech also reported earnings per share of 1,419.8 cents, up 4.2%, alongside headline earnings per share of 1,421.7 cents. The company’s own headline figure is the diluted 1,422 cents, up 4.4%. For businesses selling into South African households, the read-through is that volumes at a retailer with market-leading shares in its core categories are close to flat, and that profit growth rests on cost control, a loyalty base and new formats rather than demand.
More from the sector is in our Retail & Consumer section.
