Clicks | Bucking the trend
Over the last year, new retail space became available because of the failure of large department stores, as well as fringe retailers, in the weak demand environment. In contrast, CLS's H1 '19 results show that the group has a defensive category mix and continues to gain share from independent pharmacies as well as traditional grocers. Stable LFL volume growth in H1 '19 of 3.5% has robust support from a still maturing store base (30% of portfolio yet to reach optimal trading densities). High volume growth and the inclusion of four new pharmaceutical distribution contracts over the last six months have offset the negative impact on margins of low 1% inflation during period. Group margins were 30bps higher yoy at 6.8%, which drove diluted HEPS growth of 13% yoy to 300cps.Clicks is an investment holding company. Through its subsidiary, Co. is engaged in providing health and beauty merchandise through a network of 657 stores, including 34 in the neighbouring countries of Namibia, Botswana, Swaziland and Lesotho. Co.'s subsidiaries cover the pharmaceutical supply chain from wholesale and distribution to retail pharmacy, as well as beauty and cosmetic products. Co. operates primarily in southern Africa. Co.'s operating segments comprised of Retail and Distribution. Co.'s brands are Clicks, Musica, The Body Shop, GNC and Claire's.
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