New Clicks Holdings Limited Annual Report 2003 Seven year review
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Overview of Group Strategy

“The focus on health, beauty and lifestyle products will now be extended to include pharmacy.”

Group profile
New Clicks Holdings Limited is a specialist retail group with more than 1 200 stores across its operations in southern Africa and Australia. The group has been listed on the JSE Securities Exchange South Africa since March 1996 and is quoted in the General Retailers sector.

The group focuses on the retailing of health, beauty and lifestyle products and services. It operates an advanced supply chain management infrastructure, and its centralised shared services model allows for multiple store ownership structures, namely company-owned stores, joint ventures and franchise operations.

The South African and Australian businesses of New Clicks are managed on an autonomous basis, with the leadership teams in each region being responsible for strategy and implementation. Post the announcement of the financial results, New Clicks advised shareholders that the group was in discussions to dispose of its Australian operations and at the time of completing the financial report, the transaction was not yet concluded.

The trading brands of New Clicks South Africa are Clicks, Discom, Musica, Compact Disc Wherehouse and The Body Shop. The group has extensive healthcare interests, including New United Pharmaceutical Distributors (UPD), a 56% interest in the Link Investment Trust (LIT), the franchise holder of Link and Link Max branded pharmacies, and an 80% interest in Intercare. The group has also provided loan funding to Purchase Milton & Associates (PM&A), which the group is in the process of acquiring.

New Clicks Australia trades under the Priceline, Priceline Pharmacy, House and Price Attack brands.

Business strategy
New Clicks has been positioned as world-class originators and distributors of a range of compelling and differentiated health, beauty and lifestyle retail products and services to multiple brand formats in a variety of ownership models.

The core elements of the business strategy are to:

  • Strengthen and rejuvenate retail brands;
  • Introduce pharmacy into the Clicks brand in South Africa;
  • Drive efficiency and productivity through shared services;
  • Focus on improving stock turns;
  • Boost profitability through improved turnover and margins; and
  • Create value for stakeholders.
 

Detailed commentary on the strategy and progress towards implementation is contained in both the chairman’s statement and the group leader’s review which follow later in this report.

   

 

Our values

  • Creating an environment for individual and organisational learning
  • Listening to and respecting the other voice
  • Delighting the customer
  • Stretching our performance to our common purpose
  • Being true to ourselves and others
  • Reaching decisions through dialogue
  • Earning leadership through vision and values
  • Committing to doing things properly

Brand strategy
New Clicks operates multiple brand formats within its focus on health, beauty and lifestyle products and services. Specific brands such as Clicks, Discom and Priceline provide a consolidated retail offering across these three categories, while others specialise in one category, including Musica, The Body Shop and House. Support services are centralised to create efficiencies for the group and this enables the brands to focus on their core functions.

  Health   Beauty   Lifestyle
           
Consolidated Retail Offer    
           
Pharmacy
 
   
           
Specialist Retail    
           
       
           
Wholesale        
           
           

 

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