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Group Targets

Financial targets

Clicks Group follows a three - year budget and planning cycle and sets medium - term financial targets to be achieved over each rolling three - year period. The group’s incentive remuneration structure is aligned to these targets. Following the completion of the three - year budget and operational planning exercise for the period to 2012, three of the targets have been revised upwards to reflect improved performance and prospects.

  Medium-term targets
2009 – 2011		 Performance in 2009 Medium-term targets
2010 – 2012
Return on shareholder's of interest  (ROE) (%) 35 – 40  42.3 40 – 50*
Shareholder's interest to total assets (%) 30 – 35  26.9 30 – 35
Return on total assets (%) 10 – 13 12.3 13 – 16*
Inventory days 55 – 60 54 55 – 60
Operating margin (%)      
• Group 5 – 6 5.8 5.5 – 6.5*
• Clicks 6 – 7 6.5 6 – 7
• UPD 2.7 – 3 3.4 2.7 – 3
• Musica 5 – 6 5.3 5 – 6
• The Body Shop 14 – 16 15.5 14 – 16
* indicates targets that have been revised      

The following assumptions have been applied in determining these targets:

  • Operational and trading performance comparable with the 2009 financial year
  • No deterioration in the trading environment
  • No increase in dispensing fees currently charged by Clicks
  • The operating margin of UPD does not include (a) any trading benefit from an increase in the single exit price of medicines in the forthcoming financial year or (b) the business gaining significant third party distribution contracts

Operating targets and plans for 2010


Store development and trading space
Net new stores planned for 2010 23 – 33  
• Clicks 20 – 30  
• Musica –  
• The Body Shop 3  
Clicks pharmacies (in new and existing stores) 30 – 40  
Refurbishments and relocations 20 – 25  
Total trading space growth of approximately 5 – 6%  

Capital expenditure (R’m)
Store development 137  
Information technology 46  
Other 42  
Total 225