As healthcare costs soar, Clicks’ customers increasingly choose generic medications because they are affordable. Sales of generics, including Clicks-branded and other pharmaceutical brands, grew by 10% in the year to August 2024. Generics comprise 59% of Clicks’ pharmacy sales by value and 69% by volume.
As the demand for budget-friendly health solutions grows, Clicks CEO Bertina Engelbrecht emphasised the group’s commitment to offering more accessible, affordable alternatives, particularly benefiting medical aid customers.
Clicks is set to invest R1 billion annually over the next three years, with R578 million directed towards launching new stores and pharmacies in the 2025 fiscal year and refurbishing 70–80 existing outlets. A significant portion of this expansion involves opening 40–50 new pharmacies, including specialised 24-hour locations under the new UniHealth brand, providing around-the-clock pharmacy services akin to Cape Town-based M-Kem, which Clicks acquired.
The UniHealth pharmacies will offer services, including travel clinics and services similar to those provided in hospitals, fulfilling a critical need in South Africa.
Meeting the demand amid rising health challenges
With chronic diseases on the rise, affordable generic medicines are more in demand than ever. Engelbrecht sees the market for generics doubling as consumers prioritise cost-effective healthcare options. Global projections by Statista estimate that the generics market, valued at $424 billion in 2023, could surpass $600 billion by the next decade.
Locally, Clicks’ retail pharmacy market share has climbed to 24.2%, while total retail sales grew by 11.7%.
Clicks recently resolved a long-standing legal dispute over its ownership of Unicorn Pharmaceuticals, which led to delays in the issue of new pharmacy licenses. Following the sale of Unicorn, the Department of Health resumed processing pharmacy licenses, allowing Clicks to expand its dispensary network without restrictions. Engelbrecht noted that this resolution accelerates the group’s plans to expand UniHealth hubs and specialised pharmacies nationwide.
Clicks’ loyalty programme, ClubCard, has proven pivotal in driving sales, with members accounting for over 87% of pharmacy transactions. Membership increased by 1.4 million to 11.8 million, reflecting Clicks’ strategy to reward and retain customers while delivering accessible healthcare.
The company’s market capitalisation stands at R90 billion, with share prices gaining 16% year-to-date, illustrating investor confidence in Clicks’ growth strategy.
Clicks strengthens role in South African healthcare
Clicks’ aggressive rollout of affordable generics and new pharmacy outlets marks a transformative phase in making healthcare accessible for South Africans. As Engelbrecht looks to broaden its reach with full-size and smaller-format stores, Clicks continues to address the shifting needs of a healthcare-conscious public. This expansion will support consumer choice and healthcare access as demand for generics and chronic illness management grows.