Clicks Group Strengthens Men’s Grooming and Private‑Label Offerings
In response to shifting shopper habits and a crowded retail landscape, Clicks Group has intensified its focus on men’s grooming and private‑label ranges. The strategy aims to protect margins, attract younger consumers, and grow market share by leveraging both trusted global brands and the retailer’s own label.
Bro Nation: Turning Customer Insight into a Growth Engine
CEO Bertina Engelbrecht explained that the initiative began after analysing the customer profile revealed a significant gap in male shoppers. “Men came to us and asked, ‘Where is the focus on men’s grooming?’” she said. This feedback sparked the creation of Bro Nation, a male‑focused campaign that has evolved from a one‑off project into a core pillar of Clicks’ personal‑care portfolio.
The tangible impact is already evident. The Sorbet Man range, launched under Bro Nation, recorded a 29 % increase in sales for the six months ending February 2024 [1]. This growth demonstrates how a targeted approach can convert insight into measurable revenue.
BroScape: A Dedicated In‑Store Experience
To simplify the shopping journey for male customers, Clicks introduced BroScape, a dedicated men’s grooming section that consolidates:
- Beard care
- Shaving products
- Skin care
- Hair care
- General grooming accessories
Engelbrecht noted that men tend to prefer a “hunter‑gatherer” approach—entering the aisle, picking what they need, and exiting quickly. By grouping related items together, BroScape aims to improve conversion rates and increase average basket size.
Appealing to a Younger Demographic
ClubCard data shows that Clicks’ loyalty programme is the most widely used among 18‑ to 24‑year‑olds in the mass market [2]. Engelbrecht highlighted that personal hygiene and appearance are especially important to this age group, making men’s grooming a natural entry point for deeper engagement with younger shoppers.
Hybrid Brand Model: Global Names Meet Private Label
Rather than choosing between national brands and its own label, Clicks employs a hybrid model:
“We offer a broad spectrum—trusted brand suppliers alongside private‑label ranges where customers already trust our quality,” Engelbrecht stated. This approach allows the retailer to cater to varied price sensitivities while maintaining control over margins.
Private Label as a Margin Protector
Private label remains a cornerstone of Clicks’ broader strategy. In the six months to February 2024, the group sold 110 million units of private‑label and exclusive brands [3]. Despite a modest 4.6 % growth in private‑label sales during the period—attributed to supply‑chain disruptions from the new inventory‑management system—other categories showed strong performance:
- Clicks Expert ranges: +35 %
- Clicks skincare collections: +11 %
- Smartbite foods: +40 %
- Clicks footcare ranges: +75 % following range expansion and reformulation
Engelbrecht emphasized that these locally produced ranges support differentiation, localisation, and margin stability amid competitive pricing pressures.
Expansion Plans and Financial Outlook
Looking ahead, Clicks intends to open 40 to 50 new stores and a similar number of pharmacies in fiscal 2026, while piloting ten concept stores. A total investment of R1.3 billion is planned, with 53 % earmarked for store openings, renovations, and pharmacy launches [4].
Half‑year results released on Thursday showed a 7.4 % rise in revenue to $24.9 billion [5]. The group forecasts diluted earnings per share growth of 4 % to 9 % for the year ending August 2024, cautioning that a constrained retail environment and global geopolitical tensions could weigh on South Africa’s economic outlook.
Analyst Perspective
Sean Culverwell, an anchor investment analyst, noted that interim results were slightly better than expectations but described the full‑year forecast as disappointing due to rising geopolitical risks, cost pressures, and execution risks surrounding the new inventory system. He highlighted strong pharmacy growth and margin support from private‑label expansion as positives, while flagging rising inventory‑system costs and potential margin pressure from investments in life‑insurance and X BiglyLabs as concerns.
[1] Clicks Group internal sales report, Sorbet Man range, six months to February 2024.
[2] Clicks ClubCard loyalty programme analytics, 2023‑2024.
[3] Clicks Group private‑label unit sales, six months to February 2024.
[4] Clicks Group capital expenditure guidance, fiscal 2026.
[5] Clicks Group half‑year financial results announcement, Thursday, 2024.
