Clicks Group is sharpening its focus on men’s grooming and private label ranges as it looks to defend margins, attract younger shoppers and grow market share in an increasingly competitive retail environment.
At the centre of the strategy is Bro Nation, a men-focused campaign that has evolved from a one-off initiative into a key area of the group’s personal-care offering.
What began as a response to customer insights has now become a measurable growth driver, with the Sorbet Man range delivering a 29% increase in sales in the six months to February.
“When we looked at our customer profile, we realised we were significantly under-represented in terms of male customers,” said CEO Bertina Engelbrecht. “Men came to us asking: ‘Where is the focus on male grooming?’”
That insight led to the launch of Bro Nation — a platform designed to bring men together, elevate male grooming visibility in stores, and showcase products tailored to male needs. Clicks has rolled out BroScape, a dedicated men’s grooming section that consolidates beard care, shaving products, skincare, haircare and grooming tools in a single space.
The objective is to simplify the shopping journey while improving conversion and basket size. “Males are hunter-gatherers. They want to go straight to the aisle, get what they came for, and leave,” said Engelbrecht.
The move is also aimed at capturing a younger demographic. ClubCard data shows Clicks currently has the most-used loyalty programme in the mass market and, notably, the most used among 18- to 24-year-olds. “For anyone with young men in their families, you know grooming matters to them. They are highly appearance-conscious,” said Engelbrecht.
Clicks’ men’s grooming strategy is built on a hybrid model that combines leading global brands with fast-growing private label ranges. “Our approach is not either or. It’s about offering a broad spectrum ― trusted branded suppliers alongside private label ranges where customers already trust our quality,” said Engelbrecht.
For anyone with young men in their families, you know grooming matters to them. They are highly appearance-conscious.
— Bertina Engelbrecht, Clicks CEO
Private label remains a cornerstone of the retailer’s wider group strategy. In the six months to February, Clicks sold 110-million units of private label and exclusive brands, reinforcing their role in margin protection amid heightened promotional pressure.
While private label growth of 4.6% was muted during the period due to supply disruptions linked to the company’s warehouse management system rollout ― particularly as 60% of bath and body sales occur during peak trading ― performance outside this period has been strong.
Locally produced ranges continue to outperform, supporting both differentiation and localisation. Clicks Expert ranges grew 35%, Clicks skincare collections 11%, Smartbite foods 40%, and Clicks footcare ranges surged 75% following range expansion and reformulation.
“Private label and exclusive portfolio are a key strategic pillar,” said Engelbrecht. “They create a clear point of differentiation based on consumer trust in the quality of our brands and enable us to maintain total income margins despite competitive pricing pressures.”
Clicks, which has just over 1,000 stores, plans to open 40 to 50 new stores and 40 to 50 new pharmacies in the 2026 financial year, while it will pilot 10 concept stores. It will spend R1.3bn, with 53% of the investment allocated to the opening of new stores and pharmacies, as well as store refurbishments.
On Thursday, Clicks reported a 7.4% increase in half‑year turnover to R24.9bn to February, with retail sales up 5.4% and distribution turnover rising 13%, driven largely by stronger preferred bulk supplier contracts.
The group expects diluted headline earnings per share for the year to August to grow by 4% to 9%, warning that a constrained retail environment and global geopolitical tensions are weighing on South Africa’s economic outlook.
Anchor investment analyst Sean Culverwell said the interim results were slightly better than expected but described full‑year guidance as underwhelming, citing growing geopolitical risks, cost pressures and earnings downside risks, despite resilient operations. He noted strong pharmacy growth and margin support from private label expansion, but flagged rising warehouse system costs and execution risks as key concerns.
He said despite Clicks’ cost pressures from wage increases during the six months to February 6 months, “we believe they will still have the edge on margins over Dischem. Clicks’ front-shop private label penetration is a big differentiator but also, the funding sources behind Dischem’s new rewards programme remains opaque.
“While we acknowledge vendors and Capitec will front some off the bill, we still expect Dischem to be taking a margin hit in several promotional items. Furthermore, investments in the Life business and X BiglyLabs will keep margins under pressure over the short-term.”
Business Times
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