I visited a new Clicks store this week in Bassonia, south of Johannesburg, to buy Allergex syrup, an antihistamine.
Like a new broom that sweeps clean, the efficiency at the till was impressive: quick, smooth and professional.
It got me thinking.
In today’s world, a retailer cannot afford downtime.
Weak or offline systems mean lost income and profit, which could send the share price south, fast.
Remember what happened at a key Spar distribution centre in KwaZulu-Natal, where the retailer’s SAP system failure led to supply chaos, pricing problems and an estimated R2bn in lost sales.
An intended tech upgrade broke Spar’s operations instead of building them.
The thought prompted me to read the latest integrated report from Clicks Group, South Africa’s largest retail pharmacy chain.
Clicks has more than 990 stores and 780 pharmacies and is a recognised giant in health, beauty, and wellness.
Rival, Dis-Chem, is not standing still and is transforming its pharmacies into wellness centres. Medirite, which is owned by cash-flush JSE-listed retailer Shoprite, is becoming more prolific. Spar’s pharmacy network — Pharmacy at Spar — has 125 stores nationwide and plans to reach 250 before the end of 2028.
With efficiency and tech still on my mind, I was curious to find out if Clicks was upgrading its digital infrastructure.
I found that it was, and had committed “serious money”.
The latest Clicks annual report states: “Capital expenditure of R506m will be invested in retail systems and infrastructure, including the completion of the new Pharmacy Management System (PMS), implementation of the Warehouse Management System (WMS) at the Centurion and Durban distribution centres.”
A PMS is the digital brain of a pharmacy.
It manages prescriptions, patient records, and compliance. It makes care safer and service faster.
A WMS is the central nervous system of the supply chain.
It controls stock from the warehouse shelf to the store shelf. It ensures the right medicine is in the right place at the right time.
For a modern pharmacy chain, this is an investment in survival and future growth.
It’s about patient safety: reducing errors with accurate dispensing.
It’s about operational survival: cutting costs, waste, and stockouts.
It’s about competitive edge: enabling click-and-collect, delivery and personalised care.
It’s about future growth: building a platform for telehealth, chronic disease management and real wellness services.
Clicks CEO Bertina Engelbrecht and her team are making wise moves, and the investment in tech upgrades can create real shareholder value.
However, the shadow of Spar’s R2bn mishap looms large.
When upgrading tech, careful implementation is everything.
This cannot be a “big bang” rollout.
It must be phased, careful and tested in the real world of load-shedding, connectivity gaps, and diverse patient needs.
What is encouraging, according to the Clicks annual report, is that WMS for the retail distribution centre (DC) was successfully implemented at the Cape Town DC.
Rollout to the Durban and Centurion DCs is planned for completion this year.
Clicks has a unique opportunity to leapfrog old global systems by infusing modern, integrated, cloud-based tools.
But it must adapt them to South Africa’s reality: offline functionality, USSD updates for low-data users and a deep understanding of our two-tier healthcare market.
The goal is not just to be a better pharmacy.
It is also about being the most trusted, technologically enabled healthcare node in every community.
Clicks Group’s decisive R506m investment in a new PMS and WMS is a strategically brilliant move that positions the retailer as a future-ready, omnichannel leader in South Africa’s pharmacy space.
By modernising its digital core, Clicks is not just upgrading its tech — it’s building the essential infrastructure for seamless click-and-collect services, reliable delivery and personalised patient care, all while enhancing supply chain accuracy and efficiency.
Crucially, the phased and diligent approach to tech upgrades signals prudent leadership focused on sustainable execution rather than a risky “big bang” rollout.
This foundational investment equips Clicks to fend off intensifying competition and deepen engagement with its 13-million ClubCard members.
Ultimately, the investment in digital upgrades will spur the group’s next phase of growth by transforming its pharmacies into trusted, tech-enabled healthcare nodes.
Lessons must be learnt from Spar’s failure to implement SAP and Clicks’ diligent approach.
Clicks’ success will benefit shareholders and patients and enhance the trust we place in them every time we walk into their pharmacies — even for something as simple as a bottle of Allergex syrup.
• Lourie is the founder and editor of TechFinancials.
