Retailers News South Africa

New Clicks lifts retail sales

Retailer New Clicks (NCL) reported on Tuesday that its retail sales had increased by 11.1% for the four months ended December 2008.

The flagship business, Clicks, lifted turnover by 13.1% and by 11.2% on a same store basis. Total group sales, though, increased by a lower 6.1%.

The company did note that retail trading conditions are expected to remain challenging in 2009 with continued pressure on consumer expenditure, despite relief from the declining fuel price and further expected cuts in interest rates.

The group is, however, confident of achieving its strategic objectives and financial targets.

Total sales over the four months to December 2008 were reported at R4.125 billion from R3.887 billion a year earlier.

"The smaller gifting ranges across the confectionery, toiletry and beauty categories were well suited to the needs of consumers at this time and resulted in robust festive season trading.

"Health (including dispensary) and beauty merchandise continue to be the major drivers of sales growth," said the company.

Clicks posted real sales growth of 7.4% after recording inflation of 5.7%.

"The slowdown in consumer spending was evident in Musica which offers more discretionary merchandise. Musica's performance was impacted by slower sales of DVDs and gaming software, although the business continued to record market share gains during the period.

"The Body Shop performed reasonably well in the current environment, with sales of smaller gifting ranges again proving popular," said the company.

Consumers were more discerning and conscious of how they spent their money over this Christmas period.

"In seeking out value for money, shoppers focused on smaller, more practical gifts. They left their shopping late and also appear to have deferred purchases to the post Christmas period and into early January," concluded the company.

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