Clicks eyes GLP-1 weight-loss boom for next growth phase

Clicks Group CEO Bertina Engelbrecht is steering the retailer beyond its traditional pharmacy roots, betting on specialist health care, medical consumables and the fast-growing GLP-1 weight-loss market to drive its next phase of growth.

The health and beauty retailer, which increased its pharmacy market share to 24.7% and now operates 835 pharmacies and 225 clinics, is building new growth market to drive its next phase of growth.

Among the biggest opportunities, according to Engelbrecht, is the rapid growth of GLP-1 medicines, which are used to treat diabetes and are increasingly prescribed for weight management.

Patients pay between R2,000 and R3,000 a month for these treatments, limiting access for many consumers. Engelbrecht believes broader adoption will follow once generic alternatives receive regulatory approval and prices fall.

When the price dies down significantly, let’s say to 30% maybe, over the two-to-three-year period, then you’ll get more people using it specifically for weight loss.

The move forms part of Clicks’ strategy of expanding across the health-care value chain through specialist pharmacy business UniCare.

Clicks is trialling an on-demand pharmacy service that allows customers to order over-the-counter medicines for delivery rather than travelling to a store.

The group aims to increase online sales from less than 2% of turnover currently to about 10% over the medium term.

While health care remains the primary focus, Clicks is also pursuing selective opportunities beyond South Africa. The group has secured a master franchise agreement for Botswana and is close to finalising a similar arrangement in Mauritius.

Clicks is also looking to extract greater value from its beauty portfolio, which includes The Body Shop, Sorbet and ARC.