Clicks introduces new township retail brand

Clicks has launched a new township-focused convenience retail brand, KwaMakhi, in a move that will see the health and beauty retailer compete more directly with spaza shops and discount retail formats such as Shoprite’s Usave and Pick n Pay’s Boxer.

The first KwaMakhi store opened in Tembisa on Wednesday, with two more set to open in Khayelitsha and Cravenby in the Western Cape. A fourth store is planned for Hammanskraal in September, and Clicks aims to have 10 stores operating by the end of the year.

Speaking at the launch, Clicks CEO Bertina Engelbrecht said KwaMakhi represented one of the biggest growth opportunities in the group’s history and was designed specifically for underserved township markets.

“KwaMakhi was created because we recognised that the traditional Clicks format cannot reach every community we want to serve,” Engelbrecht said.

Traditional Clicks stores require between 550 square metres and 1,500 square metres, while KwaMakhi stores are about 350 square metres, allowing the retailer to expand into neighbourhoods where larger stores are not viable.

The name KwaMakhi, derived from the idea of going to a neighbour for basic necessities such as sugar or milk, was deliberately chosen to distinguish the concept from Clicks.

“This is not Clicks,” Engelbrecht said. “KwaMakhi will not have a clinic or pharmacy. It is an everyday low-price business with a different customer proposition.”

The stores stock baby products, front-shop healthcare items, beauty and personal care products, household essentials and traditional medicines.

Unlike traditional Clicks stores, KwaMakhi offers a wider range of pack sizes, including single-unit and smaller packs aimed at cash-constrained consumers shopping frequently for daily needs.

Engelbrecht said the retailer has introduced the format in response to changing consumer needs and the growth of township economies.

Asked who KwaMakhi’s main competitors were, Engelbrecht said the group had benchmarked its prices against retailers such as Shoprite and Boxer but was also targeting the informal retail sector.

“We are competing with every spaza shop and spaza retailer,” she said.

While KwaMakhi does not sell food, it aims to attract customers through convenience, trusted products and affordable pricing.

The format is built around an everyday low-price model rather than the heavily promotional approach used by Clicks stores. The retailer has also launched a private-label range, which already accounts for about 30% of products on shelves.

Clicks expects basket sizes at KwaMakhi to be smaller than those at its core stores but believes higher transaction volumes will drive growth. Each outlet will employ about six people from surrounding communities.

Engelbrecht said KwaMakhi could eventually become a significant growth engine for the group beyond South Africa.

“We believe KwaMakhi has the potential to become far more than a South African retail concept,” she said. “While our immediate focus is on building a successful business locally, we see long-term opportunities for the model to expand into Africa.”