Publications
Partners
Johannesburg - Clicks Group [JSE:CLS] on Tuesday reported a 16.8% increase in sales, off a high base, for the 18 weeks to January 2011, as the brand continued to gain market share in its core merchandise categories.
Comparable store sales grew by 13.6%. Clicks achieved strong real growth of 12.7%, with selling price inflation of only 0.9%.
Total retail sales increased by 14.2% and by 11.4% on a comparable store basis.
The group said that Musica continued to gain market share over Christmas although sales for the period declined by 2.1% as inflation reduced to -0.4%.
"Gaming and lifestyle merchandise showed good growth while CD sales slowed mainly due to limited new releases," it said.
The Body Shop increased unit sales although turnover declined by 5.3% as the business experienced selling price deflation of 10.1%.
Group chief executive David Kneale said a feature of the reporting period was the rapid decline in selling price inflation, which measured only 0.6% for the retail businesses in the period compared to 8.9% in the prior year.
"In this lower inflationary environment we are pleased with our trading results, particularly the performance of the flagship Clicks chain which accounts for over 88% of the group's retail sales," he said.
UPD, the group's pharmaceutical wholesaler increased turnover by 6.5% as the market slowed as a result of lower inflation and the faster growth in sales of lower value generic medicines.
Total sales for the group increased by 9.5% to R5.1bn, with inflation declining from 9.4% to 1.8%.
Clicks Group's results for the six months to end February will be released on or about April 14.
