New Clicks South Africa Errol Gray New Clicks

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New Clicks South Africa • Errol Gray

New Clicks South Africa • Errol Gray

New Clicks South Africa Today’s Focus • Revitalisation of Clicks • Profitability of PM&A

New Clicks South Africa Today’s Focus • Revitalisation of Clicks • Profitability of PM&A • Turnaround of Discom • Supply chain & efficiency of stock management Tomorrow’s Vision • Integrated healthcare offering • Established Discom African beauty & haircare offering • Revitalised Lifestyle category • High sales growth, low stock levels • Variety of multi-ownership models & formats

Clicks - Snapshot Feb 2003 Feb 2002 1 522 393 1 354 224 Sales

Clicks - Snapshot Feb 2003 Feb 2002 1 522 393 1 354 224 Sales R’ 000 Sales growth % 12. 4 12. 8 Comparable store sales growth % 8. 6 6. 1 Operating profit before interest & after allocation of net costs of support structures R’ 000 139 294 140 131 253 14 238 13 3 400 2 697 Number of stores Company owned Franchised Number of full-time permanent employees Trading area m² 138 960 132 124 Net increase in trading area for the period % 5. 2 4. 9 Weighted annual sales per m² R 20 450 19 133

Clicks HIGHLIGHTS • Health & Beauty continue to do well • Positive impact of

Clicks HIGHLIGHTS • Health & Beauty continue to do well • Positive impact of new leadership • Club. Card loyalty programme generating results • Datamining initiatives CHALLENGES • Revitalisation of brand & stores • Focus on Lifestyle category • Lifting staff morale • Operational efficiencies • Customer service • Increase size of Club. Card basket • Integration of healthcare

Clicks KEY ACTION PLANS • Store refurbishment • You pay less at Clicks -

Clicks KEY ACTION PLANS • Store refurbishment • You pay less at Clicks - used with other value propositions • Overhaul & repositioning lifestyle • Restructure operations & upgrade capability • Preparing to integrate healthcare • Improving value proposition • Stock availability • Leveraging Club. Card database • Injecting spirit into the team

Healthcare • • • HIGHLIGHTS PM&A – more effective & efficient Turnover of UPD

Healthcare • • • HIGHLIGHTS PM&A – more effective & efficient Turnover of UPD maintained UPD allows group to buy at better prices Interface between Clicks, UPD, PM&A & Link clearer & stronger Opportunity made available for pharmacies to buy at Clicks prices Success of Intercare pilot CHALLENGES • Further improvement of PM&A performance • Integration of pharmacy systems • Integration of distribution systems • Adding value to franchisees

Healthcare KEY ACTION PLANS • Integration of IT platform • Buying compliance systems •

Healthcare KEY ACTION PLANS • Integration of IT platform • Buying compliance systems • Focused implementation team • Preparing for legislation • Building on turnaround in PM&A

Discom - Snapshot Feb 2003 Feb 2002 391 732 368 063 Sales R’ 000

Discom - Snapshot Feb 2003 Feb 2002 391 732 368 063 Sales R’ 000 Sales growth % 6. 4 12. 1 Comparable store sales growth % 9. 5 4. 0 Operating profit/(loss) before interest & after allocation of net costs of support structures R’ 000 (2 214) (13 447) 178 2 193 7 1 232 1 362 Number of stores Company owned Franchised Number of full-time permanent employees Trading area m² 49 339 52 800 Net increase/(decrease) in trading area % (6. 6) 2. 3 Weighted annual sales per m² R 14 821 13 012

Discom HIGHLIGHTS • Improvement in efficiencies & cutting of costs CHALLENGES • Big steps

Discom HIGHLIGHTS • Improvement in efficiencies & cutting of costs CHALLENGES • Big steps in repositioning of African beauty brand • Turned-on team • Need to improve basket size • Success of hair salon pilot • Need to improve sales & margin • Sales in Lifestyle category

Discom KEY ACTION PLANS • Move into malls • Additional professional haircare opportunities •

Discom KEY ACTION PLANS • Move into malls • Additional professional haircare opportunities • Focused Lifestyle buyers

Music Division - Snapshot Feb 2003 Feb 2002 268 041 242 278 Sales R’

Music Division - Snapshot Feb 2003 Feb 2002 268 041 242 278 Sales R’ 000 Sales growth % 10. 6 26. 6 Comparable store sales growth % 8. 9 13. 4 Operating profit before interest & after allocation of net costs of support structures R’ 000 18 625 15 532 Number of company owned stores 137 Number of full-time permanent employees 558 506 Trading area m² 17 185 16 310 Net increase in trading area for the period % 5. 4 8. 6 Weighted annual sales per m² R 29 115 27 729

Music Division HIGHLIGHTS • Strong local music industry • Increasing market share • Supplier

Music Division HIGHLIGHTS • Strong local music industry • Increasing market share • Supplier partnering CHALLENGES • Drive to improve on last year • Impact of worldwide music trends KEY ACTION PLANS • Strong promotional programme • Broaden focus into entertainment

The Body Shop - Snapshot Feb 2003 Feb 2002 24 903 12 056 Sales

The Body Shop - Snapshot Feb 2003 Feb 2002 24 903 12 056 Sales R’ 000 Sales growth % 106. 6 n/a Operating profit before interest & after allocation of net costs of support structures R’ 000 3 357 1 004 Number of company owned stores 13 5 Number of full-time permanent employees 63 30 Trading area m² 802 227 Net increase in trading area for the period % 253. 0 n/a

The Body Shop HIGHLIGHTS • Successful niche market format • Introduction of new Colour

The Body Shop HIGHLIGHTS • Successful niche market format • Introduction of new Colour range CHALLENGES • Maturity of brand worldwide KEY ACTION PLANS • Continued rollout of stores

Shared Services HIGHLIGHTS CHALLENGES • Stock turn improvements continuing • Optimisation of supply chain

Shared Services HIGHLIGHTS CHALLENGES • Stock turn improvements continuing • Optimisation of supply chain efficiencies in stores • Restructuring categories starting to have impact • Reducing costs and continuing to add value • Financial services restructure on track KEY ACTION PLANS • Implementation of ERP system • Implementation of merchandise planning system

New Clicks South Africa Today’s Focus • Stock • Brands • Profitability Tomorrow’s Vision

New Clicks South Africa Today’s Focus • Stock • Brands • Profitability Tomorrow’s Vision • Healthcare • Lifestyle • African beauty & haircare