Clicks rolling out new stores despite COVID-19
Clicks is going ahead with plans to open 38 new stores and 40 new pharmacies despite uncertainties of how COVID-19 will impact the economy. The pharmaceutical retailer has however put dividends and share buybacks on ice, opting to preserve cash for tough times ahead. Clicks CEO, Vikesh Ramsunder joins CNBC Africa for more.
Thu, 23 Apr 2020 16:37:41 GMT
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AI Generated Summary
- Clicks defies economic challenges by proceeding with store expansion plans despite COVID-19 uncertainties
- The company's focus on financial prudence and operational efficiency underscores its commitment to long-term success
- Clicks remains open to potential acquisitions as part of its growth strategy in the retail market
Pharmaceutical retailer Clicks has announced its intention to forge ahead with plans to open 38 new stores and 40 new pharmacies, displaying resilience amidst the uncertainties surrounding the impact of COVID-19 on the economy. Despite the challenges posed by the pandemic, Clicks CEO, Vikesh Ramsunder, revealed in an interview with CNBC Africa that the company remains committed to its long-term growth strategy. The decision to expand comes at a time when many businesses are facing financial constraints and are forced to reevaluate their operations in response to the global health crisis. Clicks, however, has opted to defer dividends and share buybacks in order to safeguard its financial position during these unpredictable times. Ramsunder highlighted the unprecedented surge in sales experienced by the company prior to the lockdown in South Africa, emphasizing the overwhelming demand for hygiene and healthcare products as consumers stockpiled essentials in preparation for the restrictions. This surge in sales resulted in a significant boost in headline earnings per share, positioning Clicks as a defensive player in the market due to the continued demand for essential products. Despite the challenges posed by the pandemic, Clicks remains focused on its store expansion program, with plans to open both new stores and pharmacies across the country. While acknowledging the short-term impact of COVID-19 on trading conditions, Ramsunder reiterated the company's commitment to its long-term growth objectives. As part of its growth strategy, Clicks is open to potential acquisitions in the market, with a focus on integrating smaller businesses into its operations. The company's expansion plans signal optimism for the future, with a firm belief in the resilience of the retail sector. In the face of uncertain economic forecasts and the possibility of a prolonged lockdown, Clicks is taking a cautious approach to financial management while remaining agile in its response to market dynamics. The company's decision to proceed with store openings and potential acquisitions underscores its confidence in the recovery of the retail industry and its commitment to meeting consumer demand in a post-pandemic landscape. As Clicks navigates the complexities of the current economic climate, Ramsunder emphasized the need for strategic decision-making and flexibility in order to adapt to evolving market conditions. The company's focus on operational efficiency and prudent financial management reflects its determination to weather the storm and emerge stronger from the challenges posed by the global health crisis. With a steadfast commitment to growth and innovation, Clicks is poised to overcome the obstacles presented by COVID-19 and position itself for long-term success in the retail sector.