strategy, objectives and targets

Our strategy

New Clicks is a specialist retail group

…  and our customers will view us as expert. This means they regard us as best for value, best for range and they trust us.

Focused on health, beauty, entertainment and homeware

… and these are the merchandise categories in which we aspire to be viewed as expert by our customers.

Operating through multiple formats

… to better serve the needs of our customers in the middle and upper income groups.

Organised to be cost-effective and efficient

… with a particular focus on supply chain management, information technology, property and financial management.

Strategic objectives for 2008

  • Continue transition of Clicks to a health and beauty specialist
  • Build UPD and Clicks pre-eminence in healthcare and pharmacy management
  • Continue Musica’s transition to entertainment and widen access to the brand
  • Build organisational capability to deliver sustained performance
  • Efficient capital and cash management

Medium-term financial targets

  Target   2007  
Return on shareholders’ interest 30% – 35%   24.7%  
Shareholders’ funding to total assets 32% – 37%   36.0%  
Return on total assets 9.0% –13.0%   9.3%  
Inventory days 55 – 60 days   57 days  
Operating margin 5.0% – 6.0%   4.8%  
Distribution cover 2.2 – 2.0 times   2.2 times