Festive trading was ”robust” at New Clicks Holdings flagship Clicks stores, the retail group said on Monday in a trading update for the four months ended December 2008.
During the period under review, retail sales increased by 11,1%.
Clicks stores delivered a ”particularly pleasing trading performance” which lifted turnover by 13,1% and by 11,2% on a same store basis, the company said.
”The strong value offer in Clicks continues to appeal to consumers who are under financial pressure.
”The smaller gifting ranges across the confectionery, toiletry and beauty categories were well suited to the needs of consumers at this time and resulted in robust festive season trading.”
Health (including dispensary) and beauty merchandise continued to be the major drivers of sales growth, the company said.
Clicks posted real sales growth of 7,4% after recording inflation of 5,7%.
However, New Clicks Holdings said the economic slowdown in consumer spending was evident in Musica which offered more discretionary merchandise.
”Musica’s performance was impacted by slower sales of DVDs and gaming software, although the business continued to record market share gains during the period.”
The Body Shop performed ”reasonably well” in the current environment, with sales of smaller gifting ranges again proving popular, the company said.
”Consumers were more discerning and conscious of how they spent their money over this Christmas period.
”In seeking out value for money, shoppers focussed on smaller, more practical gifts,” the company said.
It added that consumers left their shopping late and also appeared to have deferred purchases to the post-Christmas period and into early January.
The company said that United Pharmaceutical Distributors had seen sales growth slow to 3,7% during the period under review — however, this had been in line with expectations.
New Clicks Holdings said total sales for the group increased by 6,1% to R4,1-billion, with inflation for the 17-week period measuring 3,9%. — Sapa