Retail sales at Clicks Group increased by 13,4% for the 18-week period to January 3 2010, the company said on Monday.
In a trading update, it said this performance was due to “the continued strong trading results from the Clicks chain which grew turnover by 15,7%, driven by the growth in the health and beauty merchandise categories”.
“Retailers again experienced tough Christmas trading conditions, with consumers being cautious about spending their money,” group chief executive David Kneale said.
“Trading patterns over this period were also impacted by the shorter school holidays, with consumers tending to defer their purchases until the last minute.”
He said that against this background the group was pleased with the trading results, “which are in line with our expectations”.
He said Musica had performed in line with the trend of the previous financial year.
“CD sales were stable and Musica continued to gain market share.”
The Body Shop performed well considering the current trading environment, he added.
United Pharmaceutical Distributors’s (UPD) wholesale sales increased by 15,5% for the period. The reported increase of 8,8% was lower as the turnover for the comparative period included sales to third party distribution clients.
The company said these distribution contracts had been renegotiated so that UPD retained the income but no longer carried the debtors’ book, providing a cash flow benefit to the business.
Total sales for the group increased by 10% to R4,7-billion.
While retail trading conditions were expected to remain unchanged in the short term, management believed selling price inflation had peaked and would fall steadily over the remainder of the group’s financial year.
“Inventory has been tightly managed and stock levels are well under control.
“The group remains confident of delivering on its strategic objectives and financial targets outlined to shareholders in the 2009 annual report,” it said. — Sapa