| Tue 20 Jan 2009, 8:30 | | NCL - New Clicks Holdings - Trading Update |
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NCL
NCL
NCL - New Clicks Holdings - Trading Update
New Clicks Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000645/06)
JSE share code: NCL
ISIN: ZAE000014585
("New Clicks" or "the group")
TRADING UPDATE FOR THE FOUR MONTHS ENDED DECEMBER 2008
HIGHLIGHTS
- Clicks turnover up 13.1%
- Retail sales up 11.1%
RETAIL TRADING
Retail sales increased by 11.1% for the four months ended December 2008, with a
particularly pleasing trading performance from the flagship business, Clicks,
which lifted turnover by 13.1% and by 11.2% on a same store basis.
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 continue to be the major drivers of sales
growth. Clicks posted real sales growth of 7.4% after recording inflation of
5.7%.
The slowdown in consumer spending was evident in Musica which offers 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.
Consumers were more discerning and conscious of how they spent their money over
this Christmas period. In seeking out value for money, shoppers focused on
smaller, more practical gifts. They left their shopping late and also appear to
have deferred purchases to the post Christmas period and into early January.
UPD
The strategy adopted by UPD in the previous financial year to focus on its more
profitable and loyal customers has resulted in sales growth slowing to 3.7% for
the four month period, in line with expectations. This focus on more profitable
customers will enable UPD to drive further efficiencies from the business.
GROUP SALES
Total sales for the group increased by 6.1% to R4.1 billion, with inflation for
the 17 week period measuring 3.9%.
The business unit split is as follows:
Four Four Total Same store
months to months to sales sales In-
December December growth growth flation
2008 (Rm) 2007 (Rm) (%) (%) (%)
Clicks 2 431 2 149 13.1 11.2 5.7
Musica 398 397 0.3 0.1 5.0
The Body Shop 42 38 8.7 1.2 10.5
Total retail 2 871 2 584 11.1 9.4 5.7
UPD 1 616 1 558 3.7 0.8
Less intragroup
turnover (362) (255) 41.7
Total group 4 125 3 887 6.1 3.9
Retail trading conditions are expected to remain challenging in 2009 with
continued pressure on consumer expenditure, despite relief from the declining
fuel price and further expected cuts in interest rates. The group is, however,
confident of achieving the strategic objectives and financial targets set out in
the 2008 annual report.
The information contained in this trading update has not been reviewed or
reported on by the group`s auditors. New Clicks` interim results for the six
months to 28 February 2009 will be released on SENS on or about 30 April 2009.
Cape Town
20 January 2009
For further information contact
Tier 1 Investor Relations
Tel: +27 (21) 702-3102
Sponsor
Investec Bank Limited
Date: 20/01/2009 08:30:03 Produced by the JSE SENS Department.
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