SUPERMARKET giant Pick n Pay has sold its retail pharmacy business to health and beauty retailer Clicks for an undisclosed sum.
The deal will include 25 in-store pharmacies that will be re-branded to Clicks.
Pick n Pay battled for traction in its pharmacy business, and it’s probably prudent for the supermarket giant to maintain its focus on its core retailing strengths.
Clicks is the largest retail pharmacy network in the country, and the acquisition will increase its national presence to 632 pharmacies. Dis-Chem is the other large player in the pharmacy space in South Africa with Shoprite/Checkers also holding a pharmacy segment.
The deal will see Clicks acquire the pharmacy licences and ethical drug stock, while all staff employed in the pharmacies will transfer from Pick n Pay to Clicks.
Vikesh Ramsunder, the CEO of Clicks, said the acquisition accelerated the group’s strategy of extending the convenience and accessibility of the Clicks pharmacy network. “Currently 50% of the country’s population live within six kilometres of a Clicks pharmacy and we aim to improve this over time as we get closer to customers.
Pick n Pay COO Adrian Naude stressed Pick n Pay had only held a relatively small number of pharmacies over the years. “We have recently set out our key strategic objectives in terms of future growth, and these do not include the development of a large pharmacy division.”