Sharenet Sites 
Sharenet Sites
Voluntary update on impact of civil unrest
Clicks Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1996/000645/06
JSE share code: CLS
ISIN: ZAE000134854
CUSIP: 18682W205
LEI: 378900E967958A677472
(“the group”)
VOLUNTARY UPDATE ON IMPACT OF CIVIL UNREST
The civil unrest and destruction in KwaZulu-Natal (KZN) and Gauteng last week
impacted the group’s stores, pharmacies and distribution centres while also
limiting the provision of essential healthcare services in the midst of the third
wave of the COVID-19 pandemic.
At the peak of the violence on Tuesday last week, 339 Clicks and 26 The Body
Shop stores were closed as a precautionary measure to protect employees and
customers and to limit potential losses.
A total of 54 stores were looted and vandalised, representing 6% of the group’s
store base. As at 22 July 2021, 7 of these stores have already been reopened.
38 of the 47 stores that remain closed have pharmacies.
The unrest also impacted the COVID-19 vaccination programme, with 127 Clicks
vaccination sites being forced to close during last week and currently 15 remain
closed. Clicks is now operating over 280 vaccination sites nationally.
The Clicks and UPD distribution centres in KZN were both looted and damaged.
Business continuity plans were implemented to ensure continued supply to
customers in KZN through the Clicks distribution centres in Centurion and Cape
Town and the UPD distribution facilities in Johannesburg and Port Elizabeth.
Owing to the initial disruption to road transport networks, medicines were flown
from Johannesburg to Durban to supply the hospital groups across KZN.
The distribution centres are currently being cleaned and repaired before being
replenished. Management expects the UPD distribution centre to be operational
by Monday, 26 July 2021 while the Clicks distribution centre, which sustained
minor fire damage, is expected to be operational in the first week of August 2021.
The group has adequate South African Special Risks Insurance Association
(SASRIA) and general insurance cover for material damage to assets, stock and
business interruption. Additional costs have been incurred for private security
services to protect the distribution centres as well as air transportation costs to
supply medicines from Johannesburg to UPD customers in KZN. These costs are
not expected to be material to the group and will be disclosed in the year end
results reporting.
The operations teams are currently assessing the extent of the damage together
with the group’s insurers. It is too early to quantify the damages or the loss of
sales due to store closures.
The group has adequate cash and borrowing facilities available to manage
liquidity requirements during the recovery and rebuilding phase.
The board extends its sincere thanks to all the employees, stakeholders and
service providers involved in ensuring the continued supply of merchandise and
medicines, protecting the group’s distribution facilities and for their support in
restoring the group’s operations.
Cape Town
23 July 2021
Sponsor
Investec Bank Limited
Date: 23-07-2021 12:07:00
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