Retail giant targets growth in high-density communities with new neighbourhood store format

Clicks Group has introduced a new convenience retail brand, KwaMakhi, aimed at serving township communities and expanding the company’s reach into a previously untapped retail segment. The first outlet opened in Tembisa, Gauteng, on Thursday, while additional stores launched in Khayelitsha and Cravenby in the Western Cape on Friday.

According to Clicks Group CEO Bertina Engelbrecht, KwaMakhi represents a major growth initiative for the retailer. The new brand features its own identity, product assortment, private-label offering and store format designed specifically for neighbourhood convenience shopping.

Engelbrecht said the concept was developed because the traditional Clicks model is not suited to every location the company would like to serve. While Clicks stores are known for their health and beauty focus and require larger retail spaces, KwaMakhi outlets are significantly smaller and tailored to meet the needs of customers in densely populated communities.

At around 350 square metres, KwaMakhi stores are considerably more compact than standard Clicks outlets, which typically range from 550 to 1,500 square metres. Engelbrecht explained that the smaller footprint allows the company to establish more stores in areas such as Soweto or Alexandra, increasing its presence and accessibility within these communities.

The launch comes as township economies continue to attract growing interest from retailers. The sector is estimated to generate about R900 billion in annual economic activity, with consumer spending in lower-income market segments outpacing growth in the broader retail industry.

Engelbrecht said Clicks sees substantial long-term opportunities in the township market and believes KwaMakhi will enable the group to participate more effectively in that growth.

The stores have been designed to function as convenient neighbourhood shopping destinations, giving customers access to everyday essentials close to home and reducing the need for trips to larger regional malls.

The company says the concept is centred on community convenience, allowing residents to access products within walking distance while helping to keep consumer spending within local economies.

KwaMakhi is also expected to create employment opportunities, with each outlet employing roughly six people from the surrounding area. The retailer says its goal is to make everyday shopping more convenient, affordable and accessible.

Engelbrecht noted that property owners have responded positively to the new concept, with landlords showing a willingness to adapt retail spaces to accommodate the format. This support has strengthened the company’s confidence in the brand’s future expansion prospects.

The product range includes baby products, healthcare items, beauty and personal care products, as well as household essentials. Alongside familiar categories found in Clicks stores, KwaMakhi will also stock selected products not typically available in the retailer’s traditional outlets.

Drawing on the Clicks reputation for quality and value, the new brand will offer a dedicated private-label range while partnering with established suppliers to provide affordable products that customers can trust.

Rather than relying heavily on promotions, KwaMakhi will focus on maintaining consistently low prices, supported by selected special offers aimed at making essential goods even more affordable.

Although average customer spend per visit is expected to be lower than at a traditional Clicks store, the company anticipates that this will be offset by higher shopper traffic and transaction volumes.

Looking ahead, Clicks believes KwaMakhi has significant room for growth both within South Africa and potentially elsewhere on the continent. While the immediate priority is to establish the brand locally, Engelbrecht said the long-term vision includes opportunities to expand the model into other African markets.

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