Clicks launches KwaMakhi to tap into R900bn township economy

Johannesburg – Clicks Group has launched KwaMakhi, a new retail chain aimed at expanding its footprint in South Africa’s township economy and reaching consumers in communities that its traditional store format does not serve.

Now this is what a welcome looks like.

The faces, the smiles, the conversations, and everyone who showed up to make our first day something special.

A KwaMakhi experience made for the community it serves. 🛒

And this is only the beginning.#KwaMakhi #Tembisa pic.twitter.com/N6keAllLei

— KwaMakhi (@KwaMakhi_sa) August 27, 2026

The first KwaMakhi outlet opened in Thembisa on Thursday, with Clicks planning to roll out 10 stores by the end of the year, according to News24.

The launch forms part of the retailer’s strategy to tap into the estimated R900 billion township economy, while offering consumers greater convenience and access to everyday health, beauty and household products.

Clicks CEO Bertina Engelbrecht said the company had identified about 2,000 potential locations that could not accommodate its conventional store format.

Neighbourhood convenience

“We’re pushing deeper into the township economy,” Engelbrecht said, according to BusinessTech.

KwaMakhi stores will be considerably smaller than conventional Clicks outlets, generally measuring between 280 and 350 square metres. The format is designed around neighbourhood convenience and affordability, with products and pack sizes adapted to local consumer demand.

And just like that, the doors are open.

A snip of the ribbon, a big moment for KwaMakhi, and the beginning of something special right here eKasi.
Our very first store is officially open at Tembisa Mega Mart.

This is only the beginning, makhelwane.

KwaMakhi. Right here eKasi. pic.twitter.com/HGOlDsFR1f

— KwaMakhi (@KwaMakhi_sa) August 27, 2026

BusinessTech reported that the stores would follow an everyday-low-price model, with private-label products accounting for about 30% of the initial range.

The new chain also represents a departure from Clicks’ traditional shopping-centre model as the group seeks to compete more directly with established township retailers such as Shoprite and Boxer.

Clicks has budgeted about R30 million for the initial 10-store pilot, with the company planning to assess the concept before a wider rollout.

Store network 

The expansion comes as Clicks continues to grow its store network. The company reported strong financial performance in its latest results, with group turnover increasing 7.4% to R24.9 billion in the six months to February.

Now THIS is a starting line-up.

Siyanda Zwane, Thamsanqa Gabuza, Mpho Makola, and Lucky Legwathi pulled through for opening day, meeting the team, connecting with fans, and adding even more energy to the celebrations.#kwaMakhi #Tembisa pic.twitter.com/g5KdvpUfcZ

— KwaMakhi (@KwaMakhi_sa) August 27, 2026

Engelbrecht previously acknowledged that the retailer was operating in an increasingly competitive environment. In an interview reported by Moneyweb, she said the company’s results had been “muted”, partly because of “intensified competition” and problems related to its warehouse systems.

However, she added: “We are recovering and I think that’s really positive.”

The KwaMakhi rollout is therefore both a growth opportunity and a strategic test for Clicks as it seeks to broaden its customer base and compete for a larger share of South Africa’s township retail market.