Our Business Model Strategy

Dis-Chem’s vision is to be the leading retail pharmacy in South Africa.

The Group aims to continue growing market share across all categories by focusing on customer relationships and in turn building the Dis-Chem brand. It strives to maintain its category leadership by always being responsive to consumer preferences and trends.

Dis-Chem’s strategy is to use its dispensary-led footfall to generate revenue from its front shop. The destination format drives superior trading densities and customer loyalty. The group combines defensiveness- being a non-discretionary pharmacy- with high growth- expansion opportunities.

Our business model 

Destination format with loyal customers

Our large product range and pharmacy- led approach drives our customers loyalty

Operating efficiency

Lean structure with industry leading metrics.

Significant infrastructure

Well invested infrastructure with capacity to cater for medium term store expansion

Significant wholesale opportunity

Ability to leverage existing infrastructure to capture extra volume and serve independent pharmacies

Significant long-term growth opportunities

Expanding markets with yet to mature stores. Ability to consolidate independents market plus large whitespace opportunity

Founder lead management team

We are entrepreneurial & have a clear vision for the business. We have invested in our culture and have our interests aligned with new shareholders

Our strategies

Our strategies include

  • Increasing Dis-Chem’s store footprint
  • Driving secondary retail opportunities through innovation
  • Driving margins by leveraging Dis-Chem’s existing head office cost base
  • Expanding CJ Distribution

Key risks to our strategies include regulatory changes, increased competition from existing players and changes in the economic environment.

Our SWOT analysis

  • Experienced management team
  • Defensive positioning
  • Strong product offering and wide range
  • Sourcing and logistic expertise
  • Strong supply chain
  • Strong loyalty scheme
  • Lower gross margin in the dispensary category
  • Value extraction from the new CRM system
  • Store growth
  • Growth in e-commerce 
  • Weak economic environment impacting consumer spending
  • Weaker ZAR putting pressure on costs
  • Regulatory risks
  • Supermarkets becoming more competitive