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
Lean structure with industry leading metrics.
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
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