Shoprite Well, well, well...
Shoprite has announced the acquisition of one of SA’s largest pharmaceutical wholesalers, Transfarm, in a move which will help it grow the already burgeoning MEDI-Rite arm of the business. MEDI-Rite currently has over 100 stores, and the plan is to open another 80 – 100 more in the next twelve months. The purchase of Transfarm, which turns over up to R200 million per month, will bring the benefits of centralised purchasing – like better availability and lower prices – to the Big Red One, according to Mr James W. Basson, CEO. It will also, no doubt, put the wind up competitors like Dis-Chem and Clicks, who purchased their own wholesaler, UPD, back in ’03. MEDI-Rite is now the second biggest pharmacy group in SA.
Comment: Aggressive stuff in a sector which is rapidly becoming as consolidated as the grocery sector, to the undoubted detriment of the little guy.