Dis-Chem Chemical romance
We didn’t know that a third of a year was a thing, but Dis-Chem seem to have made it one, reporting that sales for the first four months of the financial year increased +11.1% to R6.4bn from R5.7bn in the prior period, also of four months. “The continuing increase in the fuel price along with the 1% increase in the VAT rate continues to put pressure on consumers which was evident in our April and May retail sales,” reports CEO Ivan Salzman, singing from the same hymn sheet as everyone else in retail. They’ve opened six new stores so far this year, adding R79m to the coffers, and are apparently pleased with their EDLP strategy, which, they say, has enabled them to win market share in all key categories. Although, like all pharmacists, they can’t stop bellyaching about the single exit price for drugs.
Comment: Nice work, this plucky recent addition to the JSE retail index, which we are quite sure will continue their growth trajectory – an innovative operation, clear on what makes them a go-to health and wellness shopping destination, supported by significant investment in distribution infrastructure to ensure its future growth.