Capitec deal gives Dis-Chem 550,000 new customers
Dis-Chem has recorded a massive increase in group revenue, driven by its new rewards programme, which partners with Capitec.
The group saw revenue growth of 10.1% in the 24 weeks leading up to 16 February 2026, with a significant spike since the introduction of the Better Rewards system.
The new rewards system offers an additional 5% off for qualifying brands for Capitec customers. This increases the instant discount from the base 10% to 15%.
“We experienced a solid trading performance during the period, notably on the back of the launch of our reimagined loyalty programme, Better Rewards, which launched on 21 October 2025,” said CEO Rui Morias.
“By applying technology, data and deep customer insights, the X, bigly labs team continues to challenge the status quo by further evolving the Better Rewards programme.”
Morias added that one of the main objectives was to increase the average discount level by driving boost penetration and identifying new funding channels to further invest in the programme.
He said that this will ensure the best-value and most representative healthcare retail offering in South Africa.
“Our ecosystem extends beyond the integrated healthcare ecosystem we’re building, to strategic partnerships like Capitec, where the Capitec boost is driving shared value for both brands and our shared customers.”
In the first 17 weeks of launch, the group saw R410 million in savings for customers. The growth in revenue has enabled the group to gain 0.8 percentage points of market share.
In the first 24 weeks of the period, retail revenue increased by 9.5% compared to the corresponding period, with volume growth of 5.0%.
It noted that the retail revenue for the 17 weeks under the Better Rewards programme increased by 10.4% compared to the corresponding period, with volume growth of 5.2%.
Under the Better Rewards programme, pharmacy revenue increased by 13.7% driven by increasing pharmacy boost engagement and high demand for GLP-1 drugs.
Revenue growth of participating Better Rewards brands increased by 19.4% with volume growth of
20.9%.
“The consistency of an always-on, health-relevant, lowest price basket is driving increased shopping frequency,” said the group.
“Non-participating Better Rewards brands are benefiting from the halo effect of the increase in shopper trips.”
The number of new shoppers who had not engaged with the Dis-Chem brand in the 12 months prior to the launch of Better Rewards increased by 550,000 shoppers.
Not just retail stores doing well
While the group operates 355 retail stores, comprising 313 Dis-Chem Pharmacy stores and 42 Dis-Chem Baby City stores, it has also seen strong performance in its wholesale business.
Wholesale revenue increased by 15.7% during the period compared to the corresponding period. Sales to the group’s own retail stores increased by 16.2%.
Revenue from external customers increased by 13.7%, with The Local Choice (TLC) revenue rising 14.2% and independent pharmacy revenue increasing 13.4%.
The group has 281 TLC franchise stores at period-end, up from 230 at the end of the corresponding period.
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