Say goodbye to Dis-Chem as you know it in South Africa
Dis-Chem is changing as you know it in South Africa, with the end of its traditional founder-led setup and the plan to roll out “stores of the future”.
The changes mark the end of an era for the retailer, which was founded by Ivan and Lynette Saltzman in 1978.
Ivan Saltzman and longtime executive director Stanley Goetsch have stepped down from their executive positions as the group restructures its management and prepares to overhaul its existing stores.
Saltzman resigned as an executive director on 30 June 2026, after initially remaining on the board as a non-executive director before resigning from that position in July.
Goetsch, who spent 42 years at Dis-Chem and is a qualified pharmacist, also retired as an executive director on 30 June.
The departures follow a gradual withdrawal of the founding family from the company’s executive leadership.
Saltzman stepped down as CEO in July 2023, with former chief financial officer Rui Morais taking over.
His wife, Lynette, left her executive director position in 2022 to focus on the retailer’s beauty operations, while their son Saul also resigned as an executive director last year.
Their other sons, Dan and Mark, inherited billions of rand worth of Dis-Chem shares in June 2025 as part of a broader restructuring of the founders’ holdings.
They subsequently sold approximately R320 million worth of shares between January and February 2026.
The leadership changes come as Dis-Chem attempts to improve its operating structure and prepare for its next phase of growth.
According to its interim results for the six months ended 31 August 2026, the group is 60% through an organisational redesign, which is expected to be completed by December.
The restructuring has reduced the number of executives reporting directly to Morais from 24 to 14, with the retailer saying the changes establish clearer accountability and allow management to make decisions more quickly.
New era
However, one of the most visible changes for customers will be the introduction of Dis-Chem’s new Store of the Future format.
The retailer piloted the concept at its Melrose Arch and Irene Village stores, with both reportedly achieving initial trading densities that were 25% higher than those of comparable early-stage stores under its previous format.
Morais stressed that Melrose Arch is not simply a concept store but the blueprint for how Dis-Chem intends to operate its outlets in future.
The new format will be introduced at all new stores from August 2026, while existing stores will be prioritised for renovations based on their potential to generate higher revenue and earnings.
Dis-Chem plans to open at least 50 new stores annually and revamp its entire existing store base over the next five years. The group currently operates 323 stores in South Africa.
A central feature of the redesign is a dedicated Health Hub, which Dis-Chem said will bring together services that were previously fragmented across different parts of a store.
Customers will be able to access pharmacy queues, arrange clinic appointments, and speak to financial advisers about medical, funeral, and life insurance products from a single central point.
The hub will also handle administrative functions such as bookings, identity verification, check-ins, consent forms, payments and loyalty programme registrations.
Dedicated advisers will help customers navigate the available services. The transformation comes despite a difficult financial period for the retailer.
Dis-Chem increased group revenue by 8% to R22.97 billion during the six months, while retail revenue rose 8.2% to R19.55 billion.
However, operating expenses increased 13.1% to R6.2 billion, contributing to a 10.5% decline in operating profit to R1.01 billion.
Net profit fell 12% to R581 million, while headline earnings per share declined from 73.8 cents to 64.3 cents.
The group attributed much of the pressure to increased investment in its technology and innovation business, X, Bigly Labs.
However, there were some bright spots in its latest report. Front-shop sales volumes increased 5.5%, compared with total market volume growth of just 0.1%.
Its Better Rewards loyalty programme also grew its active membership by 27% to 8.2 million, accounting for 86.1% of retail sales.
Dis-Chem said trading remained relatively resilient after the reporting period, with group revenue increasing 7.9% in the seven weeks to 19 October 2026.
Photos of the new ‘Store of the Future’ format
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