Retail giant opening new stores in South Africa
Dis-Chem plans to expand its retail network across South Africa, with big plans for its new rewards programme as well.
In the six-month period from 1 March 2025 to 31 August 2025, Dis-Chem saw group revenue growth of 8.7% to R21.3 billion.
Retail revenue grew by 8.3% to R18.1 billion, with comparable pharmacy revenue growth at 5.4%.
During the period, 17 retail pharmacy stores were opened, resulting in 203 retail pharmacy stores and 44 retail baby stores.
Continued acceleration of space identification and new store openings are planned for the near future, the group said.
This includes 20 new stores already trading in FY2026, and 32 retail pharmacy stores are planned for the year.
The group is pushing a brand transition from being a retail pharmacy and healthcare store into an integrated primary healthcare provider.
Thus, its new outlets will have a ‘store of the future’ design to facilitate omnichannel retailing and healthcare delivery.
The stores will incorporate “ecosystem elements aligned to brand architecture,” with the first store trading in Q1 FY2027.
On top of its retail revenue, the group’s wholesale grew by 11.1% to R16.8 billion. Wholesale revenue to its own retail stores, its largest contributor, grew by 10.9%.
External revenue to independent pharmacies and the Local Choice (TLC) franchises grew by 11.6% over the period.
Independent pharmacy growth stood at 7.9% and was attributable to both new customers and increased support from the current base.
TLC growth was 16.5% due to a combination of an increase in TLC franchise stores from 221 to 258 and an increase in support of the supply chain from existing franchisees.
The wholesale business now services 1,608 independently owned pharmacies, representing about 85% of the independently owned pharmacy market.
New rewards
The Group added that launching its new loyalty programme, Better Rewards, marks the next stage of increasing access to healthcare and reducing its cost.
“This programme reimagines how loyalty can empower participation in a healthcare ecosystem, unlocking tangible value that customers can reinvest in their health.”
“Supported by a broader portfolio of healthcare and financial services, Better Rewards is designed to compound good health decisions over time, rewarding individuals for the proactive management of their wellbeing and chronic conditions.”
The group said that X, bigly labs by Dis-Chem, serves as the engine behind the rewards system change.
The group said that the team applies technology, data and customer insights to solve complex challenges. The launch of Better Rewards is also a proof point of innovation in action.
Via its rewards programme, customers are rewarded for filling their scripts and adhering to chronic treatments.
This reinforces the focus on prevention and protection rather than reaction.
“Better Rewards demonstrates how our purpose, technology, and scale combine to make quality healthcare more affordable, more accessible and more human,” the group said.
Looking at the key financials, basic earnings per share (EPS) saw a 9.6% increase to 73.9 cents. Basic headline earnings per share rose to 73.8 cents per share, a 9.0% increase.
The group’s interim dividend was also upped by 9% to 26.98 cents per share.
| Metric | 6 months to 31 Aug 2025 | 6 months to 31 Aug 2024 | % Change |
|---|---|---|---|
| Group revenue | R21.3 billion | R19.6 billion | 8.7% |
| Earnings per share | 73.9 cents | 67.4 cents | 9.6% |
| Headline earnings per share | 73.8 cents | 67.7 cents | 9.0% |
| Dividend declared per share | 29.42 cents | 26.98 cents | 9.0% |
