Dis-Chem’s strategy is built on six pillars. The successful implementation of the strategy should result in a diversified earnings profile, improved shareholder returns and more value for stakeholders.
Our strategy is supported by substantial human capital, information technology and sound financial and capital management. The Group applies its strategy throughout the financial year, and the Board confirms that the strategy remains relevant and unchanged for the year ahead.
1
Increase in-store footprint
- Our target is to open, on average, 20 new stores per year, excluding acquisitions
- Step change to 40 stores per year from FY2025
- Secured 17 Dis-Chem and 3 Baby City stores for FY2024 so far
- We will add approximately 18 250m² of floor space
2
Drive secondary retail opportunities through innovation
- Retain first-to-market, innovative practices to deliver revenue diversification
- Enhance customer convenience through Dis-Chem Direct and our clinics
- Continue to enhance our e-commerce platform
- Increase contribution from speciality medicines
3
Drive revenue, margin and market share growth
- Continue to leverage the existing head office infrastructure cost base
- Negotiate better commercial terms with vendors
- Continue with our Everyday Low Price (“EDLP”) strategy to drive volumes and grow market shares
4
Achieve strategic advantage through our integrated supply chain
- Distribution cost savings
- Potential to expand into new geographies
- National footprint allows us to enter the pre-distribution market
- Potential industry consolidation
- Growth in the TLC franchise
5
Practice good corporate citizenship
- Focus on environmental protection
- Partner with government through the NHI
6
Create sustainable value for all our stakeholders
- Strong cash generation
- Drive customer loyalty
- Create strong brand recognition