Dis-Chem to open 21 new stores
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The company also notes in a statement issued on Friday that retail turnover gained 14.3 percent to R6.71 billion.
The company, which was worth R20 billion on debut, says stores grew 9.1 percent over the period, while inflation was 6.5 percent.
Over the same period, CJ Distribution, the group’s wholesale segment, increased turnover by 15.2 percent against sales price inflation averaged at 4.8 percent.
CEO Ivan Saltzman says “trading over the period was in line with our expectations. We are pleased with the trading figures coming out of the eight new stores opened over a ten-day period in November, specifically the trading of newly opened, convenience focussed format which traded at densities that were higher than expected.”
Saltzman adds its Northridge store in Bloemfontein was flooded as a result of heavy rains late last year and is being rebuilt with an expected opening in the second quarter of 2017.
Read also: Dis-Chem worth R20bn on debut
“Although this had no effect on our comparable turnover number, it did impact both the retail and group turnover numbers by 0.6 percent. Direct losses are fully covered by insurance.”
Dis-Chem, which wants to double its store base to 200 in the next five to eight years, will open 21 new stores in the 2018 financial year.
“This new space, together with maturing space within the existing store footprint, is expected to drive strong retail and comparable store growth in the years ahead, both of which are supported by the resilient health and beauty markets that we operate in.”
BUSINESS REPORT ONLINE