Dis-Chem to open 21 new stores

The Dis-Chem pharmacy in Canal Walk mall, Cape Town. File picture: Henk Kruger

The Dis-Chem pharmacy in Canal Walk mall, Cape Town. File picture: Henk Kruger

Published Feb 10, 2017

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 Johannesburg – Dis-Chem, which listed last November, says

group turnover gained 13 percent to R7.32 billion in the 22 weeks to January

29.

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.”

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