RETAIL: PHARMACIES

This sector comprises two Pharmacy chains: Dis-Chem is South Africa’s largest retail pharmacy in terms of market share of schedule 1-6 dispensary drugs, though Clicks has a larger store footprint. South Africa’s biggest pharmacy chains have embarked on a new “space war”, with Dis-Chem announcing a near-50% increase to its store base, and Clicks aiming for a 30% expansion over the next few years.

 INDUSTRY EXPOSURES

Business:  Despite the weak economy weighing on the consumer, this sector has benefited from pandemic anxiety and the trend towards increased medication of health. 

Environment: The Climate Change agenda has a relatively low impact on this sub-sector 

Society: Material issues include:

  • A data breach at Dis-Chem highlights the increasing scrutiny on protection of customer data

  • Clicks accused of anti-trust behaviour, producing and distributing its own medicine, unfairly exploiting its position against minor pharmacy chains

  • Critical shortage of pharmacists in the industry

  • marked difference in response to Broad-Based Black Economic Empowerment legislation by the two Pharmacy chains

Governance: Di-Chem is a family founded business listed three years ago, with the founder and patriarch stepping down after 45 years as CEO. 

In this report

  • Clicks (CLS)

  • Dis-Chem Pharmacies (DCP)

Price: $335

Included:

  • Full 13-page report covering the 2 Pharmacies in the Retail sector 

  • Introductory in-person consultation, scheduled at your convenience; learn more about how to link FarSight scores with your valuation process, and get up-to-date answers to specifics on each company under coverage.