‘Adios to the mom-and-pop chemists’
“Dis-Chem and Clicks have cleaned up in the pharmaceutical industry and there are very few mom-and-pop stores left,”. wrote Business Times (16 May 2021)
According to Dis-Chem CFO, Rui Morais, Dis-Chem intends to “expand through organic growth and potential acquisitions where it makes sense”, citing the group’s acquisition of the independent 51-store Medicare pharmacy chain late last year as an example.
Meanwhile Clicks plans to rebrand the Pick n Pay pharmacy outlets it intends to buy. The price tag for the acquisition has not been disclosed. The group’s long-term goal is to open 900 stores in SA, with a pharmacy in every one.
The transaction with Pick n Pay might be small by Clicks’s standards but significant in that it is probably one of few such opportunities like it. Shoprite, Checkers and Spar, which both have scale in the pharmaceutical sector with a far larger footprint than Pick n Pay, are very unlikely to offload any of their outlets.