Dis-Chem's plans for 2026 and beyond: New stores, a mobile app, building out the new loyalty program

Dis-Chem has outlined a string of ambitious initiatives for its 2026 financial year and beyond, including opening 32 new stores, the launch of a “Store of the Future Concept” early in 2027, and a new mobile app midyear.

Other initiatives include expansion to reach the 137 000 square metre retail space target, refinement of its promotional mechanisms aligned with the recently launched Better Rewards loyalty programme; and deepening customer engagement through data-driven insights and partnerships, including the Capitec collaboration.

These plans were outlined in the JSE-listed pharmacy retail chain’s results for the six months to August 31 that were released Thursday. Group revenue increased by 8.7% to R21.3 billion and headline earnings per share increased by 9% to 73.8 cents.

“We identified eight areas of focus to deliver sustainable shareholder returns and the group has made pleasing progress in each of these areas. The launch of Better Rewards marks the next chapter in our journey to increase access to quality primary healthcare across a wide consumer base,” CEO Rui Morais said.

“This programme reimagines how loyalty can empower participation in a healthcare ecosystem, unlocking tangible value that customers can reinvest in their health. Supported by a broader portfolio of healthcare and financial services, Better Rewards is designed to compound good health decisions over time, rewarding individuals for the proactive management of their wellbeing and chronic conditions,” he said,

Dis-Chem’s X, Bigly Labs, also launched this year, is the innovation engine behind the transformation, said Morais. Its team applies technology, data, and deep customer insight to solve challenges and spearheads a model that strengthens customer-centred growth, he said.

Excluding a R130m ecosystem investment in the six-month period, core retail profit before tax increased by 25.8% year-on-year.

Ecosystem investments are aimed at transitioning the group from pharmacy retailer to integrated healthcare provider, and positioning the group to play the dual role of healthcare provider and funder.

Of the R130m, 60% was invested in establishing and operationalising X, Bigly Labs. The investment was aimed at generating returns in the core retail business over time. During the period, proof points included the launch of Better Rewards, a new analytically led promotional engine, and improvements in omnichannel retailing.

The remaining 40% supported Dis-Chem Life, with the majority being invested in marketing to establish the brand and in operating costs, to scale the business. Dis-Chem Life’s products are centred in the integrated healthcare ecosystem and are designed to encourage and reward policyholder health through Better Rewards.

The main reason for a strong result in core retail was the positive operating leverage relationship between retail total income and retail operating costs. Dis-Chem Health, included in core retail, was now contributing positively to the performance of the retail business.

Retail revenue increased 8.3% to R18.1bn, with comparable pharmacy store revenue up 5.4%. Seventeen retail pharmacy stores were opened in the six months, resulting in 302 retail pharmacy stores and 44 retail baby stores as at August 31, 2025.

Wholesale revenue grew by 11.1% to R16.8bn. Wholesale revenue to its own retail stores, still the biggest contributor, grew by 10.9% while external revenue to independent pharmacies and The Local Choice (TLC) franchises grew by 11.6%.

Independent pharmacy growth was 7.9%, attributable to both new customers and increased support from the current base, and TLC growth was 16.5% due to a combination of an increase in TLC franchise stores from 221 to 258, together with increasing support of the supply chain from existing TLC franchisees.

The wholesale business now services 1 608 independently owned pharmacies, representing approximately 85% of the independently owned pharmacy market.

For the two-month period to October 26, 2025, group revenue increased by 9.7% year-on-year.

“The consumer environment remains constrained, but our innovation pipeline and data-led approach are positioning us for long-term, sustainable growth.” said Morais.

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