Dis-Chem’s success formula delivers 10% increase in revenue
Chief executive Ivan Saltzman said the weak macroeconomic environment in South Africa was unsupportive of business as constrained consumers continued to trade down resulting in smaller basket sizes.
“Our pharmacy focus, everyday low price strategy coupled with focused promotional campaigns and availability of choice for our customers enable us to drive strong footfall into our stores, this despite the negative impact of load shedding,” Saltzman said.
In spite of the positive trading update, its share price declined by more than 5percent on the JSE. The share slid to R22.54 a share, down from Tuesday’s closing price of R24, then closed 1.88percent lower at R23.55 on the JSE yesterday.
Saltzman said Dis-Chem’s increased focus on return on invested capital continued to deliver strong results with improved trade terms from their suppliers as well as more efficient inventory levels.
Source: iol.co.za