Dis-Chem’s Founder Era Ends as Retail Giant Unveils ‘Stores of the Future’

South Africa’s pharmacy and health retail giant is entering a new chapter with new leadership, store redesigns and an ambitious nationwide expansion strategy.

Dis-Chem is undergoing one of the biggest transformations in its history, marking the end of its traditional founder-led era and the beginning of a major overhaul of its stores and operating structure.

The changes follow the departure of founder Ivan Saltzman and longtime executive Stanley Goetsch from executive leadership positions after decades at the helm of the retailer.

End of an Era

Founded in 1978 by Ivan Saltzman and Lynette Saltzman, Dis-Chem grew from a single pharmacy into one of South Africa’s largest retail healthcare groups.

The company’s leadership transition has been gradual:

• Ivan Saltzman stepped down as CEO in 2023.
• Lynette Saltzman left her executive role in 2022.
• Saul Saltzman resigned as an executive director in 2025.
• Dan Saltzman and Mark Saltzman inherited significant shareholdings and later sold shares worth hundreds of millions of rand.

The retailer is now led by CEO Rui Morais, who has been tasked with driving the group’s next phase of growth.

Major Organisational Overhaul

Dis-Chem says it is approximately 60% through a comprehensive organisational redesign expected to be completed by December 2026.

The restructuring has streamlined management by reducing the number of executives reporting directly to the CEO from 24 to 14.

According to the company, the changes are intended to improve accountability, simplify decision-making and create a more agile organisation.

Introducing the ‘Store of the Future’

Perhaps the most visible change for customers will be Dis-Chem’s new “Store of the Future” concept.

The retailer has already piloted the format at its:

• Melrose Arch store
• Irene Village store

Dis-Chem reports that the pilot stores have achieved trading densities around 25% higher than comparable stores operating under the previous format.

Management says the Melrose Arch branch serves as the blueprint for future stores rather than a temporary concept.

New Health Hub Central Feature

At the heart of the redesigned stores is a dedicated Health Hub.

The new model aims to centralise services that were previously spread across different sections of a store.

Customers will be able to:

• Access pharmacy-related services
• Book clinic appointments
• Receive assistance with medical products
• Consult on funeral, life and medical insurance offerings
• Register for loyalty programmes
• Complete check-ins and administrative processes

Dedicated advisers will assist customers in navigating these services from a single location.

Ambitious Expansion Plans

Dis-Chem plans to roll out the new format aggressively across South Africa.

The retailer aims to:

• Open at least 50 new stores per year
• Renovate existing stores over the next five years
• Upgrade its entire network of 323 stores

The company says upgrades will be prioritised based on each store’s ability to generate higher revenue and earnings growth.

Financial Pressures Remain

Despite positive sales growth, Dis-Chem’s latest financial results show growing cost pressures.

For the six months ended 31 August 2026:

• Revenue increased 8% to R22.97 billion.
• Retail revenue rose 8.2% to R19.55 billion.
• Operating profit declined 10.5% to R1.01 billion.
• Net profit fell 12% to R581 million.
• Headline earnings per share dropped from 73.8 cents to 64.3 cents.

The retailer attributed much of the pressure to ongoing investments in its technology and innovation business, X, Bigly Labs.

Loyalty Programme Continues to Grow

One area showing strong momentum is the company’s Better Rewards programme.

Active membership increased by 27% to 8.2 million members, accounting for more than 86% of retail sales.

Dis-Chem also reported encouraging trading conditions after the reporting period, with revenue increasing 7.9% in the seven weeks to 19 October 2026.

As the retailer modernises its operations and reimagines its stores, customers can expect a significantly different Dis-Chem experience in the years ahead.