Dis-Chem boost for pharmacists

Dis-chem will expand through franchising enabling black entrepreneurs gain entry into the market.

Pharmacy chain Dis-Chem would use its franchising expansion strategy to help retain young pharmacy graduates and assist black entrepreneurs to enter the market, the group said yesterday.

The privately owned chain of 34 stores, founded 30 years ago by Ivan Saltzman, has grown into SA's second-largest pharmacy group with projected turnover this year of R4bn.

Director Stan Goetsch said the strategy would allow pharmacists to own up to 49% of the store and would help in retaining skills in the industry. Retail pharmacists faced high barriers to entry and the move would create opportunities for these skilled individuals, he said.

Dis-Chem would consider allowing a pharmacist to build up his or her stake to 49% gradually if capital was a difficulty.

The company has been expanding for several years, opening six stores a year, but has opted for franchising to speed up growth, especially in smaller cities.

Dis-Chem partnered with Eric Parker of business consultancy Franchising Plus to design its model.

Parker said one reason for the shift to franchising was concern over a shortage of pharmacists.

“We lose many of our graduates to the overseas market and we are giving them the opportunity to stay and work in their own country.”

He said franchising was ideal for developing entrepreneurs, transferring skills and job creation all of which were needed in SA's economy.

Dis-Chem franchises are not limited to pharmacists. “The opportunity is equally attractive to retailers. The bulk of Dis-Chem's sales do not come from the dispensary but from retail departments,” Parker said.

Saltzman said Dis-Chem's growth was due to strong branding and a good product range at low prices.

Source: Business Day

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