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A New Challenger Approaches: Major Threat Looms for Clicks and Dis-Chem in South Africa

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SPAR’s Prescription for Growth: Doubling Its Pharmacy Footprint in a Competitive Market

The race for South Africa’s pharmacy customers is heating up, and a familiar name is making a major power play. The SPAR Group has officially shifted its health division into high gear, receiving the green light to acquire the Aptekor Group. This strategic move is the engine behind an ambitious plan to double its national network of pharmacies within the next three years, signaling its serious intent to compete for a larger share of the health and wellness market.

This isn’t just a simple store expansion. It’s a calculated acquisition that gives SPAR the wholesale muscle to support a rapid national rollout, transforming it from a grocery retailer with pharmacies into a formidable integrated health player.

The Building Blocks of a National Network

The acquisition of Aptekor is a masterstroke in vertical integration. Aptekor isn’t just a chain of pharmacies; it’s a major pharmaceutical wholesaler and courier service with a fifty-year history of supplying pharmacies, hospitals, and doctors across the Western Cape, Northern Cape, and Karoo.

By bringing this wholesale capability in-house, SPAR Health can now ensure a reliable supply chain and provide robust support services to its own stores and to independent pharmacists who choose to operate under the ‘Pharmacy at SPAR’ banner. This wholesale backbone is the critical first phase of a national expansion that already has plans for a Durban-based wholesaler to conquer the KwaZulu-Natal market.

The New Pharmacy Landscape in South Africa

SPAR’s aggressive move reshakes a market long dominated by a few key players. The pharmacy retail scene is currently a tale of two tiers. At the top sit the JSE-listed giants: Clicks, with a sprawling network of over 740 in-store pharmacies, and Dis-Chem, with 285 pharmacies. These are the established titans.

Then there are the grocery challengers. Shoprite’s Medi-Rite has been growing steadily, now standing at 144 outlets. Before this acquisition, SPAR trailed with 125 pharmacies. By aiming for 250 stores by 2028, SPAR is not just playing catch-up; it’s launching an offensive to firmly establish itself as the leading pharmacy provider within the grocery sector and a direct challenger to the larger specialized chains.

A Strategy Built on Partnership

A key part of SPAR’s strategy is its commitment to the independent pharmacist model. Unlike competitors who often own and operate their stores directly, SPAR’s plan involves boosting and supporting independent business owners. It provides them with the branding, retail operational support, and now, the wholesale infrastructure of the SPAR group, allowing them to compete effectively while maintaining their entrepreneurial spirit.

This partnership approach could be its secret weapon. By empowering local pharmacists within a trusted national brand, SPAR is betting that community connection combined with corporate scale will be the prescription for success in South Africa’s fiercely competitive pharmacy war. The battle for your medicine cabinet has just gotten more interesting.

 

{Source: BusinessTech}

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