Dis-Chem gains market share in tough macro-environment Pharmaceutical giant Dis-Chem announced a healthy trading update for the first five-weeks of its 2021 financial year, with revenue growth up a staggering 12.1% compared to the prior corresponding period. Dis-Chem was one of the few opportunistic retailers during the pandemic, acquiring Baby City for R430m. Although the group produced solid top-line growth, many of the consumer behaviour trends continue to mount pressure on the company’s margins. The high margin health and beauty products continue to lag the non-discretionary lower margin products. Dis-Chem also noted the outperformance of its convenience centre located stores, whilst shopping malls remain an undesirable destination for the consumer. Despite the weak broader macroeconomic environment, the group has claimed market share in its core categories over the period. This is understandable given the group’s principle competitor, Clicks, having announced a worse-than-expected trading update at the end of January. – Justin Rowe-Roberts