Dis-Chem bagged half a million new customers in two months - but still disappointed investors
- Dis-Chem Pharmacies gained 500,000 new customers in October and November thanks to a promotional campaign.
- It released a trading update that showed sales rose by 10% to R8.6 billion in that time.
- But it wasn't enough for the market, which penalised its share price.
Dis-Chem attracted 500,000 new customers in October and November thanks to a promotional campaign.
The company released a trading update for the 22 weeks to start-February, which showed that its sales grew by 10% to R8.6 billion.
Key to its growth was a successful promotional campaign, which gave customers a miniature Disney figurine for every R200 spent.
Some 16 Micropopz mini-figurines could be collected, which proved to be a hit with customers - both young and old.
Collectors were automatically entered into a competition to win a holiday at Disney's Hollywood Studios in Florida.
Dis-Chem says many of the 500,000 new customers signed onto its loyalty programme.
But the company said that December was an "extremely tough trading month", with comparable store revenue down 2.5%, which was "well below our expectations". It has also been hit by a strike, with industrial action continuing.
Its share price tanked 6% on Thursday, hitting R24.96.
JSE:DCP Dischem's performance lower than expected for H2'19. Group sales up 10%yoy, with LFL sales growth of 3% and inflation of 1%. Volume growth lower than Clicks— Martin Harris (@MartinZA_trader) February 14, 2019
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