Dis-Chem lost R5.21 billion since no-whites letter Photos: Facebook/Dis-Chem
Dis-Chem has lost R5.21 billion in value since its CEO Ivan Saltzman’s letter, which placed a moratorium on employing or promoting white people at the retailer, became public.
DIS-CHEM SAID MANY REGULAR CUSTOMERS WITHDREW THEIR SCRIPTS
According to a report by Daily Investor, Saltzman revealed to investors that many regular Dis-Chem dispensary customers withdrew their scripts after the memo banning hiring white employees was leaked.
It furthermore said it was not all bad.
The Dis-Chem CEO said an analysis of customer data revealed that it also gained black chronic medication customers.
CUSTOMER DATA REVEALED DIS-CHEM GAINED BLACK CUSTOMERS
However, the number of clients lost following the moratorium on white employees exceeded the number of clients gained.
The moratorium’s impact was revealed as part of Dis-Chem’s trading update from 1 September 2022 to 5 February 2023.
The report showed a significant decrease in revenue growth which slowed to the lowest level since Dis-Chem was listed in 2016.
THE NUMBER OF CLIENTS LOST EXCEEDED THE NUMBER OF CUSTOMERS GAINED
Historically Dis-Chem’s average group revenue growth for this reporting period was 12.4%, significantly higher than the 8.7% over the last five months.
Last year, Dis-Chem withdrew an internal memo that called for a moratorium on hiring white people.
IN A STATEMENT, DIS-CHEM WITHDREW THE INTERNAL MEMO
In a statement released by the pharmaceutical retailer it said it regretted offending staff and customers.
It furthermore said it was committed to transformation.
“We regret the wording and tone of an internal memorandum that has been erroneously widely shared.
“We acknowledge that it did not follow our correct internal vetting processes, and steps have been put in place to ensure that going forward, relevant checks and balances are thoroughly duly performed.
“More importantly, we sincerely regret the offense and distress it caused so many people, including our staff and millions of loyal customers.”Dis-Chem
Credit – Taken from – Dis-Chem lost R5.21 billion since no-whites letter (thesouthafrican.com)
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