Dis-Chem clarifies job security amidst declining retail staffing costs
JSE-listed pharmacy group Dis-Chem has insisted that it has not cut any jobs
Image: Karen Sandison, Independent Newspapers
JSE-listed pharmacy group Dis-Chem has insisted that it has not cut any jobs, despite its latest financial results showing a slight decline in retail staff costs.
The group posted solid results for the year ending February 2025, with revenue rising 8% to R39.2 billion and headline earnings per share increasing by 20%.
While the reduction in employee costs sparked questions about possible layoffs, the group told IOL these savings were not the result of job cuts.
"There are no job reductions, no role consolidations and no reduced working hours – using existing staff across more stores," the group said.
Dis-Chem explained that the cost containment measures under its Staffing Framework 1.0 focused on improving operational efficiency by adjusting staff ratios.
This included increasing the number of post-basic qualified (PBQ) employees who handle administrative tasks, enabling pharmacists to focus on clinical duties.
"The main drivers of cost containment of framework 1.0 were related to the following: Ratio change in our pharmacy category – this resulted in the addition of more resources to improve our dispensary service, driven by a ratio change between our pharmacists and our post-basic qualified resources (who are at a lower price point).
"This allows the PBQs to process the administrative requirements of capturing the script and for pharmacists to practice at the top of their scope, checking the dispense and engaging with patients.
"Redistribution of over-invested front shop staff – as a result of historical, decentralised decision–making–has led to many administrative resources being over-invested in certain stores. These resources (which were considered against a framework) were then moved into our new stores".
Looking ahead, the group added that it plans to introduce Staffing Framework 2.0, which includes adding a junior management level in new stores to reduce management costs.
"The introduction of a junior management level for our new stores, which reduces the management cost per store. Cost-saving mechanisms are not traditional job cuts.
"Prioritisation implies that we are ensuring that all services and products that we make available in our ecosystem are reimagined and delivered to our employee base with 'extra value', allowing them to understand the products and services and be ambassadors for the change in our brand positioning".
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