Dis-Chem overhauls leadership and store layouts

Dis-Chem is overhauling its leadership and store layouts as the retailer moves past its founder-led era. According to BusinessTech, Ivan Saltzman and Stanley Goetsch have stepped down from executive roles while the group redesigns its branch network to feature centralized health hubs.

Ivan Saltzman and Stanley Goetsch Exit Executive Roles

The departure of Ivan Saltzman on 30 June 2026 marks the close of a business journey that began when he and Lynette Saltzman founded the company in 1978. Saltzman initially stayed on the board as a non-executive director before resigning from that position in July 2026. He had previously handed over the chief executive role to Rui Morais in July 2023.

Alongside Saltzman, longtime executive director Stanley Goetsch retired on 30 June 2026 after spending 42 years at the retailer. Goetsch is a qualified pharmacist who helped build the group’s operational core over more than four decades. Other members of the founding family have also stepped back. Lynette Saltzman left her executive director position in 2022 to concentrate on beauty operations, and their son Saul resigned as an executive director last year. Brothers Dan and Mark inherited billions of rand worth of shares in June 2025 and subsequently sold approximately R320 million worth between January and February 2026.

Rui Morais Reduces Executive Reports to Improve Accountability

Chief Executive Rui Morais is steering the company through an extensive organizational redesign. Dis-Chem stated that the restructuring is 60% complete and on track to finish by December. The overhaul reduced the number of executives reporting directly to Morais from 24 down to 14, creating sharper lines of accountability.

The corporate changes unfold against a challenging financial backdrop. During the six months ended 31 August 2026, group revenue increased by 8% to R22.97 billion, and retail revenue rose 8.2% to R19.55 billion. Yet operating expenses climbed 13.1% to R6.2 billion. This cost pressure pushed operating profit down 10.5% to R1.01 billion, while net profit dropped 12% to R581 million and headline earnings per share fell from 73.8 cents to 64.3 cents. Management tied much of this margin compression to heavy investments in its technology and innovation business, X, Bigly Labs. Even so, front-shop sales volumes grew 5.5%—well ahead of total market volume growth of 0.1%—and the Better Rewards loyalty program expanded active membership by 27% to 8.2 million customers.

Store of the Future Rollout Targets 50 New Branches Annually

Customers will experience the corporate shift most directly through a new retail format. After piloting the concept at Melrose Arch and Irene Village—where both locations achieved initial trading densities 25% higher than comparable early-stage stores under the older layout—management views the design as a permanent template. Morais stressed that Melrose Arch is not simply a concept store but the blueprint for how Dis-Chem intends to operate its outlets in future, BusinessTech reported.

The company plans to apply the format to all new branches starting in August 2026 and intends to renovate existing outlets based on their revenue and earnings potential. Dis-Chem aims to open at least 50 new stores annually and overhaul its entire fleet of 323 South African stores over the next five years. Trading has remained resilient following the recent reporting period, with group revenue growing 7.9% in the seven weeks leading up to 19 October 2026.

Centralized Health Hubs Reshape Customer Service

The physical redesign centers on a consolidated Health Hub designed to eliminate the fragmented service points found in older branches. Shoppers can visit a single central location to manage pharmacy queues, book clinic appointments, and consult financial advisers regarding medical, life, and funeral insurance.

The hub also consolidates administrative tasks such as identity verification, consent forms, payments, and loyalty registrations, with dedicated staff on hand to guide customers through the process.