Dis-Chem told TechCentral that it is tearing down its mobile app and the e-commerce platform that powers it, with a public launch planned for the end of 2026. The decision comes after a string of customer complaints about crashes, broken search and a delivery function that stops working, and it is meant to protect the group’s health and beauty franchise from the fast-moving grocery-to-door service Checkers Sixty60, whose parent has signalled that pharmaceuticals are next on its delivery agenda.
Yusuf Kaka, head of integrated digital engagement at X, bigly labs, Dis-Chem’s innovation and digital transformation unit, said an internal version of the new app is already being tested. “There was no rescuing the existing app,” Kaka told TechCentral. He added that the same assessment applied to the underlying platform: the app, not the website, was where the bulk of the customer-experience problems lived.
For a small business that supplies products to Dis-Chem, the rebuild matters because the retailer’s online channel determines how quickly and reliably inventory moves from warehouse to consumer. A smoother app could tighten the supply chain, reduce returns and give suppliers a clearer picture of demand. Conversely, a prolonged rebuild could mean a temporary dip in online sales, which may affect order volumes for local manufacturers and distributors.
Financial backdrop
Dis-Chem disclosed that the creation of X, bigly labs cost R330 million in the twelve months to 28 February 2026. The spend was described as front-loaded, with the expectation that it will turn net positive in financial year 2027. The investment hit earnings hard: group revenue rose 9.3% to R42.8 billion, but basic earnings per share, profit per share stripped of one-off items, fell 17.1% to 114.2 cents, and headline earnings per share, profit per share before tax, interest and one-off items, fell 17.3% to 113.7 cents. The final dividend was cut 42.8% to 15.92 cents. Stripping out the ecosystem investment and non-recurring items, group profit before tax was up 20.1%, the clearest measure of the short-term cost to shareholders.
The market reacted sharply. Dis-Chem shares closed about 8% lower on 29 May, trading just below R35 per share, down from R38.19 two days earlier.
Strategic focus
Kaka said the new app will be deliberately narrower than the current one, concentrating on a predictable delivery window rather than racing to the hour. Customers will choose a slot and Dis-Chem will fulfil orders inside that window. This shift mirrors the group’s 2021 launch of DeliverD, which promised a 7 000-item front-shop catalogue within 60 minutes and later added hourly slot scheduling and a 10 000-item range.
The rebuild also ties into store expansion decisions. Dis-Chem ended February with 316 retail pharmacy stores and 42 baby-care stores after opening or acquiring 31 pharmacies during the year. X, bigly labs now runs a commercial decision and intelligence team that models drive times from store to customer to decide where new sites would extend delivery reach, alongside store size and range. According to Kaka, the analysis shows the retailer can already reach most of the country within a reasonable window.
Regulatory hurdle
The toughest piece of the puzzle remains scheduled medicines. South African law requires a pharmacist to validate that a patient is entitled to a medication and has received counselling. Kaka described this as a “human in the loop” that must be built into the e-commerce process, not worked around. He called it the remaining complexity the team is working on, saying it is solvable but not easy.
Dis-Chem argues that this regulatory knowledge is a defensive advantage. While Checkers Sixty60, backed by Shoprite, plans to deliver pharmaceuticals, the grocery retailer does not have the same depth of pharmacy expertise. Shoprite’s own Sixty60 sales grew 34.6% in the six months to December, with adjacent businesses up 70.9%. Clicks, another large pharmacy chain with more than a thousand stores, has not pursued on-demand delivery with the same aggression, despite a dense footprint.
Implications for SMEs
For small-scale producers, independent pharmacies and logistics firms, Dis-Chem’s digital overhaul could reshape the competitive landscape. A more reliable app may increase order volumes for local brands that rely on Dis-Chem’s online shelf. At the same time, the emphasis on a predictable delivery window could level the playing field for smaller couriers that can meet scheduled slots but not ultra-fast promises.
Suppliers should watch the rollout timeline closely. If the new app launches on schedule, it could restore confidence in Dis-Chem’s online channel and stabilise demand forecasts. If delays occur, the retailer may face a temporary dip in e-commerce sales, potentially opening a window for rivals like Clicks or independent online pharmacies to capture market share.
In short, Dis-Chem’s decision to rebuild from scratch is a high-stakes gamble. The financial hit is already visible, the market reaction is sharp, and the regulatory hurdle is real. Whether the new app will deliver the promised reliability, and whether that reliability will translate into a competitive edge against grocery-driven delivery services, remains to be seen.
