Pick n Pay entered the retail pharmacy space earlier than most, but this week admitted defeat.
Fast forward two decades later, and after the breakneck expansion of Clicks, Dis-Chem and others, the sector now seems far from under-serviced. Clicks said this week that 50% of the population now live within 6km of one of its more than 630 pharmacies. There’s more to this story Subscribe to News24 and get access to our
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Share price falls 4.65%, but bookbuild is oversubscribed. 08:45
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Cape Town s Canal Walk Shopping Centre, which is Hyprop s flagship super-regional retail property. Image: Supplied
Hyprop Investments, the owner of landmark shopping centres like Joburgâs Rosebank Mall and Canal Walk in Cape Town, launched and closed an equity raise on the JSE on Tuesday in a surprise move that brought in R358 million.
It announced the equity raise at around 08h30, noting that the bookbuild would be issued under Hypropâs general authority to issue shares for cash, as approved by shareholders at its annual general meeting (AGM) held on November 24, 2020.
“We welcome the opportunity to bring our experience in retail pharmacy to customers of Pick n Pay.”
Pharmacies don’t make money in their dispensaries, according to independent retail analyst Syd Vianello. While the back shop brings customers into the stores, the front shop makes the real money. So for Pick n Pay it’s a good deal when looked at this way and Clicks benefits from the additional licences, which are difficult to acquire.
“(This) makes total sense for PnP. They keep the sales of front shop products (toiletries, etc) and theoretically only lose the pharmacy sales, which are price and margin controlled, and when the direct labour cost is brought into the profit equation, I guarantee it runs at a loss,” Vianello said.
Steinhoff’s shares rallied to their highest since mid-February after indicative pricing for its European subsidiary came in at the top end of expectations.