How To Buy Shares

Dischem Vs Clicks

Why is Dischem making more money than Clicks despite
Clicks having more stores than Dischem

Dischem Revenue : R22 billion ( 2018)

Clicks Revenue :R14.5 billion (2018)

Number of Dischem stores : 149

Number of Clicks stores : 646

numbers of new stores Dischem builds a year ;20 year

Number of new Clicks builds a year ; 50 a year

Here is why dischem is making more money than clicks

Dischem has a concept called '' big box '' store format , you can probably fit in 3 clicks stores in 1 dischem big box store

Dischem uses a business model called '' white space model '' , this strategy focuses on this key business factors

-catchment area

-pe*******on

-site suitability,

-competition

-available network

if you dont have a business background let me make it easy for you to understand this white board strategy :Dischem will double its income from just Sandton because of this ''white space model''

Instead of building more stores , Dischem expands their existing stores into super big box stores

Dischem Stores are specifically designed to increase the shopping experience of their clients , in other words if you enter a Dischem store you will probably leave with something you didn't plan on buying

Dischem also makes it a habit of building their stores near healthcare centers

Clicks Model was to buy '' mom and pop pharmacies '' / privately owned pharmacies and converting them into their stores

Shares in clicks are R255 each

Shares in Dischem are R26 each

moral of the story

It is not how big or how many competitors do you have ,it is about using what you have to grow outwardly

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