Shoprite is now competing with Dis-Chem as it launches a telemedicine service, something the pharmacy retailer has been investing heavily in over the past two years, though uptake has been slow.
Shoprite group’s Medirite pharmacy chain sent e-mails to Checkers customers on Wednesday explaining how to book virtual telephone or video consultations with doctors from their homes.
Medirite is partnering with a provider of clinics and virtual consultations called Healthcare Clinics SHinc, a firm which opened its first two clinics in two Checkers stores in White River and Mbombela in 2021.
This is yet another move by Shoprite to gain a greater share of consumers’ wallets.
Shoprite has been growing its Checkers footprint and winning market share from Woolworths, Pick n Pay and Spar as well as expanding into baby goods, pet stores and opening a handful of clothing stores. It also offers a low-income bank account, sells its own brand of mobile data and has made a foray into camping stores.
However, telemedicine remains small in SA and while Dis-Chem has invested heavily in it, only about 7,000 customers across SA use the virtual doctor consultation service at its clinics each month, according to Dis-Chem’s latest interim results to end-August.
These consultations are intended for minor ailments such as colds and stomach bugs, family planning or repeats of chronic medication. Doctors can provide sick notes and scripts after the consultations.
Shoprite owns 134 in-store pharmacies in existing Checkers and other stores and six stand-alone stores called Medirite Plus, with the first of these launched in 2022.
Dis-Chem has 258 stores and 54 Baby City retail stores that have clinics offering vaccinations for babies and antenatal care for mothers.
Clicks owns 711 stores that have pharmacies but has not expressed an interest in virtual consultations from its stores.
Analyst Casparus Treurnicht of Gryphon Asset Management has previously raised questions about whether Shoprite is diversifying excessively.
It’s part of the bigger plan to own the SA consumer”
— Alec Abraham
Telemedicine has had marginal uptake in SA, Sasfin analyst Alec Abraham said, adding: “It is not clear if Shoprite needs to be in this space, but it’s part of the bigger plan to own the SA consumer.”
The only way companies can grow in SA when there is no real economic growth is to win market share from rivals, make acquisitions or find customers in other areas.
Shoprite is now treading in an area where Dis-Chem has invested significantly as it tries to position itself as a healthcare destination where customers can pick up their medicine, see a nurse, or use the telemedicine platform for video consultations with a doctor.
Nurses at Dis-Chem can perform various basic medical tests and provide vaccinations. The pharmacy retailer owns software to help track whether customers are picking up their chronic medicines for the full duration of a six-month script and can contact them with reminders to improve medication adherence.
Dis-Chem has also bought shares in health insurer Kaelo and offers health insurance, which can provide an incentive for people to visit clinics at its stores.
The uptake of Dis-Chem’s telemedicine service has grown significantly, but off a very low base. In 2021, they were conducting fewer than 1,000 virtual consultations per month, with a peak of about 8,000 in May this year, possibly due to an increase in winter-related ailments. Nurse consultations, which are conducted in person and include family planning, average about 100,000 a month.
Dis-Chem owns The Local Choice (TLC) pharmacy franchise, of which there are 196 outlets. Of these, 142 have clinics and 63 include the video medicine service.
Dis-Chem’s advantage over Shoprite is if the video consultation is in store rather than at a home, a customer is likely to fulfil their script at the chain immediately afterwards.
Last week, Dis-Chem CEO Rui Morais said the company had held talks with provincial health departments about partnering with the state in providing vaccinations for infants and other medical services. The company believes it is well positioned to facilitate access to healthcare for all.
The private sector, including hospital groups and medical aid administrators, frequently offer the state assistance to improve healthcare for all South Africans, but this is often rebuffed.
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