Spar says it has acquired pharmaceutical wholesaler Aptekor Group, a move that expands the retailer’s healthcare footprint and marks the first step in building a national pharmaceutical network under its Pharmacy at Spar banner.
The group is positioning itself to compete in the country’s more than R500bn healthcare market. The acquisition gives it a firm foothold in the Western Cape’s pharmaceutical sector as it deepens its reach into healthcare distribution and retail.
Spar Health MD Jeremy Nicol said the deal is a strategic step in the group’s plan to make quality healthcare more accessible to communities across SA.
“Aptekor brings decades of experience and deep relationships within the healthcare ecosystem - strengthening our ability to support independent pharmacies and practitioners through trusted service, reliable supply and a national brand that South Africans already know and trust.”
The Pharmacy at Spar network includes 125 pharmacies nationwide with plans to grow to 250 stores within three years. The company said the Aptekor deal forms part of the first phase of its wholesale expansion strategy, with a similar acquisition in KwaZulu-Natal now in advanced stages.
Spar’s expansion comes as SA’s healthcare sector, worth more than R500bn annually, continues to evolve. According to investment managers at Perpetua, the market is almost split evenly between the public and private sectors, with about 9-million South Africans covered by medical aid. Though growth in private medical scheme membership has slowed due to economic pressure, healthcare utilisation is rising as members age and demand for accessible services increases.
“The healthcare industry in SA is a two-tier system comprising both public and private sectors. SA spends just more than R500bn annually on healthcare, which is about 8% of GDP. This amount is roughly evenly divided between the public and private sectors,” Perpetua said.
Recently, the country’s major retailers have also moved into healthcare as they diversify their offerings, moving from traditional retail to other sectors to unlock value.
Retailers are diversifying beyond traditional retail by expanding into e-commerce, offering fintech and financial services, and targeting the informal market. They are leveraging omnichannel strategies, data analytics and payment solutions to adapt to changing consumer behaviour and increase market share.
Clicks leads the sector as the top pharmaceutical wholesaler. Dis-Chem follows with a focus on wellness and digital innovation. Shoprite runs more than 140 MediRite pharmacies, steadily growing its presence. Meanwhile, Pick n Pay exited pharmacy retail in 2021 after selling its 25 stores to Clicks.
