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A year ago Dis-Chem paid R430 million for Baby City. It just opened a flagship clinic under that brand.

| On the move

Last year pharmacy retailer Dis-Chem acquired Baby City in a R430 million transaction. Now it has opened a flagship clinic inside one such baby goods retailer in Johannesburg – and it plans to do so in all 35 of them.

Staff Writer | Business Insider SAdischem store

Last year pharmacy retailer Dis-Chem acquired Baby City in a R430 million transaction. Now it has opened a flagship clinic inside one such baby goods retailer in Johannesburg – and it plans to do so in all 35 of them.

The flagship Baby City clinic is located in the BluBird shopping centre and is one of three already operating; the other clinics are situated in Table Bay and Kenilworth.

When the pharmacy and beauty retailer announced its plans to acquire Baby City, it said the baby products sector aligned with its pharmacy offerings. It sought to expand into the baby market, it said, which sees 900,000 babies born annually, and expand its products categories to add baby gear such as prams, car seats, clothing, developmental toys, among other essentials, in one specialised destination.

Between March and August, Dis-Chem said, Baby City had already contributed R326 million to group sales, citing that the baby category had been fully integrated into the group. For the 12 months to February 2020, the baby care products retailer generated revenue of R855 million.

The retailer is utilising Dis-Chem's clinic infrastructure to offer ante and post-natal clinic services aimed at babies and toddlers.

"The recently opened Baby City stores have a new look to enhance mom's and dad's shopping experience while continuing to offer the widest range of quality Baby products instore and expertise," Dis-Chem told Business Insider South Africa.

"We will be focussing on the full female health spectrum including family planning, pap smear, etc, ante-natal services and baby services like immunisation, baby milestones etc."

However, the clinics will not be limited to primary care but will still function and operate as the other Dis-Chem clinic offering all services found in a Dis-Chem-branded clinic.

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