HealthPlus Pharmacy Group Business Plan › Section 4 › Products & Services

4.1 Pharmacy Services (Dispensary)

The dispensary is the operational and strategic anchor of each
HealthPlus store. Staffed by registered pharmacists and pharmacy
assistants in compliance with SAPC regulations, the dispensary provides
prescription dispensing, chronic medication management, generic
substitution counselling, and pharmacist-led patient consultations. All
operations comply with Good Pharmacy Practice (GPP) standards as
prescribed by the South African Pharmacy Council.

Dispensary services operate under the Single Exit Price (SEP) regime,
which standardises medicine pricing but limits margin flexibility. The
dispensing fee, currently structured as a fixed fee plus percentage of
medicine cost, provides the primary margin on prescription transactions.
HealthPlus will optimise dispensary profitability through efficient
inventory management, generic substitution maximisation, and high
prescription volume throughput.

4.2 Front-Shop Retail Categories

Front-shop retail is the primary margin driver, contributing an
estimated 48% of revenue at a blended gross margin of 38–42%. The
product assortment is curated across six core categories:

• Over-the-Counter Medicines: Analgesics, cold and flu remedies,
  digestive aids, allergy treatments, first aid supplies
• Vitamins, Minerals, and Supplements: Multivitamins, omega-3 fatty
  acids, probiotics, sports nutrition, herbal remedies
• Beauty and Cosmetics: Skincare, haircare, cosmetics, fragrance,
  dermatological products
• Personal Care: Oral hygiene, body wash, deodorants, sun
  protection, grooming products
• Baby and Childcare: Formula, nappies, baby toiletries, feeding
  accessories, paediatric medicines
• Medical Devices and Equipment: Blood pressure monitors,
  glucometers, thermometers, mobility aids

4.3 Private Label Programme

Private label products represent the single most impactful margin
expansion lever available to pharmacy retailers. Dis-Chem and Clicks
both derive significant profitability from own-brand products, which
typically deliver gross margins 15–20 percentage points higher than
equivalent branded products. HealthPlus will launch a phased private
label programme commencing in Year 2, initially targeting high-turnover
categories including vitamins, personal care, and basic OTC
medicines.

The private label strategy targets 12% of total revenue by Year 3,
growing to 14% by Year 5. Products will be sourced from accredited local
manufacturers to ensure SAHPRA compliance, competitive cost structures,
and supply chain reliability. Own-brand packaging and branding will
emphasise quality, value, and local provenance.

4.4 In-Store Clinic Services

Each HealthPlus store will incorporate a primary healthcare clinic,
staffed by qualified nursing practitioners, offering vaccinations, basic
diagnostics (blood pressure, blood glucose, cholesterol screening),
health risk assessments, family planning services, and minor ailment
consultations. Clinic services serve dual strategic purposes: they
generate direct fee income and, more importantly, drive dispensary and
front-shop cross-selling as patients convert to pharmacy customers.

Clinic revenue is projected to contribute 8% of total turnover by
Year 3, with gross margins of 55–65% reflecting the service-based nature
of the offering and minimal cost of goods.

4.5 E-Commerce and Digital Services

HealthPlus will launch a digital-first pharmacy platform comprising a
consumer-facing mobile application, integrated e-commerce website, and
WhatsApp-based prescription ordering service. The platform will support
online ordering with click-and-collect and same-day home delivery,
digital prescription uploads and refill management, loyalty programme
integration and personalised health content, teleconsultation booking,
and chronic medication subscription services.

E-commerce is expected to contribute 5% of revenue in Year 3, scaling
to 8% by Year 5 as consumer adoption of digital pharmacy services
accelerates. The digital platform also provides rich customer data for
personalised marketing, demand forecasting, and assortment
optimisation.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of HealthPlus Pharmacy Group (Pty) Ltd.