Dis-Chem chief stepping down but ‘not going anywhere’

Dis-Chem co-founder and business icon Ivan Saltzman says he may be stepping down as long-time chief executive (CEO) of the business empire, but it doesn’t mean he’ll be slowing down any time soon.

Still with a spring to his step, he said he intended to remain on the group’s board as an executive director and play a role in its growth.

“I may be 73 years old, but I’m not going anywhere,” he told the SA Jewish Report.

Dis-Chem confirmed on 15 May that Saltzman would step down at the end of June 2023, and the group’s chief financial officer (CFO), Rui Morais, 38, would take over the reins from July. The group’s current executive head of finance, Julia Pope, 42, will succeed Morais as CFO.

A busy Saltzman was on holiday in Israel “for five days only” with his wife and businesses partner, Lynette, when the news did its rounds early on Monday. The formidable couple, who started the company together 45 years ago, turning it into the second largest pharmacy retail group in South Africa after Clicks, is celebrating their 48th wedding anniversary this week.

“Monday wasn’t particularly momentous, we were quite busy and decided to take every day as it comes,” said Saltzman, adding that Morais was effectively announced as Dis-Chem’s chief executive-designate in August 2021 as part of succession planning.

“My duties won’t change substantially. I’ll have more time to focus on the part of the business I enjoy most – travelling to the various stores instead of being office bound,” he said. Lynette will continue in her role as advertising executive and head of the beauty division.

Saltzman, the son of Lithuanian and Polish immigrants, was born and raised in Port Elizabeth (now Gqeberha). He met and fell in love with Lynette while they were pharmacy students in Johannesburg.

When the couple married, Saltzman was the manager of a pharmacy in Mondeor and between raising their three sons, Lynette would join him at the shop on weekends, soon working half day, both as pharmacists.

Saltzman’s late mother, Mary, gave the couple R10 000 to purchase the 75m² store.

“I saw potential, and the rest is history,” said Saltzman, who in all likelihood learnt the tricks of the retail trade as a child helping his mother in the family’s clothing store on weekends.

The couple attribute their enduring success to “passion for the business and focus”.

They introduced the concept of a discount pharmacy with product categories not previously offered in South African pharmacies.

Their goal was to be the leading specialist in beauty, healthy food, sport supplements, health and well-being, “offering the widest ranges in these categories, as well as professional service”, Lynette said.

With a brave, entrepreneurial spirit they opened their second retail pharmacy in Randburg, and began expanding its offering of non-pharmaceutical products or “front shop”.

“The idea was to be constantly innovating and to provide a holistic offering,” said Lynette.

Slowly, shop by shop, Dis-Chem grew and in 2004, the couple opened their first Cape Town branch, becoming national, then moving abroad. When Dis-Chem hit 100 stores in 2016, the business listed on the Johannesburg Stock Exchange.

“Over the years, Lynette and I have grown the business from a single store to what is today – the largest retail pharmacy chain by market share in South Africa, with a network of more than 300 retail stores and more than 20 000 staff,” said Saltzman.

Dis-Chem was also recently featured on the Financial Times/Statista 2023 annual ranking of Africa’s 100 fastest growing companies.

So, how have they managed to survive the twin roles of being life and business partners?

“Ivan was the ideas man, the one with drive and foresight. I helped with implementation. We balanced our individual roles,” said Lynette.

“There was very little conflict because we were both attuned to the same purpose,” Saltzman said.

Saltzman said he never expected the “unfortunate backlash” caused by last year’s controversial leaked memo instituting a “moratorium on the appointment of white individuals”, insisting that while this was regretful, it wasn’t the reason for him stepping down.

“The intention of the memo was to reinforce Dis-Chem’s commitment to accelerate transformation,” he said. At the time, he said there was no ban on employing and promoting white employees in the business.

The memorandum, which was written in September and leaked in October, resulted in a wave of outrage from many sectors of South African society.

In the company’s 45-year trajectory, it has survived other controversies, like many leading companies, but has shown steadfast commitment to uplifting poorer communities through the Dis-Chem Foundation. Started in 2006, the foundation continues to address the dire need for the upliftment of disadvantaged communities throughout South Africa.

In a statement this week, Dis-Chem said that in order “to deliver on the group’s strategic priorities” over the long-term, Saltzman had committed to divest 32.25 million Dis-Chem ordinary shares owned by the Saltzman family, representing 3.75% of Dis-Chem’s issued share capital, to Morais and a group of key senior executives, ensuring their ongoing commitment.

“I’m confident in and supportive of the future leadership of the group,” said Saltzman.

“Together with Lynette, I look forward to doing what I enjoy – spending time in the stores and ensuring that our staff continue to provide the value and service that has made the brand what it is today. I will continue to identify opportunities to expand our store footprint.”

“Saltzman transformed retail pharmacies,” said Dis-Chem Chairperson Larry Nestadt. “Under his leadership, Dis-Chem evolved from a family business to a leading listed, and proudly South African, corporate business. Dis-Chem’s leadership succession has been well managed by Saltzman, and we’re confident in the leadership team’s ability, under Morais’ stewardship, to deliver on the strategic ambitions of the group,” Nestadt said.

The couple have three sons, Saul, Mark, and Dan, and eight grandchildren. Saul is Dis-Chem managing director.