Big news for ‘go woke, go broke’ enthusiasts this week: It is reported that Dis-Chem’s plummeting share price has lost the company almost R2 billion over the past few weeks. A letter published by their CEO, which discouraged the hiring of white workers, has allegedly sparked the collapse.
White workers row costs Dis-Chem dearly
Although Dis-Chem have backtracked on their initial hiring strategy, it would appear that most of the damage has been done. Millions of concerned citizens were left outraged by a so-called ‘moratorium’ on employing more white workers, in order to comply with BBBEE laws.
A number of high-profile South Africans have vowed to never set foot in Dis-Chem again. Steve Hofmeyr made headlines on Monday, when he posted a picture of his ‘last ever prescription‘ from the pharmaceutical giants. It seems this exodus is having a profound impact…
How much money has Dis-Chem lost this month?
A report from Daily Investor has translated the recent share price losses into a monetary value. They believe that the financial damage has been catastrophic for Dis-Chem. Whichever way you look at it, things aren’t looking too bright for the retailer:
- Dis-Chem’s share price is now 11% LOWER than it was six months ago.
- Despite an initial recovery, stock has dropped again by roughly 10% since the first day of November.
- Dis-Chem recorded a strong first-half performance in 2022, but things are now heading downhill.
- The share price is actually 1.61% WORSE than it was five years ago.
- Their figures haven’t been this low since the last hard lockdown of the COVID-19 pandemic (July 2021).
- Experts now estimate that almost R2 billion has been wiped-off the share price.
Share price shows major ‘wealth destruction’ after white workers letter
What is even more concerning for Dis-Chem is that this may not even be the worst of it all. According to the report, there’s a possibility that they could lose ‘significantly more’ in the weeks to come. What a difference one letter can make, hey?
“Dis-Chem’s share price fell by almost 7% over the last month. The share price decline translates into R1.87 billion of wealth destruction. However, the exact impact of the letter is difficult to measure. It may be significantly more – or less – than R1.87 billion.” | Daily Investor