Chemist Warehouse

Chemist Warehouse (or Chemist Warehouse Group) is an Australian company operating a chain of retail pharmacies. The company is Australia's largest pharmacy retailer with over 350 stores,[1] and employs over 8,000 staff. The company brands itself as offering discounted prices for pharmaceutical goods.[2][3]

Chemist Warehouse Group
Chemist Warehouse
TypePrivate
IndustryPharmacy
Founded2000
FounderJack Gance
Sam and Lydia Gance
Verrocchi families
HeadquartersMelbourne
Area served
Australia, New Zealand
Key people
Damien Gance
ProductsPharmacy, health products, supplements, perfume, personal care, baby products, weight loss, cosmetics
BrandsChemist Warehouse
Chemist Warehouse New Zealand
My Chemist
My Beauty Spot
ServicesPharmacy, medicine, perfume, health products, baby products
Number of employees
8000
Websitewww.chemistwarehouse.com.au
Chemist Warehouse store in Woden, ACT

Model

The company has been dubbed "the McDonald's of pharmacy" and uses a complex franchise structure to circumvent Australian regulations that limit how many pharmacies a company can operate in any one area.[4] The company's structure allows it to "control" about 400 pharmacies across Australia, and it makes up about 50 percent of the market share. The business model used by Chemist Warehouse is thought to involve minimal equity investment by individual pharmacists who agree to the trading terms enforced across the group. Individual pharmacists working under the Chemist Warehouse umbrella benefit from the bulk purchasing power that comes with being part of the company.[5]

The company had an estimated revenue of $2.3 billion in 2013–14.[6]

The 2013 Inside Retail Magazine Top 50 Most Powerful Retailers list placed Sam Gance of Chemist Warehouse at number 16.[7]

Radio

The company has ventured into radio, creating the Chemist Warehouse Remix with Australian Radio Network. The radio was publicised as a 'custom built station' for Chemist Warehouse. It is not limited to stores and can be heard via the web, or with a smartphone app.[8]

Critics

The Pharmacy Guild and pharmacists' union have criticised the company, stating its approach threatens both healthcare standards and employment conditions in the industry.[4] It was also being probed by the Fair Work Ombudsman of underpaying almost 6,000 employees totaling more than $3.6 million in outstanding wages.[9]

References
  1. "How Chemist Warehouse became a commercial property game-changer". www.realcommercial.com.au. Retrieved 7 September 2020.
  2. "Australia's Cheapest Online Pharmacy". www.chemistwarehouse.com.au.
  3. "The rise (and rise) of Chemist Warehouse". Roy Morgan.
  4. "It's the Bunnings of pharmacy: How Chemist Warehouse made a motza". www.news.com.au.
  5. "Chemist Warehouse and the hypocrisy of government rules". www.afr.com. 7 January 2016.
  6. Jones, Kate (19 March 2014). "Killing off the chemist" – via The Sydney Morning Herald.
  7. "50 most powerful retailers". www.insideretail.com.au. 15 January 2014.
  8. "Has Chemist Warehouse got the Mix right? - Truly Deeply - Brand Agency Melbourne". www.trulydeeply.com.au. 14 July 2011.
  9. Schneiders, Royce Millar, Ben (7 November 2016). "Australia's cheapest chemist? Watchdog probes Chemist Warehouse pay". The Sydney Morning Herald. Retrieved 4 December 2018.
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