Chemist Warehouse Group (trading as Chemist Warehouse, My Chemist, My Beauty Spot)[3] is an Australian company operating a chain of retail pharmacies both locally and internationally. The company is one of Australia's largest pharmacy retailers with over 500 stores in Australia,[4] and employs over 20,000 staff.[5] The company brands itself as offering discounted prices for pharmaceutical goods.[6][7]
The company also manages a website and a "click and collect" 24 hour dispense either pick-up and delivery service for medications.[6]
History
The Gance brothers, Jack and Sam, purchased their first chemist in 1972 in the Melbourne suburb of Reservoir. Fresh out of university with a pharmacy degree, Mario Verrocchi, became a trainee under Sam Gance in 1980.[8] The brothers expanded to three locations before leaving the Amcal chain in 1997 and establishing their own brand, My Chemist.[9] In 2000, Jack Gance and Verrocchi founded Chemist Warehouse, opening the first store in Melbourne.[10]
Chemist Warehouse made its first international expansion in 2017, launching in New Zealand.[11] In 2020, it expanded to Ireland.[12] The company opened it first store in China in October 2021.[13]
In late 2018, the company launched its Ultra Beauty concept, luxury fragrance and beauty product stores which operate within Chemist Warehouse stores.[14]
Chemist Warehouse entered the optometry market in 2023, opening its first Optometrist Warehouse store in Malvern in February.[15] In the second half of 2023, Chemist Warehouse established Chemist Warehouse Hospital Pharmacy, a joint venture with Cathie Reid and Stuart Giles aiming to establish a network of hospital-based pharmacies.[16]
In June 2023, Chemist Warehouse signed a five-year supply contract with Sigma Healthcare. As part of the deal Chemist Warehouse would receive a 10.7 per cent stake in Sigma when the contract starts on 1 July 2024.[10]
In December 2023, Chemist Warehouse Group announced its intention to merge with Sigma through a reverse takeover. The deal would make Chemist Warehouse a publicly-listed company on the ASX.[17]
In October 2024, Chemist Warehouse opened its first United Arab Emirates store in Dubai.[18]
Business model
Chemist Warehouse interior Rocklea, Queensland
Chemist Warehouse uses a complex franchise structure to circumvent Australian regulations that limit how many pharmacies a company can operate in any one area.[19] 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.[20]
Unlike traditional pharmacies, Chemist Warehouse generates most of its sales from non-prescription products such as vitamins, fragrances, cosmetics and baby formula.[21][22] Chemist Warehouse also partly owns several brands including Bondi Protein Co, Goat Soap, Barely Intimate Skincare, Bambi Mini and the Wagner supplement brand.[23] It is a shareholder in medical vape manufacturer Liber Pharmaceuticals.[24]
In addition to online shopping through Chemist Warehouse websites,[25] the company trades on several e-commerce marketplaces. It sells to China on Alibaba's Tmall Global and Kaola platforms, and to Southeast Asia on Lazada.[13][26] The company sold more than A$20 million worth of stock during the first seven hours of Alibaba’s Singles’ Day sale in November 2018.[13]
The company had an estimated revenue of $2.3 billion in 2013–14.[27]
The Pharmacy Guild of Australia and pharmacists' union have criticised the company, stating its approach threatens both healthcare standards and employment conditions in the industry.[19] In 2016, Chemist Warehouse was ordered to back-pay almost 6,000 employees a total of over $3.5 million after an audit by the Fair Work Ombudsman.[22][30] A two-week strike by workers at the company's major distribution centres in March 2019 led to pay rises and a change to the way the company uses labour hire.[31]
Founders
Jack Gance had opened his first pharmacy in 1972 and with his brother developed the largest pharmacy distributor in Australia, creating brands such as Le Specs sunglasses, Le Tan sunscreen and Australis cosmetics. He sold the distribution business in 1991 and studied for a Master of Business Administration at Monash University and the New York University Stern School of Business.[32][33] The next generation of the family includes Damien Gance,[34] who is also involved in running the business, and television doctor Elena Gance.[35]
Jack Gance and his wife own a mansion in the Melbourne suburb of Toorak,[36] as does his brother Sam, who is married to reality television star Janet Roach.[37] Verrocchi and his wife Fiona own the historic Morning Star Estate on the Mornington Peninsula south of Melbourne.[38] In 2013, Inside Retail magazine ranked Sam Gance as the 16th "most powerful" retailer in Australia.[39]
