Chemist Warehouse

Chemist Warehouse Group (trading as Chemist Warehouse, Chemist Warehouse New Zealand, My Chemist, My Beauty Spot[3]) is an Australian company operating a chain of retail pharmacies both locally and internationally. The company is Australia's largest pharmacy franchise retailer with over 350 stores,[1] and employs over 8,000 staff. The company brands itself as offering discounted prices for pharmaceutical goods.[3][4] The company also manages a website and a "click and collect" 24 hour dispense either pick-up and delivery service for medications.[3]

Chemist Warehouse Group
TypePrivate
IndustryPharmacy
Founded2000 (2000)
FoundersJack Gance
Sam Gance
Mario Verrocchi
HeadquartersPreston, Victoria
Australia
Number of locations
350[1]
Area served
Australia, New Zealand, Ireland, China
Key people
Damien Gance
Mario Tascone[2]
Products
  • Pharmacy
  • health products
  • supplements
  • perfume
  • personal care
  • baby products
  • weight loss
  • cosmetics
Number of employees
8000
Website

Model
A Chemist Warehouse store in Canberra in 2013
Chemist Warehouse interior Rocklea, Queensland

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.[5] 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.[6]

The company had an estimated revenue of $2.3 billion in 2013–14.[7]

History

Founders

The company was founded in 2000 by pharmacist Jack Gance and his brother Sam in partnership with businessman Mario Verrocchi.[8] 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.[9][10] The next generation of the family includes Damien Gance,[8] who is also involved in running the business, and television doctor Elena Gance.[11]

Jack Gance and his wife own a mansion in the Melbourne suburb of Toorak,[12] as does his brother Sam, who is married to reality television star Janet Roach.[13] Verrocchi and his wife Fiona own the historic Morning Star Estate on the Mornington Peninsula south of Melbourne.[14] In 2013, Inside Retail magazine ranked Sam Gance as the 16th most powerful retailer in Australia.[15]

Expansion

In 2022, the company opened stores in China and Ireland, and expanded its chain in New Zealand.[14] It is a shareholder in medical vape manufacturer Liber Pharmaceuticals.[16] There was speculation in 2021 and again in 2023 about the company going public and listing on the Australian Stock Exchange.[17][18]

Radio

The company has a radio station called Chemist Warehouse Remix which broadcasts in stores as well as on DAB+ and the iHeartRadio app. This is run in partnership with the ARN group and New Zealand Media and Entertainment. [19][20]

Criticism

The Pharmacy Guild and pharmacists' union have criticised the company, stating its approach threatens both healthcare standards and employment conditions in the industry.[5] 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.[21]

References
  1. "How Chemist Warehouse became a commercial property game-changer". www.realcommercial.com.au. Retrieved 7 September 2020.
  2. "Chemist Warehouse boss issues warning over plan to double prescriptions". The Sydney Morning Herald. Nine Entertainment Co. 11 April 2023. Retrieved 25 April 2023.
  3. "Australia's Cheapest Online Pharmacy". www.chemistwarehouse.com.au.
  4. "The rise (and rise) of Chemist Warehouse". Roy Morgan.
  5. "It's the Bunnings of pharmacy: How Chemist Warehouse made a motza". www.news.com.au.
  6. "Chemist Warehouse and the hypocrisy of government rules". www.afr.com. 7 January 2016.
  7. Jones, Kate (19 March 2014). "Killing off the chemist" – via The Sydney Morning Herald.
  8. Murphy, Jason (22 September 2018). "Secrets behind Chemist Warehouse's success". news.com.au. News Corp Australia. Retrieved 25 April 2023.
  9. "Jack Gance; Chairman and Co-founder, Chemist Warehouse; EY Entrepreneur Of The Year 2023 Australia". Ernst & Young. 2023. Retrieved 25 April 2023.
  10. "$1.35B 2023 Australia's 50 Richest Net Worth: About Jack Gance & family". Forbes. Integrated Whale Media Investments. 15 February 2023. Retrieved 25 April 2023.
  11. Schneiders, Ben; Millar, Royce (15 April 2019). "TV doctor and Chemist Warehouse scion warned for prescribing drugs to herself". The Sydney Morning Herald. Nine Entertainment Co. Retrieved 25 April 2023.
  12. Landy, Samantha (20 December 2019). "Chemist Warehouse co-founder Jack Gance's family buys Toorak mansions". realestate.com.au. REA Group. Retrieved 25 April 2023.
  13. Brook, Stephen; Hutchinson, Samantha (13 October 2021). "Chemist Warehouse owner Sam Gance buys $43m Toorak mansion". The Age. Melbourne: Nine Entertainment Co. Retrieved 25 April 2023.
  14. McMillan, Isabel (22 October 2022). "Millionaire businessmen turn major profit through cost of living crisis". news.com.au. News Corp Australia. Retrieved 25 April 2023.
  15. "50 most powerful retailers". www.insideretail.com.au. 15 January 2014.
  16. Chrysanthos, Natassia (8 April 2023). "Chemist Warehouse, former health minister's lobby group among medical vape shareholders". The Sydney Morning Herald. Nine Entertainment Co. Retrieved 25 April 2023.
  17. Thompson, Sarah; Macdonald, Anthony; Boyd, Tim (18 February 2021). "Chemist Warehouse gears up for float; readies RFP". The Australian Financial Review. Nine Entertainment Co. Retrieved 25 April 2023.
  18. Rowley, David (9 January 2023). "Chemist Warehouse float (again) tipped to be year's IPO highlight". Australian Journal of Pharmacy. Retrieved 25 April 2023.
  19. "ARN launches new digital station Chemist Warehouse REMIX". Radio Today. 3 September 2018. Retrieved 25 April 2023.
  20. "Has Chemist Warehouse got the Mix right?". Truly Deeply. July 2011. Retrieved 25 April 2023.
  21. 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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