Discounter chemist arrives in NZ

Australian retail giant Chemist Warehouse has confirmed it is coming to New Zealand.

The chemist chain started looking for staff for its first store in Auckland on Tuesday. It is advertising for chemists, retail staff, and dispensary technicians.

Chemist Warehouse operates more than 400 stores throughout Australia and recorded turnover of A$4.4 billion (NZ$4.8b) last year. It is the sixth biggest retailer in Australia.

Chemist Warehouse’s main competitor in New Zealand is Green Cross Health, which owns Life and Unichem pharmacies, with revenue in the year to June of $488 million.

Former chief executive of Radius Pharmacy Group Mike Seymour said Chemist Warehouse would bring a supermarket mentality to the pharmacy sector, and would focus on a high volume of different products at low prices.

‘‘Chemist Warehouse will look at how they can be the dominant player and drive down current retail prices by about 20 [per cent] to 25 per cent. I think Green Cross are underprepared for an assault.’’

Green Cross Health chief executive Grant Bai said Chemist Ware- house was a price-driven retailer but his company concentrated more on customer health.

‘‘None of us like a new person stepping on their patch and it’s my job to be worried, but I’m a big believer of play the ball, not the man. We have to be really good at what we do, not focus totally on this discounter coming to market.

‘‘I think they will be a little bit more challenged in New Zealand because of Pharmac, who dictate the price of medicines and have made our medicines some of the cheapest in the world,’’ Bai said.

First Retail Group managing manager Chris said that while the chain was not a household name in New Zealand, it was likely to engage shoppers with its bulk merchandise and cheap pricing.

‘‘Their stores would have equal appeal and success in both upscale suburbs as well as lower socioeconomic areas,’’ he said.

‘‘The model is slick and scalable. We would envisage the chain would launch with two or three stores into the Auckland market then scale from there.

‘‘Hamilton, Tauranga, Wellington and Christchurch would most likely follow.’’

Chemist Warehouse commercial manager Damien Gance and founder Sam Gance have not returned calls for comment.