Caring Pharmacy targets second and third-tier cities

PETALING JAYA: Caring Pharmacy Group Bhd is targeting to expand its outlets in second and third-tier cities in Malaysia next year, including Kota Baru and Kuantan.

Managing director Chong Yeow Siang said the group planned to open its outlets in shopping malls in such cities.

“We are now in major cities but we aim to slowly expand into highly populated second and third-tier cities next year which can sustain our business,” he said after the launch of its collaboration with Australian-listed Holista Colltech Ltd to promote the pharmacist as the frontline in diabetes care.

Currently, Caring Pharmacy has 132 outlets nationwide, including four in Sabah.

By 2024, the local pharmacy chain plans to expand its outlets to 200 in Peninsular Malaysia as well as Sabah and Sarawak.

With a strong net cash position, Chong said the expansion would be funded internally.

Besides physical outlets, he said the group would focus on its online store next year to tap into the rising trend of online shopping.

“We are taking the online stores very seriously. I believe we are not doing enough but will continue to enhance our capabilities to invest in the online department to make it more significant,” Chong noted.

Caring Pharmacy’s online sales are contributing an average of only 1% to group revenue. He expects the consumer sector to be challenging next year, given the intense competition.

Despite tough market conditions, Chong said the group is still committed to boost earnings growth, as it has achieved internal key performance indicators in the last few quarters.

Caring Pharmacy is a specialised retail chain with a growing presence in the most populated areas in Peninsular Malaysia. The group has the principal rights to distribute some pharmaceutical and personalised healthcare products.

It undertakes retail sales of pharmaceutical, healthcare and personal care products, and is the fastest-growing pharmaceutical retail chain.

Motivasi Optima Sdn Bhd is Caring Pharmacy’s largest shareholder with a 50.35% stake.

Strategic partnership: Holista Colltech founder and CEO Datuk Dr Rajen Manicka (left) and Caring Pharmacy managing director Chong Yeow Siang at the launch.