‘It’s a hard pill to swallow’
Local pharmacy owners fear the worst as two discount chemist chains prepare to open in New Plymouth
The arrival of two discount pharmacy chains has owners of New Plymouth independent chemists fearing for their future.
‘‘It’s a hard pill to swallow,’’ Vogeltown Pharmacy owner David Fabish said.
‘‘It doesn’t make sense why two would pop at the same time.’’
The New Zealand-owned discount pharmacy chain Bargain Chemist is opening on Courtenay St, opposite Countdown Central New Plymouth, on Wednesday.
And Australian brand Chemist Warehouse is opening at The Valley, where there are already two chemists.
Both Bargain Chemist and Chemist Warehouse offer free prescriptions and sell beauty and lifestyle products at heavily discounted prices.
But many medicines are subsidised by the government, and the standard $5 prescription fee goes to the cost of those medicines, rather than to the pharmacy, which means the discounted chain brands are paying for it out of their own pocket.
‘‘They’re doing it for a loss, but they’re dangling the carrot to get the foot traffic through the door,’’ Fabish said.
‘‘So they’re getting their money from somewhere else to off-set their money from doing scripts, and that’s retail.’’
But a local chemist cannot afford to follow the big chains in order to entice customers.
‘‘The public think we’re ripping them off,’’ Fabish said.
Fabish said there is a fear among local chemists that the introduction of the big chains is going to wipe out their sector.
They were confused as to why the Taranaki District Health Board is allowing two chain brands to open, especially at the same time.
‘‘Me and my colleagues are asking the DHB, ‘Can you tell us what we’re doing wrong?’
‘‘What are we doing, as existing pharmacies in the area, to make them want to give out more contracts?’’
All pharmacies wishing to hold an Integrated Community Pharmacy Services Agreement in the Taranaki region have to hold a Licence to Operate a Pharmacy and apply to the Taranaki District Health Board (TDHB) for a contract.
Moturoa Pharmacy owner Neal Dorey agreed he felt let down by TDHB.
‘‘The work we have all put into the past year during this pandemic clearly has been ignored by our wonderful DHB by introducing such predatory/cutprice companies, whose presence will indeed threaten locally owned pharmacies’ existence,’’ he said in an emailed statement.
‘‘Moturoa Pharmacy is approaching 70 years in existence, in 2023…not sure what our future will look like.’’
Becky Jenkins, general manager planning, funding and population health for TDHB, said in an emailed statement that they review all applications for contracts carefully and take into account a range of factors.
‘‘Taranaki DHB considered that there was benefit and value to the Taranaki community in terms of additional access to quality pharmaceutical services,’’ she wrote.
But Pharmacy Guild of New Zealand chief executive Andrew Gaudin said it would put the local chemists under pressure.
‘‘In other regions we have seen independently owned and operated pharmacies come under significant financial pressure when discount pharmacy chains open nearby,’’ he said.
‘‘A growing number of these pharmacies are losing market share to the big retail chains, leading to smaller pharmacies cutting services, opening hours, and staff, and in some cases closing altogether.’’
In the North Taranaki Midweek’s April 28 edition and South Taranaki Star’s April 27 edition, a full-page advertisement on behalf the guild’s pharmacies encouraged people to support their local chemists.
‘‘They simply wanted to remind the community of the work they do and level of support they provide,’’ Gaudin said.