Pharmacybrands thinking smart to tackle competitors

Chemist shop group Pharmacybrands hopes to stop shedding sales to supermarkets with the launch of its low-price Smart Pharmacy franchise this week.

New Zealand's largest pharmacy operator, which owns the Unichem, Amcal and Dispensary First chemist brands, said up to 100 Smart Pharmacy stores could follow the opening of the first in Palmerston North tomorrow.

Pharmacybrands chief executive Alan Wham said the launch was a direct response to industry deregulation which had forced chemists to compete with supermarkets and large format retailers such as Farmers and The Warehouse.

Wham said: "Increasing competition means we need to change our approach to remain competitive and to ensure independent pharmacists have a sustainable business model in the future."

Smart Pharmacy stores were larger than its Unichem and Amcal brands and targeted the mid-market shopper, with a broader range of health and beauty products and prices.

Six pilot stores are due to open this year, with at least one in Auckland.

With more than 200 pharmacies under its umbrella, Pharmacy Brands earns the lion's share of annual chemist-related product sales.

Unichem is its largest brand, with 117 stores nationally.

Wham said supermarkets, internationally, had taken about 20 per cent share from pharmacies while parallel imported stores had also eaten into perfume sales here.