Chemist Warehouse and Bargain Chemist moving into Whanganui by the end of the year

Chemist Warehouse was launched in New Zealand in 2017. Photo / File

The imminent arrival of two major pharmacy retailers in Whanganui has some of the local smaller operators here concerned that they will not be able to compete.

Australian pharmacy retailer Chemist Warehouse will soon be opening in Whanganui - its 21st New Zealand store - while New Zealand-owned pharmacy chain Bargain Chemist is also expected to set up here in the next few months.

While an exact location hasn't been officially announced, a Chemist Warehouse spokesperson said it would be "off Victoria Avenue".

"We can confirm the store will be open by the last quarter of the year [2022]."

The company entered the New Zealand market at the end of 2017, opening its first store in St Luke's in Auckland.

It currently operates in Australia, New Zealand and Ireland.

As for the reasons behind the Whanganui expansion, the spokesperson said new stores could open depending on customer feedback.

"We do try to reach regions where it is hard for customers to travel to their closest store that may be more than two to three hours away."

Whanganui District Health Board chief executive Russell Simpson said the DHB recognised that accessible and affordable pharmacy services were an important element in health service provision.

"Chemist Warehouse offers free prescriptions, free blister packs and extended hours of service for customers," Simpson said.

"The addition of Chemist Warehouse is seen as a positive for members of our community, with extended opening hours including weekends ensuring the workload on our pharmacists is shared across our community, in particular after-hours."

Meanwhile, a Trafalgar Square spokesperson said New Zealand-owned pharmacy chain Bargain Chemist would soon be moving into the space formally filled by Bed Bath & Beyond.

That was confirmed by the company's managing director Peter Shenoda, who said a store would open at the shopping centre within the next few months.

Bargain Chemist currently operates 15 stores across the country.

Wicksteed Pharmacy manager Lesley Roy said she felt having the two chain stores in town was "a bit of a blow" for the privately owned retail pharmacies in Whanganui, all of which had worked hard to provide essential services to the community.

Her thoughts were shared by the owner of Central City Pharmacy, Stacy Simpson, who said it was already hard to find professional staff, both locally and nationally.

Central City was advertising for a pharmacist but had received no applications as yet.

"It does seem that wherever Chemist Warehouse goes a Bargain Chemist turns up as well, or vice-versa," Simpson said.

"It happened in New Plymouth. They are pretty much next to each other."

A Bargain Chemist store is set to move into the former Bed Bath and Beyond space at Trafalgar Square. Photo / Mike Tweed

Simpson said larger companies were able to absorb the $5 (per) prescription tax and offer them for free as a loss leader marketing strategy.

Loss leader pricing involves selling a product below cost, often at a loss to the retailer, in order to get customers into the store.

"As a small independent (pharmacy) I can't compete with that, and I don't think anyone in Whanganui can," Simpson said.

"I'm all for healthy competition but this isn't an even playing field.

"We live here and we are committed to the community. This is a kick in the guts, really."

The only pharmacy in Whanganui currently offering free prescriptions is at Countdown on Victoria Avenue.

Pharmacy Guild of New Zealand chief executive Andrew Gaudin said discount pharmacy chains distorted the focus on health and wellbeing services to one which was more focused on retail sales to make commercial profits.

"Some individuals will invariably choose a discount pharmacy with a free prescription offer," Gaudin said.

"As a result, discount pharmacies are putting community pharmacies under financial pressure, as these independently owned and operated community pharmacies cannot afford to incur the financial loss that results from free prescriptions."

A targeted removal of the Government's $5 charge would support more equal access to medicines and essential community pharmacy services for all New Zealanders, and would also support a more viable community pharmacy sector, Gaudin said.

"The Guild continues to pursue this policy change with the Minister of Health and other key stakeholders."

Whanganui general practitioner Alan Mangan said doctors didn't direct people to specific pharmacies and weren't permitted to have business relationships with them.

"From the point of view of the general economy, I think the fact that these businesses are coming to town would indicate that they think Whanganui is a place to be," Mangan said.

"On the other hand, I feel sorry for the local people who have put in a lot of time, effort and capital into building up their own businesses."

Gaudin said the guild encouraged people to continue supporting their locally owned and operated community pharmacies.

"They are an integral part of their community and have been for many years.

"These pharmacies truly care about their patients' health and go the extra mile to support them to stay healthy and well."