Discount pharmacy chain Chemist Warehouse is looking to regional areas of New Zealand to grow the business in the wake of the Covid-19 pandemic. The retailer’s aggressive expansion in the region has seen seven new stores open last year, with plans to hit a total store count of 35 by the end of 2021, according to Chemist Warehouse New Zealand CEO Azman Haroon. “Like many businesses, there is no doubt that Covid slowed our ability to build new stores. However, we were really pleased that
d that we were still able to open seven new stores in 2020, a strong result considering the challenges we all faced,” Haroon told Inside Retail.
“There are currently 21 Chemist Warehouse stores across New Zealand, with the aim of having a whopping 35 stores operating by the end of 2021.”
And with the pandemic disrupting consumers’ work and living patterns, Haroon said a focus will be placed on opening stores “in regional centres around the country” including Whangarei, New Plymouth, Blenheim, Nelson, Napier/Hastings, Dunedin, Palmerston North, Queenstown, Rotorua and additional stores in Auckland, Wellington, Christchurch, Hamilton and Tauranga.
Go big or go home
Chemist Warehouse, which is believed to be working towards an initial public offering on the Australian Securities Exchange, recently flagged the opening of its biggest shopping centre store in the country, based in Christchurch.
The Palms Shopping Centre store, which will open in August or September of this year, will span 1000sqm and will offer customers greater access to a full range of leading vitamins, supplements, fragrances, cosmetics, skincare and more.
“Chemist Warehouse has three stores currently trading in Christchurch and we have always had a large customer demand to open a store in the east region of Christchurch,” Haroon said.
“With The Palms being the major shopping centre in the region, it was a perfect store location for us.”
Keryn Ward, centre manager at The Palms Shopping Centre, said in a statement that locals will welcome the opening of the discount chemist.
“Chemist Warehouse will be a very popular addition, with a hugely sought-after retail range and free prescription service that makes it a real destination in every location,” she said.
And despite the retailer reporting very strong online sales in the region, the focus for the business has continued to be on expanding its physical presence.
“We have always had a strong online following in Christchurch but our focus has always been on our bricks-and-mortar retail stores. We pride ourselves on creating a strong ongoing relationship between our customers, pharmacists and our retail team,” Haroon said.
Going global
While New Zealand may seem like an obvious market for the expansion of Chemist Warehouse, the retailer hasn’t been afraid to venture further afield, opening its first European store in Dublin last year.
Almost identical in layout and design to Australian stores, the Blanchardstown store carries over 12,000 SKUs, most of which are Irish brands as well as some European brands.
In Asia, the brand now has two bricks-and-mortar stores in China and a strong online presence in South East Asia through its partnership with Alibaba.
Last month, natural skincare group BWX, probably best known for its Sukin skin and hair care products, inked a five year deal with the retailer to become a platinum supplier of Chemist Warehouse Group – a move that is expected to help the retailer further penetrate the Asian markets.
BWX’s entire range, which includes Sukin, Andalou Naturals, Mineral Fusion and private label brand, Life Basics will be available online and with an increased store presence in all markets.
Jack Gance, Chemist Warehouse chairman and co-founder said in a statement that this partnership will help the retailers advance further in the Chinese market.
“As the biggest retailer in the health and beauty market on Alibaba, we can work more closely to help grow our strategic partners business in China. We have many suppliers wanting to create a strategic partnership, but we only will do so with partners that we believe have the capacity for strong growth,” Gance said.
“We believe that BWX will benefit from the close relationship, especially in new product development and growing market share. I am very confident that we will enjoy a very mutually successful future.”