anchise-led pharmacy model itself, at a time when rising costs, relentless price competition and consolidation are quietly reshaping the sector’s foundations. When franchise growth meets financial reality Infinity Pharmacy Group quickly built its footprint, assembling a network of pharmacies across multiple states. That growth, ambitious and acquisitive, was underwritten mainly by high-interest debt. When costs climbed and trading conditions tightened, the numbers stopped adding up. Infinity struggled to meet its financial obligations, including payments to suppliers and API. A rescue package was explored, then withdrawn at the eleventh hour by Wesfarmers in late December 2025. Administrators were appointed. Around 54 stores were left in limbo. The collapse of the stores underscores a reality that, for franchise-led pharmacy networks like Priceline’s, financial risk is carried at the store level rather than centrally. According to Wesfarmers Health, the group’s chief customer officer, Richard Pearson told franchisees that “Infinity’s financial collapse was driven by its management’s aggressive acquisition of new pharmacies, funded via expensive, high-interest rate debt,” and that the business could no longer meet its financial obligations to suppliers, including API. The decision to place over 50 Infinity-operated Priceline Pharmacy stores into receivership on 17 December 2025 followed years of financial challenges, leaving creditors owed more than A$400 million. Priceline stores are also structurally dependent on external wholesalers for supply, including API, rather than controlling distribution through their retail operations. This limits Priceline’s ability to directly manage the cost of goods, inventory allocation or wholesale margin within its own retail network. As a result, pricing power and stock flow are shaped largely outside the retail brand’s immediate control. When prices soften, or costs rise, individual franchisees must absorb that impact in isolation, with limited ability to offset pressure elsewhere in the system. The logic of vertical retail This is where Chemist Warehouse enters the frame, not as an antagonist, but as a structural contrast. In February 2025, Sigma Healthcare completed its merger with Chemist Warehouse, creating a combined ASX-listed group that integrates retail pharmacy, pharmaceutical wholesale and distribution under one corporate umbrella. Under the terms of the deal, Chemist Warehouse shareholders came to own approximately 85.75 per cent of the merged group, effectively combining Chemist Warehouse’s retail scale with Sigma’s national distribution infrastructure. Announcing the merger, Sigma described the union of its logistics network and Chemist Warehouse’s retail footprint as the creation of a “leading healthcare business” on the ASX. Importantly, Sigma continues to supply a wide range of independent pharmacies and banners beyond Chemist Warehouse itself, meaning the merged entity does not control the wholesale market outright. What it does have, however, is a rare degree of alignment between retail and wholesale economics inside the same corporate structure. By bringing wholesale and retail together at the corporate level, the Chemist Warehouse-Sigma group is positioned to manage pricing strategy, supply costs and margin across a single business system rather than relying entirely on external wholesalers or franchise economics. This allows financial pressure (when it arises) to be absorbed and redistributed across the group rather than borne solely by individual store operators, as occurs in franchise-heavy models Two models, one market Taken together, these two trajectories illuminate a sector in the process of reordering. On one side, fragmented franchise networks are finely tuned for expansion but exposed to contraction; on the other, integrated operators are consolidating control over the economic architecture of pharmacy retail. Priceline Pharmacy’s crisis reveals the growing distance between models built on decentralised risk and those designed to internalise it. Whether Priceline recalibrates and endures, or becomes an early marker of a sector in retreat, its current predicament marks a turning point. The next era of pharmacy retail will not be shaped solely by where Australians choose to shop, but by who controls the economics beneath the counter.