Australian shoppers choose Chemist Warehouse over | Australian Markets
Chemist Warehouse is dominating Australia’s pharmacy footprint, with customers opting to buy on the low cost juggernaut over its rivals Priceline and Terry White.
Chemist Warehouse started trading on the Australian Securities Exchange final month after shareholders authorized the mammoth $34 billion reverse takeover of smaller-listed Sigma Healthcare.
The merged group now controls 950, or 16 per cent, of the nation’s pharmacies, in contrast with Wesfarmers-owned Priceline’s 470 shops and Terry White’s 600.
Investment bank Macquarie on Monday launched its new information harvesting device Fonto, which gives element on market share, average basket measurement and frequency to discover consumer-purchasing trends, aggressive behaviour and model interplay because it pertains to Australian retailers.
It revealed Chemist Warehouse was the driving drive within the pharmacy sector, noting an “average spend per month more than 50 per cent higher than competitors Priceline and Terry White as it benefits from its broad offering”.
According to Chemist Warehouse’s latest financial outcomes, whole retail community gross sales hit $5.15b within the six months to the top of December, up from $4.56b recorded in the identical period a yr earlier.
It has opened 36 new shops because the first-half of the 2024 financial yr, taking its whole community to 658 throughout 5 geographies — together with NZ, Ireland and China. It just lately opened in Dubai.
Chemist Warehouse was formally launched in 2000, the identical yr it opened its first shops exterior Victoria in South Australia and NSW. Founders Jack and Sam Gance, in addition to Mario Verrocchi, have spoken of their ambition so as to add a whole lot more in Australia alone.
Chemist Warehouse and Sigma shareholders in January overwhelmingly endorsed the mega tie-up, with Chemist Warehouse shareholders rising with virtually 86 per cent of the mixed group.
Macquarie’s analysis discovered spending growth within the pharmacy and digital classes continued into the March quarter, up 11 per cent and 10 per cent, respectively.
“By brand, Amazon appears to be leading the market albeit noting a broader category range relative to specialist electronics retailers such as JB Hi-Fi,” Macquarie stated.
“On average, Amazon has not taken share from the bricks-and-mortar retailers noting volatility around key sales periods.
“From a frequency perspective, Amazon is leading due to easy-access (online specialist) and focus on subscription (Prime).”
Meanwhile, spending at off-premise alcohol remained tender, down 9 per cent, which possible pointed to continued shifts in consumption patterns and better cost-of-living pressures.
The furnishings class fell 6 per cent, suggesting ongoing weak spot in keeping with tender home building exercise.
In the fast service restaurant class, Mexican-themed fast food chain Guzman Y Gomez and McDonald’s are profitable.
“Noting headwinds facing the category, GYG continues to take share with its fresh offering while McDonald’s is also performing well, with feedback suggesting a heightened focus on value,” Macquarie stated, including Domino’s seems to be dropping market share.
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