John Saywell: Independent Pharmacy Group co-founder on Chemist Warehouse planning to double their sites

Concern from pharmacists over revelations Chemist Warehouse is planning to double its sites in the next decade. 

BusinessDesk reports a confidential briefing for Regulations Minister David Seymour shows it's aiming to have 140 stores.

Independent Pharmacy Group Co-founder John Saywell says corporate chains are squeezing out small local chemists.

"Bigger and cheaper isn't always better, and in healthcare, it's a good idea to keep the business interests separate from the care and the local owner-operated pharmacists really care for their communities." 

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Five.

Speaker 2 (00:00):
Now, if you thought chemist warehouses were everywhere already, you
would be wrong. They actually are planning to double their
stores here within a decade and lobbying the government for
help to do so. John Saywell is the co founder
of the Independent Pharmacy Group and is with us.

Speaker 1 (00:13):
Hi John, Hello, how are you going?

Speaker 2 (00:16):
Very well? Thank you. We've got this old debate obviously
of the old local pharmacy versus the big box guy.
Is this a good idea to have so many chemist warehouses?

Speaker 1 (00:25):
Well, our members are pretty keen on keeping their high
trust model with higher service levels, and they're a lot smaller.
So the bigger the corporate chains get, the harder it
is for our independent owner operated pharmacies to stay afloat
and compete.

Speaker 2 (00:43):
What is it that these kinds What is it that
these guys do to drive you guys out of business?

Speaker 1 (00:49):
Well, not only are they taking up a lot of
the staff and putting pressure on the health staff that
are needed in the dispensaries, but they using their discounts
as a lost leader in their dispensary to grow their
retail foot traffic, and that just takes market share off
everyone else, which is the local owner operated pharmacies, and.

Speaker 2 (01:13):
The local owner owner operated pharmacies cannot compete, can they.

Speaker 1 (01:17):
Well, they certainly can't discount the co payment on prescriptions.
That would put them out of business, whereas the big
corporates are prepared to do that because they're driving foot
traffic into their retail stores. John.

Speaker 2 (01:31):
From a consumer perspective, though, isn't it better? Like, aren't
we better off as consumers if we have the big
yellow guys around because we can get stuff for free
and for cheap.

Speaker 1 (01:40):
Bigger and cheaper isn't always better? And in healthcare, it's
a good idea to keep the business interests separate from
the care and the local owner operated pharmacists really care
for their communities, which is a big point of difference,
but they need a sustainable business model as well.

Speaker 2 (02:00):
Okay, And a fair point that you make is, I mean,
we all love community, but these guys in the yellow
the yellow buildings still have pharmacists, right, So if you
need care, you're still going to get it.

Speaker 1 (02:10):
Yes, But our local, unteroperated pharmacy members are focused on
a small range of health care products and services, and
it's that local personal service that makes a difference. In
family healthcare, Some of our guys and girls that own
the pharmacies are in their communities for twenty thirty forty years,

(02:31):
looking after families and intergenerational health care. So those things matter.
And as I say, bigger isn't always better.

Speaker 2 (02:40):
Yeah, Hey, John, thank you as always really appreciated. John Saywell,
Independent Pharmacy Group co founded. For more from Heather Duplessy
Allen Drive. Listen live to news talks. It'd be from
four pm weekdays, or follow the podcast on iHeartRadio