Chemist Warehouse Shoppers Spend Over 50% More

Chemist Warehouse is shaking up Australia's retail landscape by drawing shoppers away from major supermarkets and rivals, as its customer spending per month now exceeds 50% more than competing pharmacy chains.

Author

Pick & Scroll News
April 14, 2025

Chemist Warehouse is shaking up Australia's retail landscape by drawing shoppers away from major supermarkets and rivals, as its customer spending per month now exceeds 50% more than competing pharmacy chains. While aiming to boost its sales further, this dominance could deepen the challenges for traditional retailers losing ground in health and beauty categories.


Once considered a niche discount pharmacy, Chemist Warehouse is now a retail juggernaut following its high profile merger with Sigma Healthcare. The deal created an ASX powerhouse, combining wholesale distribution and over 1,000 retail stores across Australia and growing international markets. The new entity looks to expand further into Australia and beyond, including Ireland.


Fresh analysis from Macquarie using advanced data tools reveals shoppers not only spend significantly more at Chemist Warehouse, but also visit more frequently compared to Priceline and Terry White. Meanwhile, Macquarie’s report shows sales in pharmacy rose 11% in early 2024, outpacing other retail sectors like alcohol and furniture, which saw declines. Consumer habits are shifting, with buyers choosing pharmacies and non-traditional outlets like Amazon and Bunnings for everyday essentials.


Supermarkets like Coles and Woolworths are taking notice. Coles has revealed through internal research that it’s lost roughly $100 million annually over the past 4 years to large-format pharmacies selling skin care, nappies and household cleaning products. The overall supermarket sector may have lost as much as $500 million to players like Chemist Warehouse, Amazon and Temu in these categories.


What happens next depends on how much more of the personal care and wellness market Chemist Warehouse can grab before competitors adjust. Its aggressive pricing, product range, and growing network suggest it isn’t done expanding. Supermarkets and traditional pharmacies may need to rethink their strategies if they want to win back consumers.