Chemist Warehouse currently runs over 553 outlets in Australia - including a mix of franchise and company-owned stores. Its high-volume, low-margin business model saw the firm bring in total retail network sales of A$10.3bn (US$7.41bn), up 14%, for FY25.
The Australia-based discount pharmacy chain is now eyeing expansion into the UK - starting by relocating some of GreenLight’s outlets into its own.
Founded in 1999, GreenLight owns 22 stores in and around London.
The plan comes as part of a MoU signed by Greenlight Healthcare Limited and Sigma Healthcare - which merged with Chemist Warehouse last year. Sigma Healthcare also operates pharmacy chains Amcal and Discount Drug Stores.
Under the MoU, Sigma will acquire a 75% interest, with the remaining 25% remained under the control of GreenLight.
“The parties intend to identify existing GreenLight pharmacies and, where appropriate, develop or relocate these into Chemist Warehouse stores,” said Sigma Healthcare in an announcement filed on the Australian Securities Exchange (ASX).
According to the announcement, phase one of the joint venture (JV) will focus on rebranding and developing up to five GreenLight stores initially, with the option for more stores in phase two if proven successful.
“The first site under the JV will be in Hoxton Street, northeast of the city of London,” said the announcement.
The JV will see Sigma Healthcare license the Chemist Warehouse brand and intellectual property, as well as provide retail support, including ranging, store layout, inventory management and marketing support to GreenLight.
GreenLight, on the other hand, will provide the dispensary and professional services requirements and back-office support.
International expansion a key strategic growth pillar
International expansion has become one of Chemist Warehouse’s four key strategic growth pillars, having enjoyed initial success in markets such as China.
Outside of Australia, Chemist Warehouse is present in New Zealand and has made inroads in Ireland and Dubai. As of the first half of 2026, it has 70 network stores in New Zealand, 17 in Ireland and two in Dubai.
In Mainland China where it has eight network stores, Chemist Warehouse has made the decision to progressively close down its offline stores by FY29 and focus on its online channels instead.
“Having proven that the Chemist Warehouse model resonates with customers in other markets, including New Zealand and Ireland, the JV with GreenLight now provides a measured market access into the UK,” said Sigma CEO and Managing Director Vikesh Ramsunder.
More such partnerships to come?
Aside from GreenLight, one can expect to see Chemist Warehouse acquire more existing pharmacy outlets as part of its expansion in the UK, Brian Walker, CEO of retail consultancy company Retail Doctor Group Australia, told NutraIngredients.
“The expansion would be acquisition based, they (Chemist Warehouse) will try and buy out channels - the small channels, single retailers and acquire existing pharmacy networks," Walker said. “They will gain regulatory cover and the National Health Service (NHS) dispensing capability, because one just can’t roll out pharmacies at scale without infrastructure and contracts.”
However, unlike the regular pharmacy business in the UK where the focus is on pharmaceutical dispensary, Walker said that Chemist Warehouse would “disrupt” the pharmacy landscape with its strength in highly discounted health supplement, personal care and beauty offerings.
“The real upside is not going to be its dispensary. It is its focus on the retail of vitamins, skin care, beauty, highly discounted range. In this regard, the UK retailers are not as proficient, because Chemist Warehouse does not concentrate on pharmaceuticals, but on real retail products instead,” he said. “You will find them reformat the stores. They will drive retail density and basket size. They will try and undercut Boots on key product lines...And as we already know, UK consumers are price sensitive.”
He believes that Chemist Warehouse will also focus on building its presence in high streets and online.
“You can expect cluster strategies from Chemist Warehouse. They will start to open in major areas like London and its surroundings first and they will focus on high traffic retail locations,” he said.
Based on its retail model, Walker believes that aside from traditional pharmacies, the key competitors that Chemist Warehouse might face in the UK would be supermarket chains like Tesco and Sainsbury.
Potential challenges
Asked the potential challenges that Chemist Warehouse might face in the UK, Walker pointed out areas such as brand translation and execution complexity.
“The warehouse discount concept may not fully resonate. It won’t be easy, but I think they’ll succeed, because we know that UK consumers are price sensitive and may appreciate their very strong focus on price savings,” said Walker.
Other challenges could include compliance with local regulation and NHS reimbursement scheme which can limit profitability and margins.
