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Chemist Warehouse, the largest pharmacy multiple in Australia, is entering the UK market through a partnership with an employee-owned group based in London.  

Announced today (May 5) at a conference of business leaders in Australia, the move will see Chemist Warehouse parent company Sigma Healthcare acquire a 75 per cent share in a number of pharmacies operated by the Greenlight Healthcare pharmacy group, which will retain a 25 per cent share in each of the stores.  

Under the joint venture agreement, some of Greenlight’s 22 pharmacies in and around the London region will be rebranded as Chemist Warehouse, with the Australian chain providing “retail support, including ranging, store layout, inventory management and marketing support” according to Sigma Healthcare. 

It added: “Greenlight will provide the dispensary and professional services requirements and back-office support.” 

Chemist Warehouse and Greenlight plan to work together identify stores that may be appropriate for rebranding or relocation, with five of the co-operative’s stores expected to be rebranded as part of the first phase of the agreement.

The first site to be redeveloped under the agreement will be on Hoxton Street in East London. 

More stores would be considered for rebranding in a second phase of the agreement “should these prove successful,” said Sigma Healthcare.

Sigma Healthcare CEO Vikesh Ramsunder told the conference: “International expansion is one of our four key strategic growth pillars.

“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.” 

Last year, Greenlight announced plans to open up to external investment for the first time as it sought £2m for up to 25 per cent equity in the business.  

Greenlight Healthcare, which posted a £1.1m pre-tax loss in its most recent set of accounts, has been approached for comment.