Chemist Warehouse plans to double its store count in New Zealand to 140 over the next decade, a move advocates said would undermine independent pharmacies in the country.

In a briefing prepared for a meeting with Regulations Minister David Seymour in July, Pharmacy Investments (PI) Group, which operates Chemist Warehouse in New Zealand, said the chain reached 70 stores at the end of last year and plans to double it within the next five to 10 years.

The briefing, obtained by BusinessDesk under the Official Information Act (OIA), also shows that the chain is lobbying the Government to help it achieve the growth target.

The chain is seeking legislative change to enable large-scale, centralised, automated dispensing robotics, the addition of pharmacists to the Immigration NZ Green List, and better access to over-the-counter medicines.

Chemist Warehouse opened its first New Zealand location in Auckland in 2017. For the year ended June 2025, retail network sales from NZ stores exceeded A$1 billion ($1.2 billion) for the first time.

The briefing to Seymour says Chemist Warehouse holds 66 per cent of the retail pharmacy market in the country. PI Group also claims the chain has saved Kiwis $63 million in healthcare fees through its prescription discount scheme.

Independent pharmacies at risk

Independent pharmacy advocates told BusinessDesk that the Chemist Warehouse’s urban focus and loss-leader prescription model is forcing community pharmacies out of business. 

The chain’s plans to double the number of its stores will make the problem worse, especially in smaller towns or rural areas, they added.

Approximately 150 independent pharmacies have closed in New Zealand over the past five years, according to the Independent Community Pharmacy Group (ICPG).

Clive Cannons, CEO of the ICPG, told BusinessDesk that the closures are concentrated in the main urban centres, where Chemist Warehouse has expanded.

“They’re not going to go to the rural areas. They’re not going to go to small towns, which makes me wonder what their motive is,” Cannons said.

“Independent pharmacies don’t have the funds of a listed company to prop up an unprofitable dispensary. What you will see over time is if Chemist Warehouse is allowed to expand, independent pharmacies will have to start closing because they will no longer be profitable businesses,” she added.