Terry White Group has announced the network’s first half (to 31 December 2015) retail sales had increased 18%, outperforming the industry average growth rate significantly.
Terry White Group CEO Anthony White says the network is consistently achieving above-market, like-for-like retail sales growth in the pharmacies as a result of its Value Health strategy and significant transformative investment.
“Over the last few years we’ve invested in our systems, capabilities, CRM platform and private label range to drive our retail sales, laying a solid and sustainable foundation for our future growth,” he says.
“We are now seeing the benefits of this investment – retail sales continue to be a growing component of the network’s total sales and now comprise almost half of total network sales.
“This gives pharmacists a solid front-of-shop revenue stream, which is critical in offsetting the effects of reforms to the Pharmaceutical Benefits Scheme to ensure ongoing viability in this industry.
“Additionally, in-store efficiencies have improved, local marketing and merchandising activities are more efficient and pharmacists are now better able to focus on their customers.”
White says that network sales across all categories were up in the first half, with the vitamin, health and beauty categories performing particularly well.
The strategic acquisition of Chemplus in July 2015 has also positively contributed to the sales growth and success of the Group, he says, adding 60 stores to the network and increasing distribution points for private label products.
“Chemplus’ sales across all categories increased solidly in the first half, demonstrating that the integration and upgrading of its stores is proceeding well,” White says.
“All Chemplus stores now carry the Terry White Chemists own-branded products and we’ve commenced phasing in other ranges as well.
“We’ve also had a number of Chemplus stores convert to Terry White Chemists and a number of new stores converting to the Chemplus brand, expanding the overall scale of the Group in the last six months.”
White says the Group’s investment in systems over the last few years has also been a key driver for the strong first half sales growth.
“Our new Enterprise Resource Planning system gives us the visibility we need to be highly competitive and has enabled us to implement our Value Health strategy, which includes aggressive pricing and increased levels of promotional activity,” he says.
“This systems investment, coupled with our strategy, is powering our growth and allowing us to maximise the current opportunities in the marketplace.”