Chemist Warehouse frustrated at bills


Soaring energy bills are creating a tough retail environment for Chemist Warehouse, the chain’s co-founder has said

Speaking to The Australian’s Eli Greenblat, Chemist Warehouse’s Damien Gance has said that the retail environment is as difficult now as it was during the Global Financial Crisis of 2007-8.

Mr Greenblat interviewed several business leaders who said that energy prices were a growing concern, with one employer claiming Australia is facing an “energy catastrophe”.

According to Damien Gance, the high price of energy is threatening Chemist Warehouse’s ability to effectively compete in the market.

“Chemist Warehouse is a business grounded on passing the best prices to consumers so any input price that materially changes affects our capacity to continue to charge competitive pricing as we do,” Mr Gance told The Australian.

“It has bubbled its way up the management levels within our business and has come to my attention.”

The issue of high energy costs, combined with a highly competitive retail sector and consumers who are “weary of spending money,” are a significant concern, Mr Greenblat writes.

“We are seeing it takes a lot more to get consumers to spend on discretionary items… in motivating people to buy more discretionary products and we are finding that we need a better promotional offer, a better call to action, a better retail execution,” Mr Gance said.

Meanwhile, Alizila reports that Chemist Warehouse and Tmall Global – the Alibaba Group’s dedicated cross-border e-commerce site – have extended their exclusive partnership.

The deal means Alibaba will support Chemist Warehouse during significant promotional activities such as the 11.11 Global Shopping Festival, and will help the pharmacy chain increase its access to Chinese consumers.

“The motivation to continue the relationship is so we can use Alibaba’s ecosystem to build our brand awareness in China,” said Nancy Jian, chief operating officer for the China division of Chemist Warehouse.

“We work with Alibaba very closely to make sure we utilize every channel possible to engage our target customers on Tmall Global.”

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8 Comments

  1. JimT
    19/09/2017

    You (CWH) have energy price problems and no one else has ?? suck eggs…any excuse for free press.

  2. PharmOwner
    19/09/2017

    Yep. Boo f$%&ing hoo. If your expenses go up, put your prices up. That’s Business 101 Mr Gance. I would have thought a Commerce graduate would have been all over business basics like that

  3. Andrew
    19/09/2017

    Reading between the lines this is more Liberal Party politicking for a new coal power plant.

    Stick solar panels on your shops, Gance. Problem solved.

  4. William
    19/09/2017

    One would think that others would be agreeing with CW in stating the obvious impact of electricity prices on businesses, both small and large, and would be supportive of a chain that makes the case for them.
    But no, the hatred of the small minded ones takes over and cut of their noses to spite themselves.
    By the way Andrew, effective average solar production in the large cities ceases about 4pm.

    • Andrew
      19/09/2017

      Go back to 2GB mate.

    • SCOTT DAVIS
      05/10/2017

      The 4pm cutoff would be why batteries are part of the solar solution these days for extended hours traders, particularly in the southern states of Australia.

      • William
        05/10/2017

        At this point in time, very expensive and small capacity and not even of much use in the home environment usage. Buy a diesel generator instead.

  5. Geronimo
    19/09/2017

    gofundme.com

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