Line in the sand had to be drawn with this CW mob but Sigma only...

Line in the sand had to be drawn with this CW mob but Sigma only have themselves to blame. CW's expansion model has been supported by Sigma which has shafted their loyal group pharmacies and independents.

CW must be hugely leveraged and their corporate model must be also financed with a lot of debt of individual pharmacist members. Every bit of financial penalty (ACCC, ATO, LEGAL FEES, ETC) and reduction in credit terms from suppliers coupled with the continuing reduction in generic dollar margin under gov't price disclosure policy must be stressing their profitability and balance sheet.

Also community pharmacy is fighting back with most major groups and independents adopting discount models to compete. Increasing interest rates will perhaps complete the cascade of stress factors. Pharmacy (as a retail business) has unfortunately been largely self destructing and all brought about by discounting. Pharmacists have become among the lowest paid professionals and mostly work under poor conditions. Many CW owners are amongst the worst employers. If there wasn't an oversupply of pharmacist they would have to pay much higher wages.

I am not suggesting that CW will collapse but I think they will have to be realistic in their conciliation process with Sigma.