The increased risk of pharmacy closures has been also fuelled by...

The increased risk of pharmacy closures has been also fuelled by the adoption of the discounting model not only the reduced prices set by government under the price disclosure policy. Many of the more marginal community and shopping centre pharmacies have tried to compete with the CW discount group phenomenon rather than sticking to a service model. Either way they may be doomed without a good location, sound management and expansion of government funded service.

Of course Sigma has been a part of this with their extraordinary assistance to CW. It will be interesting to see how the supply contract issues evolve. Personally I hope the major wholesalers play hard ball with CW because it is in the interest of their own groups and ongoing relationships to have a level playing field.