How to find a drugstore with low prices?
AUSTRALIA’S drugstore chain is on a mission to cut its prices to get the best deals.
Key points:Retailers say it’s tough to find drugs at lower cost than in AustraliaA new policy of ‘fair pricing’ has brought discounts for some drugs and even pharmacy discountsThere are more than 80,000 pharmacies in Australia, but only a small proportion of them have drugstores and only a handful have pharmacy discountsThe company’s CEO said the company was aiming to reach 50% of its retail pharmacies by 2019.
But while most drugstores are operating under a strict cost-cutting plan, the company’s chief executive said the current policy was proving difficult.
“Costco pharmacy is a small percentage of the pharmacy base and we have an extremely limited amount of pharmacy space.
We are looking to close that gap,” Mr Brown told AAP.”
We are not able to achieve the cost savings we have been talking about.”
Mr Brown said the decision to close the stores would be made in the next few months, but he said it would be fair to expect the store to close on a regular basis in the future.
“The majority of us are in this for the long term,” he said.
“And we will be able to close it if we need to, so it’s not going to be that big a deal.”
Mr Smith said he was proud of the efforts of the business and its staff.
“I think they are doing great work, we are not a retail operation, we have a retail pharmacy,” he told ABC Radio Melbourne.
“They’re doing fantastic work, they’re putting their money where their mouth is.”
Costco, which also owns Coles, had a turnover of $10 billion in 2017, but Mr Smith said it was likely to be closer to $30 billion by 2020.
“A lot of that is the cost of doing business, the cost that we’re paying for our products,” he added.
“So it’s about being a bit more efficient in our business, making sure we are spending more of our cash on our stores, and we’re doing that by closing our stores.”
Mr Harris said he had always been sceptical about the idea of closing a store, but the plan was a positive step.
“It’s a really good step, I think it’s a great thing for our industry,” he says.
“People are getting some really good value for their money.”
He said it made sense for the company to close its stores, but added that he would be surprised if many of the stores were left open.
“If they close, they will be in trouble, it’s going to drive up the price of our products, it is going to create competition for those of us that have gone to the store,” he explains.