The arrival of Australian giant Chemist Warehouse is shaking up the New Zealand pharmacy industry, forcing many small businesses to offer free prescriptions.
The Chemist Warehouse launched in Auckland's St Lukes suburb last November cutting prescription charges to zero.
The pharmacy chain has since opened a store in Botany, and plans to open another in Manukau, both in the Auckland region.
Its arrival has seen small pharmacies in the area feel the pressure to offer free prescriptions in response.
"We have an older migrant customer base. While those coming in for prescriptions don't usually buy other things, the promotion has significantly increased foot traffic," Balmoral Pharmacy owner Nikil Lal told Stuff.
"It's not an easy decision to make," Mr Lal said. "To provide discounts we have to ensure we still have a sustainable business model and stay afloat."
Retiring pharmacist Warren Flaunty predicted a grim future for the pharmacy industry in New Zealand.
"Pharmacies could lose millions in turnover if they copied the Chemist Warehouse's free prescription model," Mr Flaunty told Stuff.
"It would especially be a big hit for small businesses. Some that do it may fall by the wayside."
SHARE ME