Good Price Pharmacy Warehouse has recently acquired two Oze Pharmacy stores, and there are plans to take on another two before the end of the year. 

The stores are located in the Sydney suburbs of Penrith and Castle Hill, and they are already franchised.

The acquisitions operate in line with the discount health and beauty franchise’s FY15 expansion target of 20 percent – a goal that will be achieved with the opening of six new stores.

Company founder and director, Anthony Yap said completely new sites as well as strategic acquisitions within the industry will drive expansion, and he’s identified a series of benefits associated with the acquisition process.

“Acquisitions allow companies to establish brands more quickly than if they depended solely on Greenfield sites, which effectively involves starting from scratch.

“The recent move of two Oze Pharmacy stores into the Good Price Pharmacy Warehouse brand gave us an immediate footprint in a state where our presence was relatively low.  We were able to build brand awareness through the stores’ existing customer base without having to invest heavily in advertising,” he explained.

Continued expansion is on the business’s agenda, and Yap advocates for the consolidation of smaller brands and independents within the pharmacy industry through acquisition by their larger counterparts.

“The conversion process often leads to immediate increases in both turnover and profitability as efficiencies and economies of scale reduce operating costs and drive turnover through greater brand awareness and increased brand marketing,” he said.

“Good Price Pharmacy Warehouse aims to create a network of stores that have sufficient economies of scale and market power to compete against the biggest players in the market, including supermarkets and discount department stores.”

The two new stores, which are scheduled to open in May and July, bring the company’s total number of New South Wales based sites to nine.