Sigma Healthcare reports robust growth in Chemist Warehouse sales across Australia and internationally, announces a joint venture to enter the UK market, and secures a major distribution centre lease in New Zealand to support its expanding network.
- Chemist Warehouse Australian sales up 16.7%
- Joint venture signed to enter UK market
- New Zealand distribution centre lease secured
- International sales growth led by NZ, Ireland, Dubai, China
- GLP1 sales continue to drive basket size growth
Chemist Warehouse Sales Momentum Sustains
Sigma Healthcare Limited (ASX:SIG) has delivered another strong sales update for its Chemist Warehouse branded stores, with Australian outlets reporting a 16.7% sales increase year to date through April 2026, supported by a 14.4% like-for-like growth. International stores, spanning New Zealand, Ireland, Dubai, and online sales in China, outperformed with 24.7% sales growth and 11.8% like-for-like gains. This performance persists even as the company cycles through the structural uplift from GLP1 product sales experienced in the second half of 2025, which continue to contribute to higher basket sizes; GLP1 customers now purchase 40% more units on average.
The sustained momentum builds on Sigma's recent financial results, where a 15% revenue surge was driven by both domestic and international expansion efforts, alongside operational synergies and new store openings. This latest sales data aligns with the company’s strategy to leverage its Chemist Warehouse brand across multiple markets, reinforcing its position as a defensive yet growth-oriented retail player 15 percent revenue surge.
UK Market Entry via Joint Venture with GreenLight
In a significant strategic move, Sigma has inked a Memorandum of Understanding with Greenlight Healthcare Limited, an employee-owned London-based pharmacy group, to launch Chemist Warehouse in the United Kingdom. Under the joint venture, Sigma will acquire a 75% stake in selected GreenLight stores, licensing its brand and retail expertise, while GreenLight retains 25% and continues to manage dispensary and professional services. The partnership plans an initial rollout of up to five rebranded stores, starting with a site on Hoxton Street in northeast London, with options to expand further depending on early success.
This measured entry into the UK market marks a new chapter in Sigma’s international expansion pillar, following proven success in markets like New Zealand and Ireland. The JV structure leverages GreenLight’s local operational knowledge combined with Sigma’s retail model, aiming to replicate the Chemist Warehouse formula in a competitive and complex market. This approach also echoes Sigma’s broader integration and synergy efforts highlighted in recent years, including supply chain consolidations and store network growth merger synergy boost.
New Zealand Supply Chain Investment to Support Growth
To underpin its expanding New Zealand footprint, Sigma has secured a 15-year lease for a 23,000 square metre distribution centre in Wiri, south of Auckland. The temperature-controlled facility will include specialized storage such as vaults, cool rooms, and freezer units to meet regulatory demands and support a growing network that Sigma aims to expand to over 100 Chemist Warehouse stores long term. The company plans to invest approximately A$40 million in capital expenditure through FY27, focusing on warehouse automation, racking, and technology upgrades. Operations are set to commence in September 2026, with full automation expected by late 2027.
This investment is a critical step in strengthening Sigma’s supply chain resilience and efficiency, particularly amid ongoing global geopolitical challenges and rising fuel costs. The new distribution centre is expected to enhance product availability and operational performance for the New Zealand network, which has shown consistent sales growth and remains a key international market for Sigma supply chain efficiencies.
Navigating Challenges While Pursuing Growth
CEO Vikesh Ramsunder emphasised the company’s strong operational footing and defensive business model, highlighting the enduring benefits of GLP1 sales and the strategic international expansion. Despite rising fuel costs and global uncertainties, Sigma reports no material supply disruptions, supported by significant inventory holdings. The company’s focus remains on measured growth, operational excellence, and leveraging its brand internationally through partnerships like the UK JV and supply chain investments in New Zealand.
Bottom Line?
Sigma’s international expansion and supply chain investments position it for sustained growth, but execution in the UK market and automation rollout in New Zealand will be key to watch.
Questions in the middle?
- How quickly will the UK JV stores scale beyond the initial five locations?
- What impact will the new New Zealand distribution centre have on operating costs and service levels?
- Can Sigma sustain GLP1-driven sales momentum amid evolving market conditions?