Rent can be such an enormous burden on a pharmacy operation and it’s significant
impact upon the success or otherwise of a business cannot be overstated.
Even discounters such as Chemist Warehouse rely on the concept of low rent, large
area to accommodate their big box cookie cutter chain stores.
No such site exists in the Sydney CBD.
Before St James Pharmacy moved to it’s current location – when it was
located within the Piccadilly Centre on Pitt St – the rent was as high as
$3500 per square metre. In a shop as small as we had at the time, the cost of
occupancy – so called – amounted to $200,000 per annum. This is greater than
double the net profit of any pharmacy I have ever owned.
It required a steadfast, consistent effort of trading 7 days a week to navigate
through the difficulty of raising the necessary funds just to pay the rent.
Just to keep the doors open.
No money, no rent cheque. No rent cheque, no business.
Who is coming through the door now?
Couple this with an inflexible, ruthless city landlord named Stockland and you have
the makings of a business which at best is lucky to stay operational and at worst
is headed for the horror of bankruptcy and dissolution.
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