Chemist Warehouse Optometry is building momentum with a distinctive approach to practice acquisitions that prioritises clinical investment and local autonomy over standardisation. The group is on track to open its 10th practice in three states by the end of the month.

The group was established in 2023 under the banner of Chemist Warehouse, which is owned by the publicly listed pharmaceutical company Sigma, and until now has been keeping a low profile.

However, behind the scenes, joint managing directors Charles Hornor and Peter Larsen have been busy evolving the model that originally aimed to co-locate optometry within or adjacent to a pharmacy business. And they’ve been acquiring independent practices.

The fledgling network now has eight practices: the first two were opened within Chemist Warehouse premises, six were recently acquired stand-alone practices, and two more will come on board before Christmas. Plus, Mr Hornor said, there is a strong pipeline developing for 2026.

Mr Hornor said the decision to focus on acquiring independent practices was made because “Chemist Warehouse is growing at such a pace, it’s almost impossible to get any space next to or within one of their stores”.

However, he said the plan is “to create pathways between local pharmacists and the local optometrists within the broader network”.

The acquired practices include Medispecs Camden (Sydney), Ray Proust Optometrist in Figtree (Wollongong, NSW), Lithgow Optical (Central West NSW), Mt Isa Optical (Queensland), Chris MacMahon Optometrist at Sydney University, and Tony Collivas Optometrist in Sunnybank Hills (Brisbane). These join the two flagship stores within Chemist Warehouse locations – Malvern Eyecare (formerly OW Malvern, Melbourne) and Campbelltown Eyecare (formerly OW Campbelltown, Greater Western Sydney).

TECHNOLOGY INVESTMENT AS KEY DIFFERENTIATOR

What distinguishes Chemist Warehouse Optometry’s model is a minimum AU$250,000 technology investment in each acquired practice. The package includes ultra-widefield cameras, optical coherence tomography (OCT) imaging, and other advanced diagnostic equipment, all integrated through a centralised platform using Pliny software.

This cloud-based system creates a unified patient record accessible across all network locations. If a patient from Figtree finds themselves in Brisbane with an eye concern, their complete history and images are immediately available at any Chemist Warehouse Optometry practice.

Mr Hornor said the technological infrastructure also tracks clinical outcomes and detection rates, allowing practitioners to compare their performance anonymously and learn from colleagues.

And, as the network grows, the evidence base – and the networking opportunities that spring from it – will become increasingly valuable.

LOCAL AUTONOMY PRESERVED

Another distinguishing feature of the Chemist Warehouse Optometry model is the freedom given to practices to choose their own frame ranges.

“We have never considered for a moment that we were the experts on what sells in a particular practice,” Mr Hornor said. “The team that operates front of house knows what sells and they’ve got the information in the PMS (practice management system) to back it up. Why would you mess with that?”

This philosophy of maintaining autonomy extends to the co-branding model. Practices maintain their historical names and identity while indicating their connection to the larger organisation. And rather than the distinctive yellow Chemist Warehouse livery, optometry has adopted a vision-focussed “optometry blue”.

“Practice owners aren’t slow to tell you if they don’t like something,” Mr Hornor observed. “With the co-branding, we wondered what they were going to think. They’ve all come back really, really happy with the way it looks.”

ATTRACTIVE EXIT STRATEGY FOR INDEPENDENTS

The acquisition model targets established practitioners aged 55 and older who are considering succession planning. At this age, Mr Hornor explained, sellers can benefit from a transition-to-retirement exemption of up to $500,000 on capital gains made on the sale of their business.

Selling optometrists commit to remaining in the practice for a minimum three years, though Mr Hornor said many are discussing longer transitions. The structure includes a substantial upfront payment of 70% of the purchase price with 10% paid each year over the ensuing three years, tied solely to them remaining with the practice. Additionally, they get a share of profits over and above an agreed level of revenue, all of which is paid as part of the purchase price.

“So, it’s a really good model for optometrists considering their retirement,” Mr Hornor said. “And it’s a great model for their team because we’re not changing things dramatically. We’re allowing the front of house team to continue to select and curate the frame ranges. And we are focussed on offering designer frames with premium lenses, so we’re not taking them into some sort of cut-price competition war.”

LEVERAGING THE CHEMIST WAREHOUSE NETWORK

One significant advantage for acquired practices is access to Chemist Warehouse’s vast resources, which include back office, human resources, legal advice, and local marketing support for targeted marketing. “We can promote each local Chemist Warehouse Optometry practice through the local Chemist Warehouse database,” Mr Hornor said. “This is very helpful and cost-effective as a first stage in local area marketing and promotion.”

NATIONAL EXPANSION PLANS

Looking ahead, Chemist Warehouse Optometry, led jointly by Mr Hornor and Mr Larsen, is pursuing national expansion wherever successful independent practices exist.

“We’re getting calls from owners saying they like the sound of our model because legacy is really important,” Mr Hornor said. “They don’t want to see the practice diminish over the next few years. They want it to go from strength to strength so they can walk past proudly and drop in and feel like they’re still part of it.”

The company isn’t ruling out international expansion, noting Chemist Warehouse’s rapid growth in NZ, but the current focus remains on building the Australian network through strategic acquisitions of quality independent practices.