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Warehouse drops pharmacy hopes

By Phil Boeyen, ShareChat Business News Editor

Tuesday 7th August 2001

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Retail group The Warehouse (NZSE: WHS) will be hit by a one-off charge of $1.5 million after dropping plans to sell pharmacy products.

The company says it has terminated its joint venture arrangement with Care Chemists, which was set up two years ago with the expectation of a change in current legislation.

"In 1999 when The Warehouse entered the joint venture, there was an expectation that the pharmacy business would be deregulated thereby permitting pharmacies to be located within The Warehouse stores," the company says.

"With little prospect of pharmacy deregulation, the company has decided to exit this business."

The company says it will no longer have a financial interest in the Care Chemist franchise business or the individual Care Chemist pharmacies and will incur an estimated after-tax charge of $1.5 million in the financial year just ended.

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