Chemist Warehouse’s Priyash Paray shares insights on wellness retail trends
Technology is integral to Chemist Warehouse’s strategy, enabling a seamless physical and digital retail blend, says the brand’s CEO
29 January, 2025
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Priyash Paray, CEO of Chemist Warehouse UAE, shares insights into the evolving health, wellness, and beauty retail landscape in the UAE.
As the Australian pharmacy brand expands its presence in the region, Paray discusses key trends, challenges, and strategies driving Chemist Warehouse’s focus on affordability and quality.
With a focus on consumer behaviour, regulatory dynamics and sustainability, Paray outlines how the retail giant is positioning itself to meet the UAE’s growing demand for accessible, high-quality health products.
What key trends in the health, wellness, and beauty sectors are shaping the UAE retail landscape today?
Driven by a robust healthcare and wellness sector and rising consciousness, the UAE pharmacy market is steadily expanding. According to Statista, it’s projected to reach around $5.27bn by the end of 2024, with per capita revenue close to $550.
Government investments in healthcare infrastructure and an expanding population further bolster this growth, creating opportunities to offer a broad range of health and wellness products.
Pharmacies now cater to evolving consumer expectations for accessibility, value, and quality. This aligns with the UAE’s goal of becoming a top global destination for healthcare and wellness, reflecting a market where health, beauty, and well-being increasingly overlap.
What are the major challenges for retailers entering the UAE market, especially in terms of consumer expectations and regulatory frameworks?
The UAE is the Middle East’s retail powerhouse, propelled by a strong economy and a tech-savvy population. Navigating a market with well-established global and regional players demands strategic innovation to stand out.
Price sensitivity also remains pivotal: a sizeable segment of consumers seeks affordability, making profitability a key focus for retailers hoping to thrive in this dynamic landscape.
How has price sensitivity evolved among UAE consumers in the post-pandemic era?
UAE consumers are increasingly seeking affordability and transparency in healthcare and wellness, reflecting a shift toward value-driven spending. Chemist Warehouse’s ‘lowest price promise’ responds to these needs by offering real brands at real savings.
Our research indicates some consumers avoid pharmacy chains due to high pricing; by keeping costs low without compromising quality, we ensure broader access to health and wellness products. As more shoppers look for budget-friendly options, transparent pricing and a clear value proposition become crucial. Combining affordability with quality positions Chemist Warehouse to serve the UAE’s diverse communities.
Chemist Warehouse’s commitment to affordability extends beyond seasonal promotions. With our lowest price guarantee policy, we match prices and beat them, offering 10 per cent off the price difference back to the customer if we fall short.
The promise covers 15,000 SKUs (non price-regulated ones) daily, reinforcing our mission to keep health and wellness products genuinely accessible.
What role does technology play in transforming the shopping experience for UAE residents?
Technology is integral to Chemist Warehouse’s strategy, enabling a seamless physical and digital retail blend. Ahead of our upcoming e-commerce launch, we’re leveraging proven online approaches to offer convenient access to thousands of health and wellness products. Our in-store operation paired with robust online channels aims to meet consumer expectations for speed, transparency, and value while extending our reach across diverse communities.
How are retailers addressing sustainability concerns in the health and beauty categories, and what strategies resonate most with consumers in the UAE?
Chemist Warehouse focuses on affordability, accessibility, and authenticity. While we don’t outline specific sustainability initiatives for the UAE, our broader strategy ensures the entire value chain — customers, suppliers, and distributors — operates efficiently.
By negotiating with suppliers to maintain competitive prices and consistent quality, we reduce waste and returns, indirectly supporting responsible practices.
This approach meets consumer calls for transparency and ethical sourcing without compromising cost-effectiveness. As the UAE increasingly emphasises environmental and social responsibility, we remain open to refining our model. Our goal is to offer real brands at real savings while maintaining the trust of our customers.
What opportunities exist for creating a more accessible healthcare ecosystem in the UAE, particularly in terms of affordability and awareness?
With our strategy, Chemist Warehouse aims to make health and wellness products more affordable and accessible in the UAE. The country’s strategic location serves as a gateway to the broader Middle East, offering unmatched exposure and accessibility for healthcare brands.
The country’s thriving market and diverse community drive demand for innovative healthcare and retail solutions, while government-led initiatives like the Dubai Healthcare Strategy 2030 reflect the UAE’s commitment to becoming a premier health and wellness destination – an environment well suited to Chemist Warehouse’s value-focused model.
Additionally, streamlined processes and no foreign ownership restrictions encourage rapid growth and innovation, fostering an ecosystem where affordability, accessibility, variety, and trust can flourish.
What are some of the challenges in balancing affordability with maintaining product quality and authenticity in the pharmaceutical retail sector?
Maintaining low prices while ensuring product integrity involves close negotiation with suppliers and rigorous oversight. Chemist Warehouse relies on a model proven over decades, emphasising quality checks and compliance with local regulations. We collaborate with ethical, authorised distributors to verify authenticity, guaranteeing that cost savings don’t compromise efficacy or safety.
By structuring our value chain so that customers, suppliers, and distributors all benefit, we maintain competitive pricing and consumer trust.
This balanced approach reflects our core principle: the consumer must win. Striking the right equilibrium between affordability and product quality remains essential in the UAE’s competitive pharmaceutical retail scene.
How is Chemist Warehouse leveraging its global buying power to bring value to the UAE market, and what challenges has it encountered?
Chemist Warehouse taps into its global footprint — more than 650 stores across Australia, New Zealand, Ireland, China, and now the UAE — to secure favourable terms with suppliers. This large-scale buying capacity supports our model, allowing us to pass on savings. We introduce diverse products, including those not widely available in the region, to serve various consumer needs.
However, operating within an insurance-driven market alongside established local players can present regulatory and consumer-trust building hurdles. We address these challenges by aligning global best practices with UAE standards, ensuring affordability, authenticity, and compliance. Through strategic partnerships and consistent pricing, we aim to deliver value without sacrificing quality.
What insights or trends in consumer behavior influenced Chemist Warehouse’s decision to enter the UAE?
Chemist Warehouse recognised a strong demand for affordability, convenience, and exclusive product offerings in the UAE. Drawing on decades of experience in multiple markets, we concentrate on competitive & transparent pricing and product variety – an approach we believe resonates with UAE consumers seeking value in health and wellness.
Our one-stop-shop model provides trusted health, wellness, and beauty brands at everyday low prices, while a customer-friendly store layout appeals to a preference for hassle-free shopping. We also introduce exclusive launches, like the recently launched Lionel Messi Eau De Parfum, and sought-after products from Australia and New Zealand.
This blend of affordability, accessibility, and unique merchandise anchors our expansion strategy, including a recently opened second store in Bur Juman Mall in Dubai and a planned e-commerce platform.
We aim to open more stores in 2025 and continue expanding over the next decade, creating a truly inclusive pharmacy experience in the UAE.
