Cosway to have 1,000 pharmacies by 2016

From left: Berjaya Corp Bhd chairman Tan Sri Vincent Tan, Ismail Sabri and Chuah at the opening of Cosway's new pharmacy in Berjaya Times Square.

KUALA LUMPUR (Jan 19, 2012): Cosway (M) Sdn Bhd plans to have 1,000 "free-concept" pharmacy stores across the country in the next five years.

Other than selling Cosway products, a free-concept outlet also offers pharmaceutical products and services.

Cosway Corp Ltd chairman and CEO Al Chuah said it will convert 500 of its existing 800 Cosway stores to these free-concept stores as well as open 500 new such stores, which will cost RM500,000 each including inventory and renovations.

This year alone, it will spend RM10 million to put up 200 new pharmacies through both the conversion of existing stores and setting up new ones.

"Under the free-store concept, we pay the rental, utilities and also supply products on consignment. Pharmacists or members who operate these stores not only enjoy profits from store sales but also profit from their network sales," Chuah told reporters at the opening of its first free-concept pharmacy in Malaysia here today.

Cosway also plans to expand globally in the first quarter, to new markets such as China, Russia, Mexico and Colombia.

The company opened its first free-concept pharmacy in Japan last month and in China on Wednesday.

Chuah said Cosway aims to open pharmacies in all 30 provinces in China, as well as over 50 outlets each in Russia, Mexico and Colombia during the first year.

Cosway now has about 2,000 free-concept stores in 15 countries, including Australia, New Zealand, South Korea, Japan, the US and the UK.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, who officiated the opening, said the direct-selling industry is expected to contribute RM10 billion to the country's gross national income this year, compared with RM8.9 billion last year.

His ministry had also renewed Cosway's direct selling licence for 10 years, from 2011.

He added that currently there are 556 licensed direct-selling companies in Malaysia, with some new applications in the pipeline.

"We will also introduce the code of ethics for direct selling this year. It is now in the final draft," Ismail Sabri said.

Source: http://www.thesundaily.my/news/271988