54 Priceline Pharmacies in Receivership: What It Means for Your Scripts and Sister Club Points

Breaking news for Australian pharmacy customers: On December 18, 2025, Wesfarmers’ subsidiary, Australian Pharmaceutical Industries (API), appointed receivers to 54 Priceline-branded pharmacies. While the iconic pink branding is a staple of Australian high streets, this financial collapse involves a specific franchisee network—the Infinity Pharmacy Group (IPG)—rather than the entire Priceline brand.

For loyal customers and retail investors, this development signals a seismic shift in the local pharmacy sector. Triggered by rising operational costs, federal policy changes regarding 60-day dispensing, and Wesfarmers' strategic pivot toward "pure beauty" retail through its new Atomica brand, the landscape of Australian healthcare retail is changing rapidly.

Here is everything you need to know about which stores are affected, why your local chemist is under pressure, and what the future holds for your Sister Club rewards.

Which Stores Are Affected? (The Infinity Pharmacy Group Collapse)

It is important to clarify that Priceline itself has not collapsed. Instead, the financial distress is isolated to the Infinity Pharmacy Group (IPG), which was the largest franchisee within the Priceline network.

Founded in 2007 as a family business, IPG expanded rapidly to operate approximately 120 sites across the country. However, following a deterioration in the group's financial position, API—which acts as the primary financier and wholesale supplier—exercised its rights as a secured creditor.

The Specifics of the Receivership

The Action: API appointed partners from KPMG as receivers and managers to 54 specific pharmacies that were directly financed and supplied by API.
Broader Administration: Simultaneously, partners from Teneo were appointed as voluntary administrators for the broader Infinity Pharmacy Group entities.
Locations: The affected stores are spread across major population centres in New South Wales, Victoria, Queensland, and Western Australia.

Despite the appointment of receivers, KPMG has confirmed that these 54 stores will continue to trade. Employees have been retained and are being paid in the ordinary course of business while the receivers assess the businesses for an orderly sale process expected to commence in early 2026.

This collapse has also sent ripples through the supply chain. Medical equipment supplier Paragon Care revealed it is owed $46.9 million across 101 IPG stores, a disclosure that saw its share price drop 13.5 per cent immediately following the news.

Why Is This Happening? (The 60-Day Dispensing Crunch)

While IPG’s specific debt levels were a major factor, the Pharmacy Guild of Australia (PGA) has pointed to structural changes in the industry as the root cause of this instability. The "catastrophic impact" of the federal government’s 60-day dispensing policy, introduced in September 2023, has fundamentally altered the profitability of community pharmacies.

The Financial Hit to Pharmacies

The 60-day dispensing rule allows patients to receive two months' worth of medication for the price of a single co-payment. While this is a win for household budgets—saving patients up to $46.92 per year per medication—it has slashed the dispensing fees pharmacies receive from the government.

According to the PGA, total script volumes declined by 1.3 per cent in the 2025 financial year, a sharp reversal from the 2.2 per cent average annual growth seen in the previous five years. For high-volume dispensaries like those operated by IPG, this reduction in foot traffic and fee revenue has been devastating.

Spiralling Operating Costs

This revenue drop has coincided with "exponentially" growing operating costs. Spiralling energy prices, burdensome tax rates, and increased compliance costs have squeezed margins, making it difficult for debt-heavy operators to service their financial obligations. The PGA noted that while the 8th Community Pharmacy Agreement (8CPA) provided some support payments, they were insufficient to offset the loss of dispensing fees for many businesses.

Wesfarmers' Strategic Pivot: Enter ‘Atomica’

While its pharmacy partners face headwinds, Wesfarmers Health—which acquired API for $764 million in 2022—is executing a major strategic pivot. Recognizing the regulatory constraints and margin pressures of the traditional pharmacy model, Wesfarmers has launched a new retail concept: Atomica.

What is Atomica?

Atomica is a "pure beauty" and wellness retail brand designed to bypass the strict pharmacy ownership laws that prevent corporations from owning dispensaries in Australia.

The Concept: Positioned as an inclusive beauty retailer with the tagline "Let's glow Australia," Atomica focuses on non-prescription skincare, cosmetics, and wellness products.
The Pilot: The first Atomica store opened in late 2024 at Castle Towers, Sydney, replacing a former Priceline site.
The Strategy: By removing the dispensary, Wesfarmers can own these stores outright, giving them total corporate control and the ability to capture higher margins on beauty products without the regulatory burden of the Pharmaceutical Benefits Scheme (PBS).

Wesfarmers plans to expand the Atomica network throughout 2025, with industry observers speculating that many non-pharmacy Priceline outlets could be converted to this new format. This bifurcation allows Wesfarmers to protect its pharmacy assets while aggressively pursuing the lucrative beauty market.

What Does This Mean for Customers?

If you are a regular patron of a Priceline Pharmacy, particularly one involved in the IPG receivership, you may be concerned about your access to medication and loyalty rewards.

1. Script Access Remains Secure

The receivers have explicitly stated that the affected pharmacies will continue to trade while buyers are sought. This means you can still fill your prescriptions, access advice from pharmacists, and purchase over-the-counter medication at these locations.

2. Sister Club Points are Safe

The Priceline Sister Club program, which boasts over 9 million members, is owned and managed by API/Wesfarmers, not individual franchisees like IPG. Your points, status tier (such as Pink Diamond), and quarterly rewards are secure and can be used across the entire network, including the 54 stores currently in receivership.

3. OnePass Integration

Wesfarmers is deepening the integration of Priceline into its broader retail ecosystem. Priceline Sister Club members can now link their accounts to OnePass, the group’s subscription membership program. This integration provides benefits such as free delivery and 365-day change-of-mind returns, allowing for cross-shopping benefits between Kmart, Bunnings, Officeworks, and Priceline.

Future Outlook: A Changing High Street

The collapse of the Infinity Pharmacy Group is likely a harbinger of further consolidation in the Australian pharmacy sector. As the full impact of 60-day dispensing continues to reshape the industry's economics, smaller operators and over-leveraged franchise groups may struggle to survive.

For Wesfarmers, the future lies in a dual strategy: stabilizing the Priceline pharmacy network by transferring distressed stores to stronger operators, while simultaneously building a corporate-owned beauty empire through Atomica and its network of Clear Skincare and SILK Laser clinics.

For the consumer, this likely means a more corporate, streamlined healthcare retail experience, with a clearer distinction between where you go for your "health" (Priceline Pharmacy) and where you go for your "glow" (Atomica).

FAQ

Q: Is my local Priceline closing down? A: Not necessarily. Only 54 stores owned by the Infinity Pharmacy Group have been placed in receivership. The receivers (KPMG) have confirmed these stores will continue to trade as normal while new owners are sought.

Q: Will I lose my Sister Club points? A: No. The Sister Club program is owned by API/Wesfarmers, not the individual franchisee. Your points and rewards remain secure and can be used at any Priceline store.

Q: Why are pharmacies struggling with 60-day dispensing? A: The policy allows patients to buy two months of medication at once. While this saves patients money, it halves the dispensing fees pharmacies receive from the government and reduces foot traffic, cutting into their overall revenue.

Q: What is Atomica? A: Atomica is a new beauty and wellness retail chain launched by Wesfarmers Health. Unlike Priceline Pharmacy, it does not have a dispensary, meaning it focuses purely on cosmetics and skincare, allowing Wesfarmers to own the stores directly.

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