Retail media unit Chemist Warehouse lost $150 million in two years ahead of Sigma merger decision

Chemist Warehouse’s retail media unit has shrunk by nearly $150 million over the past two years as it faces a tightening advertising market and growing competition from rival drugstores and grocery giants.

The pharmacy giant, which has 637 stores mainly in Australia, makes a significant portion of its revenue from selling advertising space in its stores, online, on TV shows and in newspapers it owns. This category known as retail mediaIt’s worth $1.6 billion, according to investment bank Morgan Stanley. Chemist Warehouse accounts for almost a third of that, while supermarket giants Woolworths and Coles are growing steadily.

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