Company owner Niels Bowen has bought the Morgan's Chemist licence and plans to open a store within three months under the name of Chemist Outlet.

Orana Mall CountryPharm owner and pharmacist Simon Blacker is unconcerend about a low-priced pharmacy moving in.

"There are nine pharmacies in Dubbo and we are already competing with each other as well as four large supermarkets, two health food stores, and a Priceline store which together stock many of our over-the-counter products," he said.

"If we weren't all competitive we wouldn't be in business."

Chemist Outlet, a retail outlet of the company Pharmacy By Mail, will be offering the same services as a regular pharmacy, but at mail order prices without the postage fee, according to company partner Jayne Cannon.

"People can save up to 50 per cent on over-the-counter products in store and scripts not on the National Health Scheme," she said.

However Mr Blacker has questioned Chemist Outlet's ability to offer significant savings to customers.

"Generally 70 per cent of a pharmacy's business is essentially the sale of prescription drugs and 90 per cent of scripts generally can't be discounted because they are subsidised by the government," he said.

"Because of this everyone pays the same amount and it's a real misconception that people can get scripts cheaper."

The Chemist Outlet's Dubbo store will be the first of the chain in the central west, but its location in Dubbo is yet to be confirmed.

"We have not finalised our location yet but we are planning to be located in the main retail centre of Dubbo."

Highlighting the fact that Chemist Outlet is not the first national brand chemist to come to Dubbo, Mr Blacker believes a national name will not carry that much clout.

"Soul Pattinson is a national chemist chain and it has been in Dubbo for years," he said.

"The difference is that Soul Pattinson has been locally managed."

Ms Cannon says Chemist Outlet will be employing locals to get the store up and running, but Mr Blacker believes the fact it is not locally owned and operated may work against them.

"Rural communities such as Dubbo are always being encouraged to shop locally and all the other pharmacies in town are locally owned and operated; because of this they contribute to the community.

"With a shortage of pharmacists willing to work and live in rural communities I really wonder who the pharmacist at this new business will be. I imagine it will be a few rotating locum pharmacists and in that case where is the continued care?"

In reply, Ms Cannon said every chemist had its point of differentiation and competition would only benefit the people of Dubbo.

Owner of three local chemists, pharmacist Tony Lawler also believes in a bit of healthy competition.

"Different competitors bring a different dimension to the market," he said.

"As long as we are doing the very best for our customers that's all that matters."