Independent pharmacy alive and well in the United
States
Independent pharmacies have been termed the comeback
kids of retailing in the United States because of the recovery in their
sales levels in recent years.
Glenn Hall, general manager of Leader Drug Stores,
a 2,300 member association, said that the US Consumer Reports nation-wide
survey for October, 1999, described independents as the best pharmacies
in America for personal attention, speed and efficiency of dispensing
and for the provision of medical information.
The recovery in their position in the pharmacy market
was such that prescription volume was up 6,000 per store in two years,
to an average of over 47,000 items a year by 1999, and annual sales were
up 15 per cent to $2m. The rise was expected to continue.
Despite this, independent pharmacists on both sides
of the Atlantic faced similar issues. Both found it hard to get paid for
providing care, rather than products, both faced intense retail competition,
and both faced increasing costs and lower margins making them less profitable
than other retail businesses. Both also faced pressure from health maintenance
organisations or the National Health Service to keep it that way.
Mr Hall explained that the answer to the problem
is to form an association of independents that presents a brand image
and looks like a multiple while still emphasising its local strengths.
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