Retail staff cuts needed in some pharmacy companies
Community pharmacy companies that spend too much on pay need to shed staff to remain competitive, according to the latest Plimsoll portfolio analysis.
Plimsoll says that 45 companies need to cut 5,000 jobs in order to compete
with the 113 most efficient pharmacy businesses that generate sales of £139,000
and £9,000 profit per employee. The UK average for pharmacy companies
was sales of £118,000 and £5,000 profit per employee last
year. The 45 least efficient companies are generating only £75,000
sales per employee and spend 18 per cent of their turnover on salaries.
Plimsoll analyst David Pattison said that salaries need to be less than
11 per cent of turnover.“For 25 [of the 45 least efficient companies]
it’s a question of pure survival, as each one is currently under
severe financial pressure. On the other hand, 20 of them are fundamentally
well run companies with only low productivity letting them down,” he
said. |
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