Where have all the photos gone?

For many customers, community pharmacies have historically been the destination of choice for dropping off camera films for processing and collecting them a few days later, or earlier if express services are offered.

However, the move towards digital photography and away from traditional film processing may leave pharmacy proprietors uncertain about whether it is still profitable to install a photo lab in their premises.

The sale of over six million digital cameras in the UK last year and the affordability of home printers has seen a number of specialist photography retailers close.

Recent trends

Nigel McNaught, operations manager at Photo Marketing Association International told Retail Round-up that there has been a 25 per cent decrease in the sales of camera film per year over the past few years, and the number of prints being made from film has dropped accordingly.

He explained that despite the growth in sales of digital cameras, people were not initially printing out their pictures, but were just storing them on computers or sharing them electronically. However, the number of prints being made from digital sources is now increasing, and is finally offsetting the decrease in prints being made from film.

Mr McNaught explained that there are three options for printing photographs from digital cameras:

• home printing
• online printing services
• visiting a retail outlet

Over the past three to four years the majority of photographs were being printed at home. However, quality issues and the cost of printer cartridges are encouraging more customers to return to professional outlets, and the proportion of prints being made at home has now fallen to below 50 per cent.

This year’s figures show that about 7 per cent of people order their prints online, 45 per cent produce their own prints at home and 48 per use a retail outlet. Mr McNaught says that these proportions are expected to stabilise, but the number of prints being made in all areas is set to increase.

Business options

Raj Nutan, pharmacy business manger at the National Pharmacy Association, says that photo printing can now be profitable for community pharmacies, especially those located near tourist attractions or in areas where customers take frequent holidays.

“It is not for everyone,” he says, “but for some pharmacists there is still a business opportunity to attract new customers and increase turnover.” He adds that some pharmacies are located in areas where they may be the only retail outlet offering photographic services for two or three miles. “If there is customer demand for it you would be foolish not to offer it,” he said.

Mr Nutan explained that pharmacies have traditionally offered offsite processing or installed their own minilabs. Apart from time, a disadvantage of offsite processing is that customers using digital cameras may be reluctant to part with their memory card. A solution to this may be for the the store to install a compact disc burner so that the CD is sent to the wholesaler instead.

Today’s minilabs are capable of producing prints from both film and digital sources. They can provide a faster service than outsourcing to a wholesaler but, because they are expensive to buy, Mr Nutan says proprietors should be certain of customer demand before installing one. Space may also be an issue since minilabs can measure about 3m by 5m.

A third option is to install a photograph kiosk, where customers can insert their memory card and print off their own photographs using a simple touch screen computer. Kiosks might be a better option for an independent retailer who is new to the photography market since they are often leased rather than purchased. There are several types of kiosk available and they can be networked to a minilab, which may be useful for a small retail chain.

Linked opportunities

Pharmacies that offer a photography service should also consider stocking camera accessories and items such as batteries, memory cards and photograph albums. Sales of single use cameras peaked over the past few years and, although demand appears to be slowing down, they remain popular for situations when customers might not want to take their digital camera out.

Mr Nutan adds that customers coming in to the pharmacy to use the photographic service will also be exposed to any health promotion campaigns running in the store, and might be encouraged to bring in their prescriptions if they do not already do so.

The NPA will shortly be publishing a photography resource pack containing advice to members about how to optimise these services. To register your interest in receiving the pack telephone 01727 858687, ext 3257 (e-mail pharmacybusiness@npa.co.uk).