Updated: Feb 22, 2020
Waterloo Pharmacy is a small suburban pharmacy in Lower Hutt with a long history of supporting its local customers with their healthcare needs.
New pharmacy owner Chris Young spent his first 12 months getting to know this high-needs community, and he is now implementing carefully planned changes to strengthen the pharmacy’s performance .
The pharmacy was in need of a total facelift, with every aspect of the premises requiring attention when Chris purchased it. It was important that any changes made were accepted by the Waterloo Pharmacy customers who had strong one-on-one relationships with “their” pharmacy.
The pharmacy had out-of-date shelving, counters and décor. It was cluttered and was carrying too much gifts and toiletries with over $8,000 Dead Stock in the shop. Retail margins were poor and sales were declining. The shop was uninviting and stock lacked any clear category merchandising .
Waterloo Pharmacy joined The Pharmacy Co-op Retail Group in February 2019. This group supports independent pharmacy owners with better buying and merchandising of a core range of 1000 top-selling products using the RPM smarter ordering software. Members receive permanent discounts on every retail order from key suppliers through their co-operative wholesaler.
By following the recommendations in the RPM retail benchmarking software Chris has steadily moved to clear Dead Stock and adopt the core range of Pharmacy Co-op retail products.
The Pharmacy Co-op consultants prepared a low-cost shop refurbishment plan which involved new paint, carpet, counter, shelving and signage – plus a layout and planograms for the shop.
Before and After
Since joining The Pharmacy Co-op, Waterloo Pharmacy has improved their retail sales and significantly reduced their Dead Stock levels. The retail area has been modernised within a realistic budget.
The improved product range and merchandising is attracting new customers, strengthening the pharmacy’s community appeal.
OTC sales increased. Up by 14% overall – customers love the new shop look and feel!
Better Gross Margin. An extra 5% profit margin on retail sales.
Range Rationalisation. The pharmacy operates with 500 fewer SKUs in their retail area.
Less dead stock. Over half of dead stock cleared.
Smarter Ordering. The pharmacy saves time using the RPM ordering software.
Consistent reporting. Online access to store KPIs for the pharmacy owner and retail staff.