The Pharmacy Co-op group for independent pharmacies is going from strength to strength. It now has 40 members who are growing their pharmacy’s retail sales and profits in a difficult retail environment.
Ian Caulfield, CEO of Composite Retail Cooperative says that The Pharmacy Co-op same-store retail sales increased +3% in 2019, while sales and customer numbers in the total pharmacy market* declined over the year.
Ian emphasises that the key benefit of joining The Pharmacy Co-op is that members adopt an OTC formulary which identifies a Core Range of the 1000 top-selling retail products.
In return for better merchandising of this Core Range in their planograms, members receive discounts from their preferred supplier partners. These discounts are passed on by the cooperative wholesalers (CDC and PWL) on every retail order placed.
In the three months to 31st December 2019
the group’s sales of core products from preferred suppliers
grew by +9% over the previous year.
John Saywell of RPM Retail says that the ongoing process of range rationalisation at the group is making a huge difference to members’ return-on-investment. In 2019 The Pharmacy Co-op members achieved an increased retail gross profit margin of +1%, along with a -4% reduction in the number of retail products carried.
“Focusing on never being out-of-stock of the core range of best-selling products is a win-win-win situation” Saywell says. “Customers find it easier to shop, suppliers receive increased support for their core products and pharmacies make improved sales and profits”.
The Pharmacy Co-op is holding its second annual group conference in Queenstown in March.
*RPM same-store sales data 2019 Vs 2018 from 106 pharmacies.