Over the last 4 years I have written a number of articles about the challenges and opportunities facing community pharmacies.
The industry has experienced pressure from a “perfect storm” consisting of:
• evolving consumer spending habits
• the rise of discounters
• a constrained healthcare workforce
• under-payment for dispensing
Here’s some of the key themes and insights:
1. The retail apocalypse and bifurcation of the pharmacy market:
• The traditional pharmacy business model is under siege from online retailers, discount pharmacies, and changing consumer behaviors exacerbated by the COVID-19 pandemic.
• Shopping malls and central business districts, once prime locations for pharmacies, are experiencing declining foot traffic, impacting pharmacy revenues.
• The retail market is bifurcating, leaving pharmacies with two options: compete on price like discounters or differentiate through specialised services and expertise.
“The middle ground in pharmacy is steadily declining as consumers choose to shop either where they get the best value for money or where they get the best service and advice.”
2. Pharmacy’s expanded role in healthcare:
• Pharmacies must move beyond dispensing medications and embrace a more holistic role in healthcare.
• New services like health screening, instore clinics, patient health education and lifestyle medicine consulting can improve health outcomes and create new revenue streams.
• Leveraging pharmacies as accessible healthcare hubs can alleviate strain on the overall healthcare system.
“In the coming decades, pharmacists are expected to become more integral within the healthcare system and they will take the load off both GPs and hospitals. Rather than simply dispensing medication, pharmacists must be compensated for their patient care skills.”
3. How to adapt for survival and success:
• In-store services: Diversify offerings beyond dispensing, providing services like health screening, whole-of-life vaccinations, wound care, and chronic disease clinics.
• Minor ailments expertise: Double-down on being a trusted source of advice and solutions for common health concerns.
• Trained specialist staff: Invest in staff development and expertise to deliver high-quality services.
• Dedicated space: Designate appropriate spaces for consultations and service delivery. Enhance the customer experience with a welcoming and comfortable waiting area.
• Flexible booking options: Offer both walk-in and online booking options for customer convenience.
• Digital communication: Utilise online tools like text reminders, live chat, tele-health consultations and social media to engage customers.
“Community pharmacies’ future will increasingly revolve around easy, professional in-store services – as a point-of-difference to attract more loyal customers.”
Conclusion:
The significant challenges over recent years have led to reduced job satisfaction, reduced business value and increased stress throughout NZ pharmacy. It is important to take a longer term view of this disruptive period, and to plan for a future that is more positive and rewarding.
I am working with community pharmacies to help them to embrace change, adapt to new realities, and redefine their role in their local healthcare ecosystem.
By strategically investing in expertise, services, and professional image, pharmacies can not only survive but thrive as vital pillars of their community’s health and well-being.
