The core range solution: Less is more
The 80/20 Rule: Your core range of top-selling OTC products delivers around 80% of retail sales. Stop carrying everything and start carrying what works.
Benefits of core ranging: • Simplifies shop layout and customer decisions • Frees working capital from dead stock • Increases facings of top sellers = more sales • Makes inventory management easier for staff
The core range decision checklist: Your gatekeeper
Every new product must earn its place by answering these questions: • Is it doing the same job as existing products? • Is it a current or emerging best-seller? • Does it offer better margin, efficacy, or promotional opportunity? • Is it part of core healthcare business? • Are we missing sales without it?
If it fails these tests, don’t order it. Protect your capital for better opportunities.
Range rationalisation: Clear the dead weight
Immediate actions: • Cut products selling fewer than six units per year • Clear anything unsold in six months (discount heavily if needed) • Focus shelf space on products customers want • Move slow-movers online or remove them entirely
The result: Higher stock turn, better GMROI, freed capital to invest in services, people, and premises.
Ordering discipline: The foundation
Adopt a regular ordering schedule: • Order to 60 days cover using data-driven suggested orders • Never run out of your top 100 products • Stick to a monthly ordering schedule with a small number of key suppliers • Check out-of-stocks weekly and fix immediately
Fix your data first Accurate stock on hand, clean product files, consistent category coding. Without good data, you’re flying blind.
Your position: Local health professional
• Expert clinical advice and services • Curated, evidence-based range • Customer experience and belonging • Consulting rooms and professional services • Personal relationships corporates cannot match
The future: Fewer aisles, more clinics
The pharmacy of the future has tighter retail ranges, fewer gift and beauty products, more consulting rooms, and a growing portfolio of clinical services. Your retail range must support, not distract from, your position as the local health professional.
Getting started: Your 90-day action plan
Week 1–2: Clean your data: fix stock on hand, product files, category codes
Week 3–4: Run dead stock reports and start clearance (30% off initially, 50% if needed)
Week 5–8: Implement Core Range Decision Checklist – stop adding marginal products
Week 9–12: Establish regular ordering schedule and measure baseline KPIs
Month 4+: Monthly KPI reviews, continuous range optimisation.
Cut the clutter, focus on core healthcare, invest the savings in clinical services, and build the customer experience discounters cannot copy. That’s how you change the game.
