WAUKESHA, Wis. — A significant growth opportunity for independent pharmacy may be in its sales of over-the-counter products, according to a recent white paper published by the Hamacher Resource Group. Patient access to pharmacists and their product recommendations contribute to improved OTC performance within independent pharmacy, the report noted.
Using first aid as an example, first aid bandages remained a strong category in chain pharmacy, however first aid treatments — antibiotics, skin treatments, wound cleansers and antiseptics — were stronger across independents. "The story that unfolds indicates that consumers tend to favor independent community pharmacies for medicinal or clinical-type purchases, but chain pharmacies for healthcare items that might be considered more mass market," the paper read.
According to the report, sales of treatment-focused OTC products represented a larger percentage of category sales within independent pharmacy, and increases in market basket can be attributed to companion product sales and category adjacencies.
“Growth Drivers” is a follow-up to HRG’s 2011 white paper “Supply Chain Collaboration: Maximizing Health, Beauty and Wellness Product Sales in Independent Pharmacy,” which addressed the relationships among suppliers, distributors and independent pharmacy. “Growth Drivers” is a more in-depth dissection of the reasons that certain categories outperformed in independent pharmacy over chain drug.
“These two studies have highlighted the importance of independent pharmacies and the growth potential of OTC remedies and certain categories at these retailers," stated HRG VP Dave Wendland. "Combining disciplined merchandising tactics and strategic store layout with ongoing pharmacist education will continue to drive growth in this channel."
Hamacher Resource Group published the white paper, titled “Growth Drivers: The Factors Behind Independent Pharmacy OTC Sales,” with the support of two trade associations — the Healthcare Distribution Management Association and the Consumer Healthcare Products Association.
Wendland presented the white paper on Monday at HDMA’s Business & Leadership Conference during the Health, Beauty and Wellness Products Forum in San Antonio, Texas.
The “Growth Drivers” white paper is available at no charge at Hamacher.com/GrowthDrivers.
Wendland also will present the findings from the “Supply Chain” and “Growth Drivers” white papers during an upcoming webinar sponsored by HDMA and CHPA.