BRACKNELL, U.K: The number of independent pharmacies on the high street, in villages and in cities around the UK is growing and, together with increased footfall in all pharmacies driven by increased prescriptions from GPs, has led to a boost in over-the-counter (OTC) sales of medicines, according to market measurement and consultancy firm SymphonyIRI Group.
Contrary to the well-documented decline in independent trading in the mainstream grocery market over the past 30 years, independent pharmacies still account for a healthy 40% of pharmacy outlets in the UK and their numbers have stopped declining and are now in growth. This growth occurs in spite of the long-term trend of pharmacies opening in major multiple supermarkets such as Tesco, Sainsbury and Asda, and the growth of bigger pharmacy chains, such as Boots and the Co-operative Pharmacy.
In the year to November 2011, the number of independent pharmacies in England had grown by 2% compared to a decline of 27% over the seven years to November 2008, according to government statistics1.
Martin Wood, Business Unit Director – Health and Beauty, SymphonyIRI Group, said “The increase in the number of independent pharmacies is mainly due to the way that the NHS works, prompting more people to visit the pharmacy as it develops its consultancy role within the community and collecting medicines on prescription, which are generally tied to local GP surgeries. There has also been some growth in the provision of niche outlets with specialist products such as premium skincare and vitamins.
“Also, whilst the high street is under a lot of pressure during the economic downturn, and the outlook is still at best uncertain, it’s also clear that independent stores in premium locations in major cities and also in more affluent rural communities have been able to operate profitably and successfully.” Wood continued. “Even in harder-hit communities, the local pharmacy is still a vital retail outlet for people to visit when they are not well. Furthermore, a trip to the superstore can be less attractive with the rising cost of fuel and the need to keep expenditure to bare essentials.”
Independent pharmacies account for approximately 12% of all OTC medicines and vitamins sold in the UK2. This is up by 1.9% compared to a total market increase of OTC sales of 1.6%. The growth has been driven by sales of seasonal products such as decongestants and specialist skin products. Over 20% of total OTC sales within independent pharmacies is represented by products which are only available through the pharmacy and purchases require advice or assistance from the pharmacy itself, such as for dry skin treatments and sleeping aids.
In the period of 52 weeks to September 2012, the number of prescriptions dispensed by independent pharmacies increased by 7.9% compared to a growth of 5.3% for the total market over the same period3.
Martin Wood added, “The community pharmacy, which relies on dispensing NHS prescriptions for the lion’s share of its turnover, is seeing increased footfall. More and more people are taking advantage of the increasingly diversified role of the pharmacist as a consultant for their healthcare needs. Visiting your local community pharmacy to receive a ‘Medicines Use Review’, a relatively new government initiative to provide personal consultations on types and levels of medicines being taken, or advice on quitting smoking, obesity and other chronic conditions, is becoming a considered option for most people.
“Whilst the NHS encourages GPs to recommend OTC medicines to save money, price dynamics are different in the community pharmacy. Advice, which may include guidance on price points and the benefits of generic alternatives are more important. A different approach to pricing and product ranging is required, as is communication through good channels including the trade press and an in-house of third-party sales force,” concluded Wood.
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