Chemist + Druggist is part of Pharma Intelligence UK Limited

This is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.


This copy is for your personal, non-commercial use. Please do not redistribute without permission.

Printed By

UsernamePublicRestriction

Independents concerned by loss-leading services

Business While nine in 10 pharmacists polled by C+D believed loss-leading services gave an unfair advantage to multiples, Asda superintendent pharmacist John Evans (pictured) argued service innovation was key to pharmacy's future.

Nine in 10 pharmacists who responded to a C+D reader poll believe the loss-leading services offered at multiples pose a threat to independents.

The survey of 120 readers revealed that only 10 per cent felt loss leaders had a positive effect on the industry, while 90 per cent said that they attracted customers in a way that independents could not afford to do.

But while the Independent Pharmacy Federation (IPF) hit out at the strategy for failing to provide a "sustainable business model", multiples defended the services for spearheading innovation.

"This isn't about big and small businesses – it's about pharmacists trying to be innovative" John Evans, Asda

More on pharmacy services

Asda Ventolin Evohaler scheme splits C+D readers

Analysis: Services for a song

PCTs axe services amid quality concerns

Asda superintendent pharmacist John Evans said independent pharmacies "shouldn't see people trying to be innovative and different as a threat".

Although Asda's initiative to supply Ventolin Evohalers at half the prescription charge sparked debate among C+D readers last month, he stressed that this was not a loss-leading service.

"This is something that was priced at what we thought was a reasonable margin for the service being offered," he told C+D.

Mr Evans added that the strategy should not be seen as a battle between multiples and independents.

"This isn't about big and small businesses – it's about pharmacists trying to be innovative," he argued. "A lot of independents out there are far more innovative than us and there are many who do things better than multiples. We can't just keep on doing what we've always done in pharmacy."

The comments were backed by CCA chief executive Rob Darracott, who said the ability to provide services would determine the success of pharmacy businesses.

"Pharmacies – independent or multiple – that deliver effective MURs, have engaged with the new medicines service or deliver on the public health and wellbeing services commissioned locally, will be the ones attracting customers in the future," he said.

"If I was looking for a real threat to the marketplace right now, it would be whether pharmacy is in the right place to demonstrate the contribution it makes towards improving patient outcomes," Mr Darracott said.

But IPF chief executive Claire Ward said she was "not at all surprised" that loss-leading strategies had stirred up such strong feeling among C+D readers. "The reality is that for independents, loss leading is not a sustainable business model," she said.

"The way forward is not to be seen as a bargain basement of medicines and ancillary items, but as a high-quality healthcare professional who delivers services and quality dispensing advice without the need for an appointment."


Are loss-leading services good commercial sense or do they devalue pharmacy? Read the full debate on loss leaders in C+D's analysis

Comment below or email us at [email protected] You can also find C+D on Twitter, LinkedIn and Facebook

Topics

         
Pharmacist Manager
Barnsley
£30 per hour

Apply Now
Latest News & Analysis
See All
UsernamePublicRestriction

Register

CD015577

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Thank you for submitting your question. We will respond to you within 2 business days. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel