Independents offered chance to rebrand as Lloydspharmacy
Business Independent pharmacies will have the chance to rebrand themselves as a Lloydspharmacy branch from September, when the multiple’s parent company Celesio UK launches its virtual pharmacy network.
Independent pharmacies will have the chance to rebrand themselves as a Lloydspharmacy branch from September, when the multiple's parent company Celesio UK launches its virtual pharmacy network.
Celesio UK managing director Cormac Tobin revealed in an exclusive interview with C+D on Tuesday (July 23) that the company was offering the scheme to AAH customers in the UK from September. It plans to open it to other independents at a later date, as part of the creation of a European Pharmacy Network (EPN).
Independent contractors will have the option of entering the EPN franchise at three levels, becoming fully branded, co-branded or remaining separate from the Lloydspharmacy brand, he said.
Independents will have the option as part of the network to become fully branded, co-branded or to remain separate from the Lloydspharmacy brand |
More on Celesio Celesio launches independent network to rival Boots' Alphega |
The EPN model, which involves a shop refit and enhanced training to pharmacy staff on skincare and pain management, is used in selected Lloydspharmacy stores already. These pharmacies had seen skincare sales almost double, Mr Tobin said. |
Mr Tobin stressed that Celesio's EPN model was distinct from Alliance Healthcare's Alphega virtual network – which has more than 4,700 independent pharmacy members across Europe – because it focused on skin health and pain management.
"The lack of clarity in categories in pharmacies is distressing and it's not their fault. Big companies have these resources and we can use them in this area," he said.
If no AAH customers in an area wanted to join the franchise then Celesio would consider offering it to another independent, Mr Tobin added. "AAH customers have shown huge loyalty to us over the years. But if somebody doesn't want [the franchise], you've got to be fair and offer it to somebody else."
Mr Tobin could not provide details of how much contractors would have to pay or how many he expected to join, but said those who owned a number of pharmacies could expect to receive a discount. He would not reveal how much had been invested in the scheme, but said that Celesio had put "substantial money" behind it and planned to spend "considerable marketing funds" to engage with independent pharmacists.
The offer for independents is part of a wider plan for Celesio pharmacies in the UK, with more than 70 Lloydspharmacy stores scheduled to be converted to the EPN model by the end of the year. Celesio invested more than £1 million in training Lloydspharamcy teams for EPN this year, the company said. Despite a first-quarter year-on-year fall in earnings for Celesio's retail pharmacy division, Mr Tobin said the EPN model was a "new path to earnings" and he expected the company to take on more staff in the future. |
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Levels of franchiseOptimum level This will cover every aspect of the EPN concept, including full Lloydspharmacy branding. Pro level The pharmacy will be co-branded with Lloydspharmacy but the contractor will maintain control of certain aspects of the business. Essential level This includes all the services not linked to the Lloydspharmacy brand, including category management, buying, development of standard operating procedures and business plans. |
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