Increasing levels of competition are making it a challenging time for Australian pharmacies, and it is getting harder.
Pharmacies Face Numerous Challenges
Most pharmacies are anticipating an increased competitive threat and this is coming from multiple angles – supermarkets, other pharmacies and online channels.
Suppliers Role in Helping Pharmacies
Suppliers can play a key role in alleviating some of the burden through supportive deal structures, increased product training and knowledge transfer as well as providing recognition of the challenges being faced and where possible offering solutions.
Independent pharmacies in particular are being hit hard and offering competitive prices and good deals is as important as ever to allow these pharmacies to take on their competition.
Predicted Areas of Category Growth
Whilst growth in some categories is expected in the next 12 months, it is evident that pharmacists will struggle to push and compete in categories that can be readily bought in grocery such as infant formula and family planning products. Not every category will be hit - Vitamins, minerals and supplements are expected to see a strong sales growth in the pharmacy environment over the next 12 months.
This research was conducted by ACA Research. A survey was carried in July 2013 with 202 pharmacy retail/OTC managers from across Australia to understand the current market environment and the issues impacting OTC sales in pharmacy in 2013.
ACA Research regularly speaks to Australian Pharmacists and OTC Managers and can help you to ‘get to know’ these audiences and identify how best to support them going forward.
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