The origins of the high street trace back to an era of thriving family-run enterprises. Among them were pharmacists who diligently catered to the needs of their local communities, dispensing essential medicines and a range of services. In an age where most, if not all, shopping was conducted on the high street, having easy access to guidance and medication within one’s vicinity held paramount importance.
However, the landscape shifted as a handful of more prominent players emerged in the pharmacy domain. This transformation led to a decline in the number of independently owned family shops, causing them to become increasingly rare.
The trend was further influenced by the growing prevalence of pharmacies housed within supermarkets, which had an impact on the viability of independent operators and significantly reduced their market presence.
Nevertheless, the tides of pharmacy utilization are once again in flux, with the pendulum swinging back towards family-operated establishments. The recent decision by LloydsPharmacy to divest its UK retail portfolio, along with their planned exit from over 200 Sainsbury’s branches, underscores this change.
Concurrently, consumer preferences are veering towards independently managed pharmacies. These shifts reflect a broader societal inclination to distance oneself from monolithic corporations in favor of fostering local enterprises.
In light of this evolving consumer preference, independent pharmacies have a distinct value proposition that resonates with patrons and keeps them coming back
A closer community connection
A local pharmacy transcends its role as a mere establishment within the community. Beyond dispensing prescriptions and essential medications, it has the potential to deliver a heightened level of personalised care, rooted in a deep connection with its local patrons. These relationships develop and solidify over time, especially when the business has been a part of the community for generations, encompassing both proprietors and customers. Such enduring bonds can significantly elevate the customer experience, setting it apart.
The ability to recognise customers on a personal level, thus enabling the provision of bespoke services, is just one rationale behind the growing preference for shopping with small-scale retailers. Payment card provider American Express, attuned to the allure of independent retailers, introduced their Shop Small initiative. This program serves to further encourage patronage of these local businesses.
In the realm of pharmacy, where the focus is on health—often perceived as an onerous or unpleasant responsibility—these modest enhancements to the customer experience can wield substantial influence in the decision to permanently transition to an independent operator.
Greater autonomy over business decisions
Embracing the role of an independent retailer empowers you to sculpt the contours of your business across a spectrum of aspects. Yearning to revise your business hours or curate the precise inventory levels for each item? The realm of decision-making lies squarely in your hands, affording you an unparalleled autonomy.
While affiliating with a larger chain as a franchisee offers distinct advantages and safety nets, it does come at the cost of relinquishing the unfettered creative control over your retail space. Unlike the uniformity that conglomerates provide, where products, layout, and branding are standardized across numerous stores, the individuality and diversity in the product offerings of independent pharmacies add a unique allure to the customer experience.
You’re bestowed with greater latitude to respond to current and burgeoning trends in demand, tailoring both products and services to suit your discerning clientele. You might even curate feedback firsthand from your patrons, leveraging their insights to swiftly introduce improvements that resonate locally.
Furthermore, a pressing concern pervading the sector is the nationwide scarcity of pharmacists. This scarcity has driven locum rates to notable highs in recent years, with hourly remuneration averaging around £35-40 but occasionally surging to as much as £65. Escalating staffing costs can exert strain on profit margins and, in certain scenarios, impede the establishment of new stores.
For larger chains like LloydsPharmacy, these spikes in expenditure—sustained across a multitude of locations—potentially factor into the decision to divest numerous sites. Independent proprietors are inherently better positioned to navigate this challenge, given that many of them are trained pharmacists themselves, thus mitigating dependence on locum workers.
Choice of services
Pharmacies have evolved into hubs offering an extensive spectrum of services, ranging from screenings and vaccinations to cosmetics and thoughtful gifts, even extending to toys and sustenance. Beyond just medications and expert health advice, it is these supplementary offerings that set the stage for a distinctive customer experience. As an independent operator, the onus rests on you to curate an array of offerings that will consistently entice patrons back to your establishment.
During the inception of pharmacies within supermarkets, the allure lay in the efficiency of amalgamating shopping needs with prescription pick-ups under one expansive roof. Nevertheless, independent pharmacies have now seized the opportunity to stand out by diversifying their suite of services, cultivating a multifaceted appeal for customers. This strategic approach is pivotal in cementing the popularity and uniqueness of independent pharmacies, an imperative considering the funding constraints besieging the community pharmacy sector.
Steve Wilson, the Director of Debt Finance, keenly observes that the metamorphosing landscape of the retail pharmacy sphere necessitates swift adaptability on the part of business proprietors to ensure survival. The retail realm was already teetering pre-pandemic due to the surge in online shopping preferences and the escalating overheads of physical retail units. Fortunately for independent pharmacies, the transition to online prescription dispensing has been gradual, and the physical pharmacy remains a primary conduit for accessing medication.
The enduring connection that customers cherish with their local high street endows independent pharmacies with prospects for success, provided they pivot to cater to current consumer needs. Thus, elevating their services beyond the traditional prescription dispensing model emerges as the linchpin for both survival and differentiation in today’s dynamic pharmacy landscape.
Frequently asked questions
Why are independent pharmacies important?
Independent pharmacies are important as they play a significant role in keeping their communities healthy by providing more personalized care and counseling to patients and offering the flexibility to meet the unique challenges of various patient populations they serve.
What are the advantages of independent pharmacies over chain pharmacies?
The advantages of independent pharmacies over chain pharmacies including: More personalized service, Shorter wait times to get scripts filled and Easier access to pharmacists for questions and advice.
Conclusion
In conclusion, the resurgence of momentum for independent pharmacies is propelled by a confluence of factors that align with the evolving consumer landscape. The personal touch and bespoke services offered by these local establishments, rooted in longstanding community relationships, have rekindled customer affinity for the distinctive experiences they provide.
The shift towards favouring locally-run businesses over faceless corporations, coupled with the ability of independent pharmacies to swiftly adapt to changing trends and customer demands, further cements their renewed prominence. As LloydsPharmacy’s decision to divest its retail portfolio and the rise of customer preference for independent options demonstrate, the pendulum is swinging back towards these intimate and responsive pharmacy operations, marking a compelling resurgence that bridges tradition with modern preferences.
Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.