The future

of pharmacy retailing

www.rpmretail.com

John Saywell – RPM Retail

sustainable

^

“The glass is half full”

- optimist

“The glass is half empty”

- pessimist

“Holy shit – there’s a

dragon in the glass!”

- awesomist

What’s your perspective?

Expert

Cheapest

Most

Convenient

Biggest

What will you

be famous for?

18001810

18201830

18401850

18601870

18801890

19001910

19201930

19401950

19601970

19801990

20002010

20202030

2040

Industrial

Revolution

Steam,

Steel &

Railways

Technical

Revolution

Electricity

& Mass

Production

Transport

Revolution

Oil,

Air Travel &

Efficiency

Communications

Revolution

Computers,

the Internet &

Information

Global

economic cycles

Strength

Weakness

Opportunity

Threat

SWOT Analysis

Internal

factors

External

factors

The demise of small,

independent retailers

The rise of regional,

super retailers

Coming to a supermarket near you?

E-commerce &

the long tail

The first have eaten

the slow

Top 10

NZ e-commerce sites

Ultra-specialty

retail

They keep stealing

your stuff

They keep stealing

your stuff

Disintermediation

Is this the end?

Local, social,

sustainable

The retailing

time clock

Local

Super

Discount Mega

Route

Special

Best quality

products and

expert advice

Cheapest

products

self-service

The pharmacy

time clock

Key Points

1. The rise of the super / mega / discounters is over.

2. The internet retailers win on biggest range and cheapest price.

3. Local, social and sustainable are the future trends to watch.

The future of retailing

Strength

Cheapest

Opportunity

Biggest

My advice

Increase

instore

services

Be local &

social

Focus on a

curated

range

Only

discount

the KVIs

Make the most

of being local

Get found online

Be social

Pharmacy’s long tail

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Retail Products Rx : OTC

1. Dispensing only 0 100 : 0

2. Health Centre 0 - 4000 70 : 30

3. Community 4000 - 8000 50 : 50

4. Health & Beauty 8000 + 30 : 70

Know your type

Curate your range

Efficiency Vs Engagement

Top 6

Known Value Items

KVI Average

Price

Inner Health Plus 30s $35-99

Elevit 100s $99-99

Nurofen 96s $22-50

Scholl Pedi Foot File $49-99

Zovirax 2g Tube $24-99

Panadol 100s $14-99

Make personal, instore service

your point-of-difference

Key Points

1. Be active, locally.

2. Curate your range.

3. Don’t join the race to the bottom.

4. Invest in instore service.

john.saywell@rpmretail.com

Mobile payments

e-Health

www.rpmretail.com

www.rpmretail.com

2014 Pharmacy retail sales

Total Retail Sales +2%

Total Customers +0%

Measurement + Feedback

• What to measure?1. Store KPIs

2. Category sales and gross margin

3. Staff Average Sale - PPC and Average Price

Retail sales for the last 30

Days

RPM Scoreboard

Daily Insights

$26 sale

$20 sale

30% increase!!!

The RPM

Sales Training Programme

The RPM Programme

Classroom Training

Category Management

Seminars

Frontline Staff Conference

RPM Awards

Recognition Programme

RPM Software + Support + Training

Store Layout & Planograms

Instore Coaching

www.rpmretail.com

www.rpmretail.com