who prefer to expand their drug store’s profits instead of selling their business.
As a pharmacy owner, have you seen your net profits decline over the past few years?
Is the concept of running a neighborhood pharmacy in the traditional manner still going to work?
Chain Drug Stores
A number of years ago, the major drug store chains started building 20,000 square foot stores. They didn’t make the pharmacy departments bigger, but they increased their frontend area. Their business model of larger product lines is to drive traffic to their store and increase sales.
Another strategy implemented by the drug store chains was buying out their local competition. The chains have acquired many pharmacies in their target zone. This assisted independent owners who were ready for an exit strategy. However, recently buying parameters have tightened, and purchase prices have come down. Small stores may no longer be a target for acquisition because the chain will pick-up the customers when the mom and pop drug store simply, goes out of business.
Independent Pharmacy Owners
Pharmacy Strategies Looking for new pharmacy strategies to increase profits? When you consider there are pharmacies with $3M+ in sales, who are falling into the same hole of declining profits as smaller pharmacies then you know dwindling profits is not a “volume”...