NZ Pharmacies have continued to trade as essential services during the lockdown, and have struggled to adapt to the continuously evolving trading conditions.
While they have been fortunate to have had the opportunity for sales of essential medicines and PPE supplies, retail sales have suffered since 26th March due to the need for social distancing and limited entry into stores.
Sales during lockdown Levels 4 and 3 have dropped by -20%. The only day of positive sales Vs LY was on the Thursday before the Easter long weekend. Click below to download the detailed daily sales graphs.
The impact on pharmacies has varied depending on their location, size and mix of retail products, with the large mall and city pharmacies suffering more than -50% declines in retail sales, while some smaller suburban pharmacies had increased sales and traffic.
Some good news under Level 2
Yesterday's sales for the sector under the first day of Level 2 bounced back to be +3% above the same day last year, but this bounce still included significant pent-up sales of cosmetics, skincare and PPE products and is unlikely to continue.
Our forecast for pharmacy retailing suggests an ongoing impact of -10% Vs LY through June due to decreased demand for Cold & Flu remedies and reduced consumer confidence.
Contact me for further details of the forecast sales for different pharmacy types and product categories and some tactics that pharmacy owners can adopt to help their business adapt to the "new normal".