Trends and predictions for retail pharmacies in 2023
Updated: Jan 2
It has been another very challenging year for most pharmacies with pressure on dispensary teams due to the complexity of receiving scripts electronically coupled with a shortage of qualified staff.
The ongoing spread of discount and supermarket pharmacies continued. This has created a two-tier pharmacy market with opportunities for community pharmacies providing full-service to differentiate themselves from the low/no service big-box stores.
The growth plans of corporate pharmacy groups is now threatened by staff shortages plus the ICPG High Court challenge to the issuing of pharmacy licenses and the meaning of “effective control” in the Medicine Act.
Here’s the big trends I’ve seen in retail pharmacy in 2022 along with my predictions for the year ahead:
1. Staff shortages led to increased stress and burnout, reduced trading hours and some closures.
2. Pharmacies made significant one-off profits from COVID vaccinations, RAT tests and face mask sales.
3. Vaccinations pushed some customers from GPs into pharmacy.
4. Cough & Cold sales boomed in winter and continued to remain high all year.
5. Cosmetics and beauty sales continue to decline.
6. Sales of the health supplement commodity brands continued to move to the discounters.
7. NZ’s Inflation rate (+7%) was higher than pharmacy retail price increases (+3%).
8. Services in pharmacy were a growth area for those that had enough trained staff to provide them.
9. The most critical factor for dispensing is workstations that are fit-for-purpose at peak times.
10. The most critical factor for pharmacy success is staff retention.
Here are links to my most popular articles from the last 12 months.
Get in touch with any questions, and I look forward to visiting your pharmacy in 2023.
Happy New Year
Ph: 0274 359848