Transcript The Changing Face of Retail Pharmacy

THE CHANGING FACE OF
RETAIL PHARMACY
Robert Miller
THE CHANGING
PHARMACY
FACE OF
RETAIL
Who we are

Robert Miller – Director of HPG Business Sales

Lesley Sibley – Pharmacy Sales Manager
Agents & Valuers of Pharmacy Businesses and Dental
Practices
 Based in Hertfordshire
 We operate throughout England & Wales
 Part of Frank Taylor & Associates who have been
established since 1988
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SWOT ANALYSIS
 STRENGTHS
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11,400 community pharmacies
Each day about 1.6 million people visit a
pharmacy in England
Approximately 2.7 million items dispensed
daily
Strong relationships with customers
Trust
Advice
SWOT ANALYSIS
 WEAKNESSES
Dependence on NHS dispensing fees
 Supporting traders closing down
 Customers being pointed elsewhere by doctors and
notices in surgery waiting rooms
 Services income under threat as PCT’s put contracts
out to tender
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SWOT ANALYSIS
 OPPORTUNITIES
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To increase revenue from services
Raise revenue from treatment rooms using
Complementary therapists
Promotion of Healthy Lifestyles
Well stocked medicine counter
Invest in modern shop fittings, shop
front & signage - finance is available
from FT&A Finance
T - 0845 612 3424
SWOT ANALYSIS
 THREATS
Competition from distance selling pharmacies
 Tariff cuts
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SURPLUS OF PHARMACISTS
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There are now more qualified pharmacists than there
are positions available. This has lead to a reduction in
pharmacists wages. This situation will continue for
another 5 years even if university places are reduced
this year
Consider employing a 2nd pharmacist for some hours
during the week to increase MUR’s
and other services.
T - 020 8927 0971
Locum pharmacists with accreditation
and good references can be recruited from Locumlink
COMPETITION

Distance selling pharmacies – these deny patients
the opportunity to take advice when receiving their
medicines. Not needed in England where 96% of
the population can reach a pharmacy within 20
minutes either by walking or public transport.
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Dispensing doctors – These practices have
unqualified people dispensing drugs and also work
on a more favourable financial basis. Pharmacists
should call for a level playing field.
GOODWILL

The goodwill of retail pharmacies has been
very buoyant during the past year with prices
reaching 130% of turnover or more in some
cases.
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If you would like to know the value of your
goodwill call me for a free desktop valuation.
GOODWILL examples
Pharmacy in home counties with 50:50 NHS to
OTC split and high property costs. Turnover
£950K – Sale price achieved £925K approx. 97%
of turnover
 100 hrs. pharmacy in London. Turnover £1.3
million – Sale price achieved £1.175 million
approx. 90% of turnover
 Pharmacy on London/Middx. Borders working
9am to 9pm seven days per week. Turnover £1.2
million – Sale price achieved £1.3 million approx.
108% of turnover
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Register today
Any pharmacy owner who leaves us their details
today and signs a Letter of Instruction before the
end of January will receive a 20% reduction in
our fees.
 The usual fee charged is 2.5% of sale price and
this offer will reduce this to 2%
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CONCLUSION
 If
you would like to have a confidential
chat about your pharmacy, please contact
us.
 Directly after this seminar
 By telephone on 01707 291824
 By email [email protected]
@HPGSales