By David Pinto
The editors of Chain Drug Review have spent much time of late — perhaps too much time — denigrating the chain drug store industry, finding fault with an icon of American retailing, and harping, perhaps excessively, on the industry’s shortcomings, weaknesses and absence of perspicacity.
Perhaps, in that case, it is time to flip the coin and spin the dial in the opposite direction by detailing some of the many strengths the chain drug store still possesses, sometimes in abundance. Armed with that assignment, then, this column will attempt to detail four of the many major assets that accompany the chain drug store into the second quarter of the 21st century in the United States.
Let’s start by recalling anew what has long set chain drug retailing apart from other mass market operators: the pharmacist. For more than a half-century, chain drug retailing has staked its claim to retailing immortality by pointing to the one individual who has set it apart. In the person of the man or woman behind the pharmacy counter, this industry has successfully positioned itself as the professional among amateurs, the only store a customer can visit to acquire advice, guidance and, yes, recommendations to revive, restore and maintain good health. And indeed, Rx and O-T-C products, though sold by other retailers, have lacked that seal of approval that only a pharmacy can provide, merely by suggesting a product.
Unfortunately for chain drug retailing, other retail trade classes have finally grasped the importance of the Rx-man. But chain drug retailing was there first — and still wears that mantle, if a big less securely.
If the physical presence of the pharmacy has long set chain drug retailing apart, that store’s basic merchandise mix has done much to keep it there. While other retailers sell health and beauty aids, drug stores have long laid legitimate claim to those products. And they still do. Other retailers offer H&BAs almost as an adjunct to groceries and general merchandise. Chain drug stores continue to situate heath and beauty care at the core of their merchandise offerings. The hope here is that, despite declining prescription drug sales, they will continue to rely on H&BAs to attract customers — and build sales.
We at Chain Drug Review believe that the third-most-critical strength chain drug retailing possesses is the caliber, if not always the commitment, of its leadership. True, the makeup of that leadership has changed in recent years, to the point where it is sometimes unevenly aligned with the industry it leads. Indeed, perhaps a refresher course on chain drug management is called for at this time. Perhaps as well, a basic course on chain drug retailing would help the industry’s leadership get back on track. However, if the content of the leadership has changed somewhat, the industry it leads remains largely the same. Only the gears need recalibrating.
As for number four, the word “merchandising” comes easily to mind. Once upon a time, chain drug stores were often the first to market a new product, a new category, a new idea, a new way to attract the customer. Alas, other mass market retailers have finally caught up. As a result, chain drug stores are often second, third or last to market with a new concept, a new idea, a new approach or a new product.
Here again, perhaps a refresher course would be appropriate, or perhaps the installation of a new generation of marketing and merchandising executives, or perhaps a readjusted or re-evaluated focus on a subject that was once an integral part of the chain drug arsenal.
That’s it for now. But stay tuned … •
