Benge - Updated September 26, In the United States, the words "pharmacy" and "drugstore" are used interchangeably, though the latter label often suggests a store that sells prescription medications and other products. What a business chooses to call itself often depends on what additional products, if any, the business sells besides pharmaceuticals. Products for Sale The term "pharmacy," when referring to a business, means a place where medications are dispensed and sold, or both.
A large portion of this business was conducted in locations owned by the three industry giants that dominate the industry: At the end ofthere were just over 23, independent community pharmacies operating domestically. Growth Overall, the retail pharmacy industry grew at an annual rate of 1.
Independent pharmacy growth has remained flat during this time period. At the beginning ofthe number of independent pharmacies rose slightly from 23, to 23, but this number was lower than the level of 24, locations.
However, independent pharmacies have benefited from high sales growth in the first aid, eye care, sun care, smoking deterrent, foot care and home health care categories. Growth in the incontinence and diabetes categories has also been higher than for the large drug store chains.
Profitability The current average net profit margin of 2. The number of independent pharmacies operating at a net loss continues to increase, from Duringapproximately 92 percent of sales were derived from the sale of prescription drugs, which generate lower gross margins than front-end items.
Independent pharmacies have reduced dispensing costs, but payroll expenses remain high, as the independents spend substantially more time consulting with doctors regarding prescription drug therapy than the larger retail pharmacy chains.
Competition The retail pharmacy industry is highly competitive. The number of alternative providers such as mail-order firms, grocery chains, mass merchants and dollar stores has grown.
Many of these competitors aggressively market to capture market share. Larger chains benefit from competitive advantages such as numerous locations, pricing power, strong brand recognition and sophisticated technology.
Independent pharmacies remain competitive by offering better customer service and specialized products. Smaller pharmacies also focus on niches such as services for high-risk patients and those with special needs to remain competitive. Market Trends Healthcare reform and the aging baby-boomer generation are expected to drive increasing demand for prescription drugs.
Between andhigh unemployment and lower disposable income levels combined to negatively affect industry sales. For independent pharmacies, government programs accounted for 49 percent of prescriptions during This may be a liability, as the government is expected to implement cost-cutting measures to offset the effects of the aging population.
Over-the-counter medications represent one of the more significant growth opportunities for independent pharmacies.In , U.S. pharmacy and drug store sales amounted to about billion U.S.
U.S. Pharmacies and Drug Stores Industry The retail drug industry is comprised of pharmacies or. In the United States, the words "pharmacy" and "drugstore" are used interchangeably, though the latter label often suggests a store that sells prescription medications and other products.
What a business chooses to call itself often depends on what additional products, if any, the business sells. Pharmacy Services & Retail Drugstore Industry Ebitda grew by % in 3 Q sequntially, while Revenue increased by %, this led to improvement in Pharmacy Services & Retail Drugstore Industry's Ebitda Margin to %, above Pharmacy Services & .
Pharmacies & Drug Stores - Comprehensive guide to industry information, research, and analysis including industry trends and statistics, market research .
Rethinking Strategy in Pharmacy and Drugstore Retailing By John S. Strong The industry is facing unprecedented changes in health care systems, the changing nature of pharmaceuticals, innovations in products and services, and rising competition from new entrants and new channels.
The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered (or self-administered) to patients to cure them, vaccinate them, or alleviate a symptom.