By understanding the independent pharmacy business, we can work to make the most of our distinct advantages to meet consumer needs
McKinsey & Company conducted a consumer survey of more than 1,000 people and leads us to better understanding the independent pharmacy business in the U.S. They published their findings in this article, laying out how the retail pharmacy landscape has changed over the years, how consumer preferences have evolved, and how different types of retail pharmacies may respond as a result.
The U.S. retail pharmacy landscape faces saturated retail locations, ongoing labor shortages, inflationary pressure and a leveling-off of generic drug penetration. To effectively compete in this environment, all independent and community pharmacies can strive to better understand and adapt to changing consumer preferences.
This study gives us a snapshot of the market, where we are trailing the big chains and where we can make substantial gains.
How the retail pharmacy landscape has evolved
Over the past two decades, the retail pharmacy landscape has evolved substantially. This survey breaks down the retail pharmacy sector into four categories: retail chains, regional pharmacies such as mass retail and grocers, independent pharmacies, and mail-order and online pharmacies.
According to McKinsey & Company, the number of independent pharmacies has decreased by nearly 50 percent since 1980, leveling off at about 20,000 locations since 2000. While filling about 48,000 prescriptions a year, independent and community pharmacies remain viable through effective collaboration with other independents and wholesalers. This cooperation has taken the form of support from wholesalers like API Warehouse, pharmacy service administrative organizations, and group-purchasing organizations like AAP.
Understanding the independent pharmacy business in the U.S. is key for retail pharmacies. We can ensure we understand and meet consumers’ needs so we are a preferred destination. Click here to read the full report and gain more insight to understanding and improving your pharmacy’s business.