Dan Langerman, Langermania

T'was ever thus in pharmacy retail: there are different methods of presenting goods to consumers. As times change, so do those methods—and, of course, what products or category of products are offered.I believe it's instructive to look back before looking forward to plot out strategies.

Back in the day, many pharmacies had what was known as the “shotgun” look. My great-grandfathers' (then my grandfathers’) pharmacy on South Michigan Avenue in Chicago, which opened in 1903 and is shown here circa 1923, is just one example Prescriptions were dispensed on the back wall of a narrow room.The shelving along the walls was clear to the ceiling, with sliding ladders to retrieve goods up high. Display cases lined both sides, with products displayed enclosed in glass. Up front, you’d often find a soda fountain on one side, with small tables down the center aisle for consumers to enjoy fountain treats.

In this modern era, pharmacies' front ends are radically different in design. OTC products are now self-serve, displayed on shelving that is accessible—not behind glass. Also missing are the high, unreachable wall shelves. A few soda fountains are still rocking in some pharmacies, bringing in traffic: A real asset in these all-too-modern times (In most modern pharmacies, they’re gone).

The nostalgia factor can, however, still be tapped, albeit less dramatically, by stocking up on products familiar to older consumers from their youth. To fill gift needs, nostalgia can fuel the sale of old-fashioned candy in a big way. Although clinic pharmacies have their own issues in retail sales for obvious reasons (think space issues), I contend that with the deft placement of specialty products, they too can work some magic in raising retail sales.

Let’s think about the days of yore, and the products that were big sellers. We can't forget patent medicines, which made outrageous—and in some cases, criminal—claims of efficacy in combating assorted ills. They were loaded with alcohol or laxatives and counted on either the buzz or a good bowel movement to satisfy a patient’s need for some relief and neglecting to address the malady they claimed to abate. With time and research, we've discovered the herbal, vitamin, and natural remedy formulas that have been proven to successfully treat many common maladies. These are great avenues for positive health results, as well as generating positive and legitimate revenue. Other modern era fads also include diet products that make grand, over the top promises of life changing weight loss. Commonly, the help they provide is found in the instructions on their labels: “Take these pills” (I call them placebos) “along with a proper diet and exercise.”

In fashion trends, low-end or costume jewelry will sell—in particular, styles that are fun, fanciful, and unique. These products will have a run of sales for a limited time, so don’t become married to them— simply become friends, while making new friends (new styles) periodically. For kids, display items like fidget spinners and Beanie Babies—another trend dipping its toe into nostalgia. Although they have come and gone, cute plush still sells, and small puzzles and toys continue to fill gift needs.

Looking ahead, to try to jump on fads or trends while they are on the way up can be filled with trepidation. Use caution, and walk before you run. Sometimes when a fad takes hold, it might already be too late by the time it hits the press! It’s better to count on trusted suppliers for “the buzz.” Also helpful is hearing chatter from customers about what’s going on in schools or in your local neighborhood. Fads tend to start regionally and travel unpredictably at various speeds. If you have a source for these types of products, jump in modestly and be prepared to jump ship. Closing out products at a discount isn’t a loss…. it’s a WIN! 

Of course, every store has different customers, so the actual movement of different offerings speaks volumes… if you’re listening. There are many established winning categories to tap into: fun edibles, well-displayed, are great. Specialty hand creams, not found in chains, with a tester available, is a tried and true winning formula. They are strong sellers in winter and summer, as are unique lip balms. Lots of us crack our lips while cracking a smile! These classic categories re-worked can be a way to spark your own trends.

Maybe the hottest fad ever, with legs longer than a giraffe, is… (drum roll)… 

Every—literally every—customer walking into any store has a cell phone and they all need charging. People don’t like their cell phones; they love them. All kinds of accoutrements, from ear pods, ways to hold phones, Bluetooth speakers, and more, all retail great. But all charging cords are king!Fuel this fire! These are retail gold.

In closing, I’ll turn to 2 nostalgic admonitions: One, Nothing ventured, nothing gained, and two, You’ll never go broke underestimating the public’s taste.

Articles

Tapping into nostalgia is one way to guide front-end stock choices. 

Now #Trending: Picking and Choosing Items to Stock the Front-End

Independent and small chain pharmacy owners are often far too busy to focus on creating success through OTC retail sales—understandably so. They face the trifecta of dispensing lifesaving medications, honoring their Hippocratic Oath, and focusing on getting remuneration from insurance companies. Finally, they must deal with the overall management responsibilities inherent in owning a retail business with employees, and all that comes with it.

How and why should they pay attention to that vast wasteland of their front end? Let’s start with some essential truths: Americans—and plenty of humans worldwide—are true red, white, and blue consumers. I contend that as soon as your customers hand off their prescriptions, they often scratch their bottom and look for something to eat, drink, or read. If they’re elderly or ailing, they usually look for somewhere to get off their feet.

I focus on these obvious human behaviors because recognizing them is the foundation of successful retailing. Where your patients sit or congregate are the prime locations to merchandise products that are purchased impulsively. All pharmacies are provided with, and utilize, their drug wholesalers’ OTC products planogram. There are departments of analgesics, cough and cold remedies, foot care, and so on. If someone needs these products, they will seek them out or ask for help finding them. Most of these departments are critical and are required to take care of patients’ needs. But a pitfall of these departments is that they’re based on national averages; there are bound to be non-selling items taking up space and creating non-income producing inventory. Additionally, many of these items can be found anywhere, often at a discounted price—particularly in the major chains. Even so, these products are a necessary evil. But these issues can be mitigated by culling out the “dogs” and through creativity elsewhere in the store.

To create change in any business, it is helpful to take an alternative outside view. If 

 retailer looks down at their product mix and departments, they might come to some rather easy, obvious conclusions. For example, if a store had 20 feet of greeting cards displayed on old, discolored metal shelving, a business owner might quickly guess that, with people texting and emailing assorted greetings, there may have been a drop-off in these sales. They might imagine a terrific variety of cards in only 10 feet of space, presented on an upgraded display. With an inventory-reducing sale, they would (1) lower their inventory to an appropriate level and (2) make available space for a fresh, new department with sales-producing merchandise. This isn’t an attack on the greeting card industry, but an example to make a point.

Lake City Pharmacy circa 1923. The pharmacy was opened in 1903 by Ely Langerman. Pictured standing is Al Langerman who was at times president of all Illinois pharmacy associations. 

Another general no-no in retailing is holding on to dead merchandise. I once stood in an average-size pharmacy with small front counter. Although there was limited room available, they found the space to display a small, cut-open cardboard box containing assorted discolored greeting cards for 10 cents each! If asked, I would have recommended that they burn them—or at least toss them in the trash—and instead use that limited, precious, highly viewed space to display a tester of either a specialty hand lotion or pain relief cream, something not available at a chain store. The resulting sales are an obvious, immediate win, and the potential of creating future refill sales from those limited-availability products is often more important. Decisions like those can turn the store into a go-to destination for sought-after specialty brands and products. Making a store unique, interesting, and visually appealing can be rather easily accomplished, and presenting new, impulsively purchased items that have counter or floor displays—provided by manufacturers!—can create quick, long-term results.

Recognizing categories of items that show movement offers an opportunity to add companion products to build success. Snacks, candy, gifts, toys, cell phone accessories, and crossover health food industry alternative remedies are some great options.

At the end of the day, additions, subtractions, and moving around products and departments will make a substantial impact on a pharmacy’s bottom line. Recruiting an employee to aid in the project can be very helpful, and great improvements can often be accomplished quickly and with relative ease. Remember, you’re paying rent for that front-end real estate; it should help pay the light bill and the rent as well!!


We must be prepared for successes and failures in our selection of new product mixes. It’s always wise to walk before we run amok. Close out mistakes and expand or evolve successes. Many improvements take mindful, but minimal, effort. Success breeds success, so the process can be mildly addictive. Take these suggestions as prescribed, and remember to have fun along the way and bank the fruits of your labor.

Independent pharmacy owners need to pay more attention to the front end of their store. 