Strategies for Independent Pharmacies to Harness Consumer Trends and Meet the Competition

Independent pharmacies have long been trusted pillars in their communities, providing consumers with unmatched care and personalized service. However, these pharmacies face mounting challenges amid increased competition, rising operational costs, and complex reimbursement models. At the same time, consumer expectations are also shifting, with shoppers seeking convenience, competitive pricing, and products that align with their values.

Pharmacies face mounting challenges amid increased competition, rising operational costs, and complex reimbursement models. | Image Provided By The Sponsor

To meet these challenges, independent pharmacies must rethink how they engage with consumers, particularly at the front of the store. Front-end retail operations can often be a lower priority, but this space presents opportunities to boost revenue and differentiate from competitors. Independent pharmacies can gain a competitive edge by aligning with emerging consumer trends—the rise of wellness and self-care, consumer trust in private-label brands, and a preference for sustainability-oriented products.

WELLNESS TRENDS DEMAND CONSUMER EDUCATION

More consumers are prioritizing wellness and self-care,¹ meaning pharmacists have an opportunity to play a bigger role in educating them about over-the-counter (OTC) product uses and benefits. In recent years, we’ve seen heightened interest in preventative care solutions for everything from immunity support to stress management. Consumers exploring these medications and supplements often face a dizzying array of options. A knowledgeable pharmacist can simplify those choices, helping shoppers find the right products for their needs and establishing themselves as a go-to resource for wellness: a value-add that appeals to health-conscious shoppers.

In-store marketing can play a powerful supporting role, supplementing pharmacist guidance with compelling and informative displays. Product signage, shelf talkers, endcap displays, and other visual cues can make it easier for shoppers to discover new solutions and understand products’ benefits. Fortunately, many OTC suppliers now offer co-branded or turnkey in-store marketing support. Partnering with suppliers that provide these tools can help independent pharmacies create an engaging storefront experience without a large upfront investment.

LEVERAGE PRIVATE-LABEL BRANDS FOR AFFORDABLE OFFERINGS

Another area of opportunity lies in private-label OTC products. Consumers increasingly choose these products over their name-brand counterparts, with 89% of shoppers saying they trust private-label products as much as national brands.²

Offering a comprehensive private-label portfolio allows independent pharmacies to provide the quality products consumers expect at more accessible price points. This affordability is crucial to attracting and retaining customers in challenging economic times. By offering trusted, competitively priced OTC products, pharmacies can reinforce their roles as reliable healthcare partners who look out for their customers’ financial and physical health.

Private-label offerings can also support pharmacy financial health, sometimes delivering up to twice the gross margin of national brands.³ Stocking a full suite of private-label options can drive revenue while supporting consumer trust and satisfaction.

MEET CONSUMER PREFERENCE FOR SUSTAINABILITY

Sustainability is no longer a niche concern but a top priority for many shoppers, including those shopping for OTC medicines. In fact, a recent survey showed that 85% of consumers prioritize sustainability-focused products.⁴ Consumers seek brands that reflect their values and are often willing to switch retailers for greener options.

Independent pharmacies can respond to the increasingly prevalent sustainability mindset by stocking products with recyclable, compostable, or refillable packaging. For example, Foster & Thrive offers private-label OTC medicines in recyclable aluminum packaging to help reduce plastic waste compared to traditional packaging.

These sustainability efforts don’t have to come at a premium. Consumers increasingly expect eco-friendly options to be available at a fair price, and by selecting private-label partners who share these priorities, independent pharmacies can deliver on both fronts.

TURNING TRENDS INTO LONG-TERM LOYALTY

Independent pharmacies have always been more than just places to fill prescriptions—they’re trusted pillars in their communities, known for personalized service, excellent care, and deep-rooted customer relationships. While these pharmacies are facing increasing competition and rising costs, the trust these businesses have built is a powerful differentiator.

By strategically responding to key consumer trends—wellness and self-care, confidence in private-label brands, and demand for sustainable options—independent pharmacies can extend that trust beyond the pharmacy counter and into the front of the store.

With the right partners and strategies in place, independent pharmacies can help build a more resilient, profitable future that honors their legacy while evolving to meet the needs of today’s consumers.

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REFERENCES

1. McKinsey & Co., The trends defining the $1.8 trillion global wellness market in 2024, January 2024. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-trends-defining-the- 1-point-8-trillion-dollar-global-wellness-market-in-2024

2. Daymon, 2022 Private Brand Intelligence Report, May 2023. https://daymon.com/2022-private-brand-intelligence-report/

3. McKinsey & Co., The power of private-label brands in distribution, January 2024. https://www. mckinsey.com/industries/industrials-and-electronics/our-insights/the-power-of-private-label-brands-in-distribution

4. PwC, Consumers willing to pay 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh: PwC 2024 Voice of the Consumer Survey, May 2024. https://www.pwc.com/gx/en/news-room/press-releases/2024/pwc-2024-voice-of-consumer-survey.html