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Pharmacy Retailing in the UK | Market Report Product Image

Pharmacy Retailing in the UK | Market Report

  • Published: July 2012
  • Region: United Kingdom, Great Britain
  • 149 Pages
  • Verdict Research Limited

FEATURED COMPANIES

  • Asda
  • Boots
  • Lloydspharmacy
  • Morrisons
  • Rowlands Pharmacy
  • Sainsbury's
  • MORE

With an ageing population, significant changes in government policy and consolidation in the market, Pharmacy is an ever-changing sector. Learn where the opportunities and threats are in the market and how to manage these most effectively for your business.Reduce the impact of changes in government policy on your business by being prepared and understanding where the greatest threats will come from.Use the data, forecasts to 2015, and insight on the market, including NHS receipts and OTC, to help form an effective growth strategy.

Understand the impact on pharmacy retailing of the Boots/Walgreens merger and how the investment will increase competitiveness in the sector.Identify the opportunities to grow business in this sector by comparing strategies of the key players in the market and their performance metrics.In 2011, the government announced plans for changes in the control of entry rules that would end the 100 hours exemption and this has prompted a rush of opening applications which we forecast will dilute profitability. 250 new pharmacies opened in the first four months of 2012.Furthermore price deflation is making the pharmacy model non viable.

Cost per prescription READ MORE >

EXECUTIVE SUMMARY
Key findings
(Untitled sub-section)
Main Conclusions
Market growth disappoints – NHS volumes up but prices down
GPs are now a competitive threat for retailers
100-hour pharmacy openings have negative impact on profitability in sector
Uncertainty over national versus local commissioning could hit services income
Value-based pricing will hit prices in pharmacy market …
… as it heads towards patent cliff
Walgreens' takeover of Alliance Boots will intensify competition
Grocers aggressively targeting pharmacy growth - collective market share 11.8% in
But strengthened Boots poses a danger to grocers
Other major specialists in retreat
Healthy Living Pharmacies future blueprint for growth
Market dependent on improved consumer environment
Need for format innovation like Lloydspharmacy's Health Village …
… and promotion as trustworthy places for advice
MARKET ANALYSIS
Pharmacy market definition
OTC sales much more resilient than NHS in 2011 and
Volume growth diluted by rise in pharmacy numbers
Pharmacy growth slows in subdued retail market
Market drivers
Ageing population means greater medical need
Distribution channels
Pharmacy numbers rise
Prospect of further restrictions lead to wave of new openings
COMPANY DATA ANALYSIS
Market shares
Three leading specialists slip back and grocers gain share
Grocers strong in health & beauty but lag in pharmacy
Winners & losers
Co-operative and top grocers the biggest winners over five years
Key operating statistics
Space productivity likely to fall in
OUTLOOK
Key Issues
Alliance Boots takeover could halt grocers' expansion
Other benefits on service provision and technology
Impact on other players and the market generally
Flood of 100-hour pharmacies worsens revenue problem
GPs often behind 100-hour applications
Squeeze on revenue per pharmacy will lead to further consolidation
Likely control of entry changes are destabilising the sector
Health & Social Care Act passed
What is the timescale for the changes?
Lack of clarity about services commissioning
Potential for conflict with GPs grows
Services grow but are they the future?
Healthy Living Pharmacies develop rapidly
Framework for service growth
Future funding packages also a factor
Medicine patent cliff comes closer
Value-based pricing looms
New pharmacy formats
Lloydspharmacy experiments with Health Village concept
Need for store innovation
Future key factor is NHS price deflation
OTC will lead weak recovery
Consumer lifestyles provide potential for growth
Marketing will be key
ASDA
Strong image on price drives sales
Recent key events
Raises pharmacy profile with free and low price offers
Proposition
Financials
Capitalises on value image to grow sales
Space
Netto acquisition gives major space boost
Market shares
Netto acquisition boosts OTC
Outlook
Needs to go beyond price promotion in pharmacy
BOOTS
Walgreens takeover makes market leader even stronger
Recent key events
Takeover by US pharmacy giant reinforces strengths
Proposition
Financials
Profit margins grow as latest sales fall
Space
Store portfolio begins to grow again
Market shares
Decline in share continues under pressure from grocers
Outlook
Bigger group will lead to even greater efficiency
THE CO-OPERATIVE PHARMACY
Increases efficiency to overcome pressure on profits
Recent key events
Revamping pharmacy chain
Proposition
Financials
Profits squeezed again by Category M
Space
Slow expansion resumes
Market shares
Under renewed pressure from grocers
Outlook
Continued struggle to maintain profitability
LLOYDSPHARMACY
Targets revival of bottom line
Recent key events
Cuts costs and increases efficiency
Proposition
Financials
Sales up despite very difficult market
Space
Cutting back on underperforming pharmacies
Market shares
Holding its ground by fighting back on OTC
Outlook
Likely to outperform smaller specialist rivals
MORRISONS
Ambitious growth plans
Recent key events
Increasingly ambitious in pharmacy sector
Proposition
Financials
Core food business strong but current trading a worry
Space
Expansion ahead of target
Market shares
Grows but still lags grocery rivals
Outlook
Catching up with grocery rivals will be hard
Health & Social Care Act creates uncertainty
ROWLANDS PHARMACY
Tough challenge from grocers
Recent key events
Aims to counter grocers
Proposition
Financials
Profitability recovers slightly
Space
Static portfolio in tough market conditions
Market shares
Losing further ground in OTC
Outlook
Increases focus on health service role
SAINSBURY'S
Aims to double pharmacy revenue by 2014/
Recent key events
Presses ahead with expansion
Proposition
Financials
Sales growth slows down
Space
Reduces pace of expansion
Market shares
Pharmacy share resumes growth
Outlook
Lack of clarity over strategy
Supermarket competitors also targeting this market
Sainsbury's ambitious objectives will be hard to achieve
Online could help promote and grow pharmacy
SUPERDRUG
Revamp and loyalty card improve performance
Recent key events
Continues brand repositioning
Proposition
Financials
Profit margins remain very low
Space
Store portfolio stable as retailer concentrates on efficiency
Market shares
Share stabilizes under brand revamp
Outlook
Focus on beauty side of business
TESCO
Bets on 100 hour pharmacies for growth in health
Recent key events
Revamps whole approach to UK market
Proposition
Financials
Sales growth slows down
Space
Growth set to be slowed under new strategy
Market shares
Catching up on The Co-operative
Outlook
Race against time to expand pharmacy
GLOSSARY
Definitions
Financial Statistics – VAT
Trading Profile
Physical Development
Abbreviations
TABLES
Table: Retail pharmacy market definition
Table: Abbreviations and terms used in the report
Table: Retail pharmacy market 2002–12e
Table: Retail pharmacy market by revenue source 2002–12e
Table: NHS prescription items, dispensed volumes 2002–12e
Table: Changing population by age band 2011, 2016 &
Table: Pharmacy market per capita 2002–12e
Table: UK pharmacy store numbers 2002–12e
Table: Number of pharmacies by type 2007–12e
Table: Retail pharmacy market shares 2007–12e
Table: Market shares of NHS revenue 2007–12e
Table: OTC market shares 2007–12e
Table: Pharmacy sales per sq ft 2007–12e
Table: Asda company information
Table: Asda retail proposition
Table: Asda UK key operating statistics 2006–11e
Table: Asda UK trading record 2001–11e
Table: Asda store portfolio 2001–11e
Table: Asda pharmacy profile 2001–12e
Table: Boots company information
Table: Boots retail proposition
Table: Boots UK key operating statistics 2007–
Table: Boots UK retail trading record 2007–
Table: Boots store portfolio 2002–
Table: Boots pharmacy profile 2002–
Table: The Co-operative Pharmacy company information
Table: The Co-operative Pharmacy retail proposition
Table: The Co-operative Pharmacy UK key operating statistics 2007–
Table: The Co-operative Pharmacy UK trading record 2002–
Table: The Co-operative Pharmacy store portfolio 2002–
Table: The Co-operative Pharmacy pharmacy profile 2002–
Table: Lloydspharmacy company information
Table: Lloydspharmacy retail proposition
Table: Lloydspharmacy UK key operating statistics 2006–11e
Table: Lloydspharmacy UK trading record 2001–
Table: Lloydspharmacy store portfolio 2001–11e
Table: Lloydspharmacy pharmacy profile 2001–11e
Table: Morrisons company information
Table: Morrisons retail proposition
Table: Morrisons UK key operating statistics 2007–
Table: Morrisons UK trading record 2002–
Table: Morrisons store portfolio 2002–
Table: Morrisons pharmacy profile 2002–
Table: Rowlands company information
Table: Rowlands retail proposition
Table: Rowlands UK key operating statistics 2007–12e
Table: Rowlands UK trading record 2002–12e
Table: Rowlands store portfolio 2002–12e
Table: Rowlands pharmacy profile 2002–12e
Table: Sainssbury's company information
Table: Sainsbury's retail proposition
Table: Sainsbury's UK key operating statistics 2007–
Table: Sainsbury's UK trading record 2002–
Table: Sainsbury's store portfolio 2002–
Table: Sainsbury's pharmacy profile 2002–
Table: Superdrug company information
Table: Superdrug retail proposition
Table: Superdrug UK key operating statistics 2006–11e
Table: Superdrug UK trading record 2002–12e
Table: Superdrug store portfolio 2002–12e
Table: Superdrug pharmacy profile 2002–12e
Table: Tesco company information
Table: Tesco retail proposition
Table: Tesco UK key operating statistics 2007–12e
Table: Tesco UK trading record 2002–12e
Table: Tesco store portfolio 2002–
Table: Tesco pharmacy profile 2002–12e
Table: Pharmacy market categories & definition
FIGURES
Figure: Retail pharmacy market growth vs total retail 2002–12e
Figure: Population growth by age band 2011–
Figure: Change in number of pharmacies by channel group 2012e on
Figure: Market share by channel group 2007–12e
Figure: Health & beauty and pharmacy market shares 2012e
Figure: Consolidation of leading shares of the UK retail pharmacy market % 2007–12e
Figure: Winners and losers in pharmacy market share 2012e on
Figure: Pharmacy numbers at financial year end during 2012e
Figure: Changes in pharmacy numbers 2011/12e on 2006/
Figure: Key Issues in pharmacy retail
Figure: Average NHS revenue per pharmacy 2002–
Figure: New structure under Health & Social Care Act
Figure: Number of pharmacy contractors offering Top 10 local enhanced services 2010/
Figure: Lloydspharmacy Health Village
Figure: Retail pharmacy market, OTC, and NHS sales growth % 2006–15e
Figure: Pharmacy market sales growth vs total retail 2006–15e
Figure: Asda fascia
Figure: Asda pharmacy market share 2007–12e
Figure: Asda OTC market share 2007–12e
Figure: Asda NHS revenue market share 2007–12e
Figure: Boots fascia
Figure: Boots pharmacy market share 2007–12e
Figure: Boots OTC market share 2007–12e
Figure: Boots NHS revenue market share 2007–12e
Figure: The Co-operative Pharmacy fascia
Figure: The Co-operative Pharmacy pharmacy market share 2007–12e
Figure: The Co-operative Pharmacy OTC market share 2007–12e
Figure: The Co-operative Pharmacy NHS revenue market share 2007–12e
Figure: Lloydspharmacy fascia
Figure: Lloydspharmacy pharmacy market share 2007–
Figure: Lloydspharmacy OTC market share 2007–12e
Figure: Lloydspharmacy NHS revenue market share 2007–12e
Figure: Morrisons fascia
Figure: Morrisons pharmacy market share 2007–12e
Figure: Morrisons OTC market share 2007–12e
Figure: Morrisons NHS revenue market share 2007–12e
Figure: Rowlands fascia
Figure: Rowlands pharmacy market share 2007–
Figure: Rowlands OTC market share 2007–12e
Figure: Rowlands NHS revenue market share 2007–12e
Figure: Sainsbury's fascia
Figure: Sainsbury's pharmacy market share 2007–
Figure: Sainsbury's OTC market share 2007–12e
Figure: Sainsbury's NHS revenue market share 2007–12e
Figure: Superdrug fascia
Figure: Superdrug pharmacy market share 2007–12e
Figure: Superdrug OTC market share 2007–12e
Figure: Superdrug NHS revenue market share 2007–12e
Figure: Tesco health & beauty display
Figure: Tesco pharmacy market share 2007–12e
Figure: Tesco OTC market share 2007–12e
Figure: Tesco NHS revenue market share 2007–12e

A new report exploring pharmacy market trends, opportunities and inhibitors in this fast changing and dynamic sector. It also includes the latest market sizes for NHS & OTC and market shares and profiles on the leading retailers.

- Asda
- Boots
- The Co-Operative Pharmacy
- Lloydspharmacy
- Morrisons
- Rowlands Pharmacy
- Sainsbury's
- Superdrug
- Tesco

Note: Product cover images may vary from those shown

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