The importance of effective retail merchandising in a pharmacy cannot be understated. It is the only type of store that comes to mind where a customer’s primary reason for visiting is not always to make a purchase. Although not true for all pharmacies, for many, in particular small independent pharmacies, the main reason for visiting will be to pick up a prescription. Therefore, a retail pharmacy has to arguably try harder to encourage impulse purchases.
The environment of a pharmacy is different to a normal retail store. It can sometimes feel clinical due to the medical aspect of the operation, so attention has to be paid to merchandising products in a way that appeals to the customer’s mood. Many people don’t typically go into a pharmacy to browse. They are there to complete an errand, and this no-nonsense approach dictates a more simplified and convenient solution.
Retail pharmacies have to put more effort into persuading the people who are picking up their prescription to buy something else, and do it in a way that attracts the attention of someone susceptible to an impulse buy. Successful merchandising is used to influence and entice, and when done well it improves the customer experience and increases sales.
In a retail pharmacy environment, effective merchandising is a key weapon to drive sales. Here are some top tips to develop a winning strategy:
1. Merchandise with Your Customer in Mind
Look at your pharmacy through a customer’s eyes. Attention must be paid to creating a store layout that makes sense, one that flows correctly and ensures that your customers can easily find the things they need and have an enjoyable experience whilst doing so. For example, is the prescription counter clearly signposted? Are items such as toiletries and make-up visible and accessible to customers while they are waiting for their prescription? Are the baby aisles wide enough to accommodate a pram? A merchandising plan will only be successful if you meet your customer’s primary shopping mission.
2. Maximise the Potential for Cross-selling
Successful merchandising increases the probability that your customer will be tempted to buy more items on impulse. This increases customer engagement with your product range and brand, while increasing sales. An effective method is to place complementary items together, such as hairbrushes next to shampoo, and shower gel next to loofahs. Another key strategy is to place eye-catching displays close to the prescription pick-up counter, and this will increase your chances of enticing customers waiting in the queue to grab a can of deodorant, a new type of breakfast bar, or a Christmas gift set for a relative.
3. Highlight your Best Sellers
Ensure that you display your biggest selling items in the best possible position. Don’t make the mistake of placing a slow-selling, less popular item in your top location with the hope that it sells more units; this strategy will never be as successful as making sure your best sellers are visible and accessible.
4. The Store Layout Must Make Sense
One of the most critical elements is developing an effective layout design - to maximise a pharmacy’s selling potential, you must understand customer flow and the common patterns that emerge when customers interact with products. A pharmacy should be organised for a logical unfolding or discovery of products by shoppers, and it needs to be an easy environment in which to shop.
5. A Continuous Process
Don’t ever think you’ve finished. There is always room for improvement. Walk through your pharmacy on a daily basis and review the way it is presented to customers.
Maintaining product displays that are clean, well-organised and fully stocked, is part of delivering a great shopping experience. Remember that as the seasons change so do customer needs, so your displays and types of merchandise should be replaced in order to maximise sales. For example, during the Summer customers will be more open to purchasing products such as suntan lotion, insect repellent, and sunglasses, whereas in the Winter months they are more likely to purchase cold and flu remedies.
6. POS and Signage
Customers expect an easy shopping experience, and ensuring that your products are beautifully displayed and correctly priced are crucial factors. Point-of-sale and signage must be clean and bold to persuade customers to buy. It also pays to update signage and rotate your displays to keep things fresh and interesting for returning customers.
7. Click and Collect
In the UK, consumer culture is increasingly embracing the click and collect model. Global Data forecasts that Click and Collect will account for 13.9% of sales by 2022, with significant growth in the retail pharmacy industry. Both the Co-operative Group and Boots now offer online ordering and pick up at the customer’s location of choice, and have also been experimenting with prescription collection lockers to distribute medicine more efficiently, which is more convenient for the customer.
A strong online presence combined with an offline distribution service will be an important strategy. Part of the ingenuity of the Click and Collect model is the way that it increases footfall. Once customers have picked up their prescription, an effective merchandising strategy will be crucial in persuading them to make additional purchases. Ideally the Click and Collect point would be located at the furthest point from the entrance, so that customers spend more time in the pharmacy, increasing the chance of seeing something that grabs their eye and motivates them to spend.
8. Maximise Your Christmas Sales Potential
Pharmacies aren’t typically the first type of store that comes to mind when thinking about where to do Christmas shopping. However, with planning and creativity, a pharmacy can do well during the Festive period by focusing on selling quality products that stand out in the store. Christmas is the perfect opportunity for pharmacies to upsell products such as perfume, wash sets, and beauty products. Remember, don’t wait for the right opportunity to come along: create it. Ensure that you are placing the best items at eye level, and make the most of POS displays that draw the eye and entice customers to buy. Using attractive window displays to entice shoppers into your pharmacy is also important.
Ensure Your Pharmacy is a Winner
Successful merchandising is an intricate blend of art and science. The techniques are based on consumer behaviour, and when done right, it contributes to strong sales and a better shopping experience for the customer.
RMS is one of the leading providers of merchandising and retail support services in the UK and Ireland. We’ve delivered successful projects over many years for retail pharmacies, including Boots, LloydsPharmacy, and Well Pharmacy.
