Aug 10, 2004
WASHINGTON, DC — August 10, 2004 — As supermarket pharmacies continue to expand across the U.S., companies are addressing pharmacist shortages, expanding Web operations, enhancing e-prescription capabilities and developing new strategies to reach the pharmacy consumer, according to the Food Marketing Institute’s (FMI) Report From the 2004 Supermarket Pharmacy Survey.
     

The report also finds that, in a highly competitive market, supermarkets are increasingly reaching pharmacy consumers by marketing their stores as a one-stop, whole health solution.
     

“Today’s supermarket pharmacies are encountering complex challenges associated with Medicare reform, mail order and reimportation,” said FMI Senior Vice President Michael Sansolo. “At the same time, pharmacy customers are more demanding than ever, concerned about price, convenience, service and selection.
     

“The advantage for supermarkets with pharmacies is their unique ability to provide a total health solution to consumers by offering prescription medications, professional healthcare guidance, a variety of healthful food choices and a broad array of information resources — all in one location.”

Food Retail Companies Attract Pharmacists with Competitive Compensation

Only 13 percent of food retail companies reported the need to reduce pharmacy hours due to a lack of pharmacist staffing in 2003, down 33.3 percent from the year before, according to the survey. Survey respondents attribute the decline to improved recruiting and training initiatives, enhanced compensation packages and an increase in the number of students graduating from pharmacy schools.

Staffing issues have also been addressed by employing ancillary staff. According to the survey, half of food retail companies use specific criteria to add a pharmacy technician/clerk at a store. The number of prescriptions dispensed is the most critical factor in adding technicians, with 450 being the typical benchmark — an increase of 50 prescriptions per week from 2002. More than 70 percent of the surveyed companies have enhanced the skills of pharmacy technician staffs through specific training and certification programs.
     

Another efficiency solution is the use of interactive voice response (IVR), which allows customers to call in their refills and thereby avoid unnecessary waiting at the store. Food retailers reported a 30 percent increase in the use of this service, and an additional 56 percent plan to install IVR by the end of this year.

Web Sites, E-Prescription Services Expand As Mail Order Competition Increases

Food retailers continue to explore opportunities associated with the Internet, with 87 percent now having Web sites with the vast majority (88 percent) featuring pharmacy information, according to the survey. Pharmacy offerings include hours of service, store locations, prescription refills, general health information, health services available at company stores, insurance information and employment opportunities.
     

Supermarket pharmacies are also increasing e-prescription capability. Nearly 20 percent of survey participants report having the ability to receive e-prescriptions from physicians, and an additional 44 percent plan to have this service operational by the end of this year. Two-thirds of the pharmacies promote e-prescribing to physicians in their marketplace, indicating potential growth in this area.
     

One factor driving supermarket pharmacies to expand the above services is the growth in competition from mail order prescriptions. Approximately 64 percent of pharmacies reporting a decline in prescriptions filled per day cited competition from mail order as the primary reason.
     

Supermarket Pharmacies Popular With Consumers and an Important Revenue Source

American shoppers value supermarket pharmacies and increasingly view pharmacy services as an important part of their own total health solution. Hence, pharmacy departments have become an essential component in new store construction and store remodels.

Said Sansolo, “Pharmacy services have become a crucial element in contemporary food retail operations by providing an important service to our communities and becoming a proven force in retailers’ marketing strategies.”
     

To order Report From the 2004 Supermarket Pharmacy Survey, please visit the FMI Store at www.fmi.org/pub.