Traditional pharmacy moves into the Supermarket

In January 2003, de-regulation of the NHS system for dispensing prescriptions was announced. This has allowed any grocery outlet to dispense NHS medications under the supervision of a pharmacist, doing away with the previous contract system which limited the number of NHS dispensing locations to just over 12,000. The rise of the multiples dramatically changes selling into the grocery sector. Traditional sales representatives have been replaced with key account managers.


Grocery outlets saw the strongest growth in Pharmacy OTC distribution, increasing their retail share to 30%. They made particular gains in analgesics, cough, cold, allergy and digestive remedies. Grocery outlets choose to focus on price as the key to driving footfall and target top brands for price discounts in the hopes of luring more OTC customers. Following the collapse of Retail Price Maintenance (RPM) in May 2001, grocery outlets were primarily responsible for slowing growth in OTC value sales. Their increase in share came at the direct cost to independent pharmacists.

There is also a vast and growing range of 'personal care' items that are promoted within the retail sector, ranging from Toothbrushes and Condoms to Tampons and Antiseptics, some of these with massive brand value. This segment is frequently supported with consumer marketing campaigns to get customers established on the product range.

Sales to the Grocery Sector are largely through means of National Account Executives / Managers based at Head Office, who will service the major Supermarkets and Wholesalers. In addition to pharmaceutical sales, this can involve sophisticated 'Category Management', including display, pricing and promotional planning.