by Kyle Lentz for our “99 Ways to Make a Positive Difference in Your Pharmacy” blog series
The old saying for independent pharmacy stock levels is, “One for show and one to go.” That’s great for items that typically sell less than one unit per month per store, but what is your philosophy on the higher velocity items that your customers purchase regularly? Implementing that same philosophy may leave an empty space on your shelf, and cause a customer to walk out of your store empty handed.
In order to avoid this situation, there are several things you should consider. First, is the concept of destination items. Destination items are typically found in independent drugstores, and if they are not readily available, the customer will walk. No substitution will do, as this is a planned purchase and they came specifically for that product. A good example of a destination item is an allergy product. The typical allergy sufferer uses a brand they trust, and if they receive relief, they are unwilling to try anything else. If their brand is out-of-stock, they will find it at an alternative location, and might not come back to your store for it again.
The second is the concept of Never Outs® products. These are products, that once the sales are combined, generate up to 50% of department sales. Each of these items is a best seller and may also be classified as a destination item. A great example of a Never Outs item is Mucinex-D®. This item is typically found in drugstores because of its behind-the-counter status. It is one of the best sellers in the cold & allergy category and you should always have additional stock on hand. The “two SKU” philosophy on this item will leave you with an out-of-stock situation that is less than ideal for your customers or for your store’s bottom line.
So, the “One for show and one to go” philosophy may work great for less popular items, however, keeping greater stocking levels of your destination and Never Outs items is a philosophy that will pay dividends for your drugstore, as well as keep your customers shopping at your establishment.
Kyle is a category analyst for our core TEMPS program, and a member of our new item alert team. He supports national wholesale accounts and works directly with manufacturers, distributors, and retailers to analyze client-specific data and develop specialized planogram solutions.