| Tue 23 Oct 2001, 0:00 | | Pick 'n Pay Enters The Retail Pharmacy Sector |
|
Top South African retailer Pick 'n Pay announced today that following a
highly successful pilot project and investigations into the retail pharmacy
sector, it has launched a new franchise pharmacy chain, HealthPharm, which
will mark its entry to this sector.
The investigations, on both the commercial and legal feasibility of a retail
pharmacy franchise model, showed that this model would be beneficial for all
parties and was in line with both present and proposed legislation.
Pick 'n Pay CEO Sean Summers says that the group is highly confident of
success and that it is a natural progression for Pick 'n Pay in its ongoing
commitment to providing the consumer with high quality products and services
at the lowest possible prices. This sector was identified as being under-
serviced in terms of retail innovation, product range and pricing.
"HealthPharm not only provides growth potential for the group, but yields
significant benefits to our consumers including competitive pricing,
outstanding service, a seamless interface with the medical aids and a
pleasant, integrated shopping experience."
Summers says that HealthPharm has been designed to extract the best of both
worlds. Pharmacists will own, operate and manage the stores, with Pick 'n
Pay - through the brand HealthPharm - providing world class support and
infrastructure, including branding, marketing, business support and
technology.
"We believe that our extensive experience in the retail industry, and
significant investment in retail systems will provide potential franchisees
and consumers with a world-class business model.
"Some aspects of retail pharmacy are not unfamiliar to us as we have already
been meeting the basic healthcare needs of our customers through our ranges
of OTC (over the counter) and nutritional products. In addition, we have
always had skincare, haircare and beauty products and accessories in most of
our Pick 'n Pay stores. This initiative will allow us to expand the
offerings in all of these areas and add the dispensing of affordable
medicines.
"Furthermore, our track record as one of the strongest, most consistently
successful players in the franchise arena, has enabled us to build a chain
of Pick 'n Pay group franchise stores totalling over 100, and to forge
excellent relationships with our franchisees."
HealthPharm managing director, Eric Wilson, says the pilot HealthPharm store
which has been testing various systems and retail concepts, has already
opened its doors at the Bryanston Shopping Centre. As part of its initial
investigations, Pick 'n Pay worked with various pharmacists in the industry,
including Valu-Med, which agreed to utilise its store in Bryanston for the
pilot project.
The initial roll-out period of two years will see HealthPharm focusing its
efforts regionally in the Western Cape, Johannesburg/Pretoria and the Durban
area, to achieve national coverage as quickly as possible. Thereafter,
HealthPharm plans to bring on board between 20 and 40 new stores each year
with the ultimate target of a chain of about 200 pharmacies by 2006.
The retail pharmacies, which will vary in size from 75 m} to 2000 m}, will
be located at or near Pick 'n Pay stores. Wilson says there will be three
variations of the concept:
- Small stores up to 150m2 within the envelope of a Pick 'n Pay, but
beyond the Pick 'n Pay till-points and with a separate street or mall
entrance.
- Medium sized stores up to 400m2. Existing pharmacies which are
converted and rebranded, typically at, or near existing Pick 'n Pay stores.
- Large stores up to 2000m2. Near existing large Pick 'n Pay group
stores or free standing destination stores.
Says Wilson: "We believe we have a great deal to offer both existing
pharmacies, who have the opportunity to further improve their businesses,
and for new entrants the pharmacy franchise provides a lower barrier to
entry. Benefits include increased dispensary volume due to higher customer
footfall, an integrated business system, enhanced buying power, professional
merchandising advice and support and training opportunities."
Concludes Summers: " We believe that Pick 'n Pay is ideally placed to
service the retail pharmacy sector with significant benefits to consumers,
franchisees and ultimately shareholders, as we predict that this sector will
be a key future growth area for the group."
Interested parties can obtain more information on the franchise model on the
website at www.pnpfranchise.co.za.
ends
Issued by: Michele Vermaak
Primary Focus
Telephone: (011) 726-1109
083 626 3769
Email: prifocus@intekom.co.za
On behalf of: Pick 'n Pay Group Enterprises
Lyndsay Webster (021) 658-1000
