A comparison for pharmacy owners, staff, and suppliers.
John Saywell, Chief Retail Scientist, The IPG
The Strategic Choice
Independent community pharmacy does not win by becoming a smaller version of a corporate pharmacy. It wins by being something those models cannot be: a disciplined, data-led health retailer wrapped around a trusted clinical relationship.
Click to download a copy of this handout - which contrasts the two approaches to help you explain your strategic direction to staff and suppliers.
The Unichem and Life Pharmacy Paradox
Unichem and Life pharmacies sit under the corporate Green Cross Health umbrella and represent a middle ground - branded as local health destinations but structurally driven by central buying, national supplier deals, and head-office marketing targets.
While individual pharmacists may deliver excellent care, the business model often pulls them toward price and promotion to hit corporate KPIs. They struggle with the same tension: trying to be local and clinical while operating within a template designed for scale and margin extraction to satisfy shareholders.
The IPG’s data-driven core-range model avoids this conflict entirely. You control the space, the inventory, and the service mix. Decisions are driven by your local data and your clinical vision, not a national supplier-funded corporation.
What This Means in Practice
For Staff Conversations:
"Why are we reducing our range?"
"We're not reducing choice for customers - we're reducing confusion, clutter and waste. We're keeping the proven best-sellers and clearing the slow-movers that tie up our money and make it harder to keep top products in stock. This makes your job easier and gives customers faster, clearer answers."
"But Chemist Warehouse has everything!"
"And they need to, because 'everything' is their brand. Our brand is being the best local health professional. That means a smart, curated range that supports our clinical work, not a warehouse trying to compete on price with every other discounter."
For Supplier Conversations:
"Why won't you range our new line?"
"Every new product must pass our Core Range Decision Flowchart. If it's not doing a different job from what we already stock, not a proven best-seller or up-and-comer, and not offering clearly better margin, efficacy, or promotional opportunity, we won't add it. We're protecting our capital and shelf space for products our customers actually ask for."
"But the chains are all ranging it!"
"The chains range everything because they can afford to and because their model depends on visible choice. Our model depends on expert advice and a range our staff can confidently recommend. If your product becomes a proven winner in the market, we'll reconsider - but we're not taking a punt on every new SKU."
The Bottom Line: Two Different Games
Your Strategic Position
Independent pharmacy wins by being disciplined, data-led, and different. You don't have to beat Chemist Warehouse at their game - you change the game entirely.
Focus on core healthcare, cut the clutter, invest the savings in clinical and retail services and consulting rooms, and build the customer experience and local relationships that corporates cannot copy.
That's how you stand apart rather than being squeezed between corporates at both ends.
Key messages for Your Team
We are choosing to be different, not cheaper
Our range is curated by data and clinical purpose, not supplier catalogues
Every product on our shelves has earned its place
We're investing freed capital into services, people, and premises
Our reputation rests on expert service and advice and continuity of care, not price points
This strategy protects our business and your jobs in a changing landscape
Key Messages For Your Suppliers
We use a rigorous Core Range Decision Flowchart - new products must pass clear tests
We prioritise proven best-sellers and strategic partnerships, not speculative ranging
We measure GMROI, stock turn, and dead stock - poor performers are cleared quickly
We're open to promotional opportunities with key suppliers that align with our OTC formulary
We're focused on long-term profitability, not short-term rebate chasing
Partner with us on clinical education and service support, not just product push
