PHARMACIES UNDER THREAT
CHANGING TIMES: Competition from big retailers is causing the closure of many neighbourhood chemists
FACED with a weak economy, high rentals and electricity costs and competition from big retailers, neighbourhood pharmacies are finding survival tough, with many forced to close in recent years.
According to a new survey conducted by PPS, the financial services provider, pharmacists have voiced their concern over the impact of pharmacies in large retail chains.
The survey of more than 200 pharmacists – 22 percent in public employment and 78 percent in private – found that 86 percent of respondents felt threatened by the expansion of pharmacies in large retail stores.
Gerhard Joubert, head of group marketing and stakeholder relations at PPS, said this response was unsurprising. “People tend to have far less time these days, so that many may opt for a pharmacy that is in a large retail store as they can combine two trips in one.”
But ease of accessibility was not the only factor; larger retail stores might also be able to offer product lines at a discounted prices.
Graeme Sarembock, owner of Olsen’s Pharmacy in Long Street, one of only a few small pharmacies still open in the CBD, said he could not compete with the big retailers and had added curios to attract tourists.
Sarembock added that his was the only pharmacy left in Long Street where there had been six or seven.
Earlier this year, the historic White’s Pharmacy in Plein Street closed.
Michael Bagraim, chairman of the human capital portfolio committee at the Cape Chamber of Commerce and Industry, said because many jobs were created by small businesses, including pharmacies, the government should look after these businesses.
Bagraim said the Competition Commission had not yet looked at the pharmaceutical industry.
Ivan Kotzé, executive director of the Pharmaceutical Society, is optimistic that discussions with the national Department of Health indicated the department’s intention to improve access to pharmaceutical services.
With this in mind, the idea was mooted that state patients, especially those who were on chronic medication, could collect their medicine from private sector pharmacies.
Pick n Pay spokeswoman Tamra Veley said the store had seven pharmacies in the Western Cape, five in-store and two stand-alone, and growth was good.
Dan Zinner, head of health care at Clicks, said chain had 330 in-store dispensaries, of which 74 were in the Western Cape.
Zinner said there was a common misconception chains sold medicines more cheaply, but all medicines had a regulated single exit price.
“But Clicks has a relationship with multiple medical aids, who set the rate at which Clicks can charge a professional dispensing fees for their members. Often these rates are lower at Clicks,” he explained.