Introduction: 

A successful merchandising strategy can increase a department's sales by 30% to 40% in some cases.(The student)

In this article, we explore the significant impact of merchandising strategies in the pharmaceutical sector. In the first part, we examine the trends and approaches adopted in different European countries, with a particular focus on France, the UK and Germany, 3 completely different approaches. 

We look at strategies implemented in France, the UK and Germany, and analyze the regional nuances that shape pharmacies ' merchandising choices. 

In a second article, we'll look back at the fundamentals of merchandising as applied to the pharmaceutical sector, and present the innovations used in the sector to digitize itself and better meet the needs of an increasingly demanding customer base.

Chapter 1: different trends in different countries

First and foremost, we thought it would be interesting to take a look at the various European trends and analyze the different strategies that emerge, depending on the country. We have chosen France, the United Kingdom and Germany as examples.

French Officines

In France, there are some 22,000 pharmacies which, in addition to dispensing medicines, offer a variety of services such as COVID-19 screening and vaccination, and checking the edibility of foraged mushrooms.

We have identified 3 types of French pharmacy, which we could classify as follows: "tourist" pharmacies, "care & nature" pharmacies and "modern and streamlined" pharmacies.

In some tourist towns, certain pharmacies have become real tourist attractions. Isn't that amazing? In fact, many (mostly American) influencers are documenting the "paradise" of French pharmacies on video with the hashtag #Frenchpharmacy. This hashtag now counts 261 million views on TikTok in particular). These videos highlight the range of high-end cosmetics, most of which are unavailable or available at very high prices in the United States, the Middle East and Asia. They feature brands such as Caudalie, Nuxe and La Roche Posay. This trend explains why pharmacies in tourist areas, such as Paris or Cannes, adapt their strategy (assortment, promotion, seasonality...) to suit this foreign clientele. The assortment and layout of the pharmacy will be designed so that visitors can quickly identify these highly sought-after brands, which are often highlighted with special furnishings, signage and promotional offers. The surface area is often close to 1,000m², spread over several floors in areas popular with tourists, and advisors often speak English. 

Care & Nature" pharmacies are generally located in more rural areas or medium-sized towns. Like traditional pharmacies , they are more concerned with prescriptions, and the idea is to take on a reassuring, professional role. The spaces are reassuring, with a wide counter allowing the pharmacist to spend more time talking to the customer. The focus is on comfort, with the integration of natural materials, wood and sober, harmonious colors. An underlying trend is that patients are increasingly turning to natural, ethical and organic products, with a more pronounced "well-being" claim. 

This consumer trend is also reflected in the pharmacy range. In fact, cosmebio figures show that 40% of French people regularly buy cosmetics in pharmacies, and 64% of them buy organic cosmetics.

Finally, in city centers, we have to respond to a clientele that is often in a hurry and doesn't necessarily take the time to seek advice. The answer: a contemporary, uncluttered style that offers an efficient, fluid customer experience.

A medium-sized counter, sometimes with a dedicated checkout for parapharmacy, will enable us to respond effectively to customers who want to get straight to the point. Merchandising strategies are therefore focused on creating a simple, neutral layout, with highly identifiable product segmentation. 

The rise of private label : 

One in three customers has already bought a private label product in a pharmacy or parapharmacy in France. (source)

Differentiating through private labels

Another fundamental trend in the sector is the creation of numerous private labels. Like the food retail sector, the major pharmaceutical groups and distributors are increasingly offering private labels. These brands are still little-known, and include Népenthès, Évolupharm, Plus Pharmacie, Giphar, PHR and Univers Pharmacie. These brands initially offered basic products and, according to studies reported in Les Echos, still account for 66% of sales. 

The creation of these professional brands or product ranges is an excellent way for pharmacies to consolidate their expertise, build customer loyalty and compete with bigger, better-known brands thanks to their low prices, which also mean better margins for them. 

The case of the United Kingdom

Today, we have around 17,000 pharmacies across the UK. In the English healthcare system, medicines are reimbursed very little or not at all, which has shaped the way pharmacies have been built up. The term "drugstore" is often used, a broad concept that encompasses chemist-pharmacy , newsagents and food shops. It's not unusual to find diet supplements side by side with sodas or packets of potato chips. 

In the UK, the offer is highly concentrated, with Boots leading the way. Pharmaceutical merchandising is highly developed, notably with a wide range of parapharmacy products. Given the breadth of the offer, floor space is on average much larger than in France. British pharmacies frequently adopt innovative strategies such as the use of interactive displays andself-checkoutkiosks to enhance the customer experience, which would seem quite incongruous in France today. Despite the widespread image of drugstores offering a multitude of products, many small pharmacies are still to be found in urban and rural areas. 

German pharmacies

In Germany, there are around 18,000 pharmacies. Pharmaceutical merchandising is mainly based on traditional practices, emphasizing product quality and customer service. German pharmacies are renowned for their wide range of products and their expertise in pharmaceutical advice, which promotes customer loyalty and maintains their competitiveness in the market. 

Unlike in France, traditional German pharmacies are often more spacious. However, some of them are abandoning this layout in favor of less elaborately designed pharmacies , in the image of the "discounter" merchandising found in food stores such as Aldi and Lidl. It's not uncommon to find boxes of medicines stacked on shelves or simply left out in the aisles. This "rudimentary" layout is easily explained by the priority of German pharmacies : affordability. This is understandable, given the high cost of medicines in Germany and the growing competition from online pharmacies .

Chapter 2: The fundamentals of pharmaceutical merchandising

Merchandising fundamentals

Merchandising is based on five fundamental aspects that influence a consumer's propensity to make a purchase: the window display, the layout of the point of sale, the product assortment, and the ambience of the point of sale. The shop window is the first point of contact with the potential customer, so it's essential to organize it in a thoughtful and relevant way to convey the right message. However, as visual merchandising techniques are not widely used in the profession, and certainly in the interests of optimizing space, many pharmacies cover their windows with vitrophanies. 

The layout of the sales outlet is also essential, as it must allow for a clear presentation of products, taking into account their position on the shelves. Product assortment must comply with Keppner's 5B rule (LINK ), guaranteeing the right product, in the right place, at the right time, at the right price and in the right quantity. 

Last but not least, sensorial marketing helps to create an environment that is conducive to purchase, by creating a feeling of well-being and confidence in the consumer, in line with the brand's positioning.

If you'd like to find out more about the different merchandising strategies, read our article " Merchandising strategies: the art of seducing consumers".

Merchandising fundamentals applied to pharmacies

• Window display: depending on the positioning chosen by the pharmacy, the window display should convey the corresponding message. For example, a tourist pharmacy will showcase its range of products, so coveted by visitors.
• Point-of-sale layout: More than 80% of purchases in convenience stores are made with a visual eye-catcher(comptoire-emballage.com). A successful layout helps to create a welcoming, organized environment, making it easier for customers to find their way around, and reinforcing the pharmacy's image as a professional, trusted space - all while increasing the average shopping basket. Some pharmacies, for example, will design their stores according to themes such as "well-being", "baby", etc...
• Assortment: it's essential to respond to local demand with an adapted offer, while avoiding the risks associated with overstocking or out-of-stock situations. Pharmacies therefore have every interest in choosing a seasonal merchandising strategy, for example. In other words, their assortment will vary according to the season, and therefore to customers' seasonal needs. 

Here is an example of a seasonal assortment for a pharmacy: 

• Spring: Seasonal allergies, sun protection
• Summer: sun protection, insect bites, moisturizing
• Autumn: Colds and flu, vitamins
• Winter: seasonal virtues, skin care, respiratory care 

• The ambience of the sales outlet: pharmacies must be places that inspire professionalism and confidence. Their ambience must be in tune with the expectations and needs of their clientele. We can take the example of pharmacies focused on well-being and nature, with carefully selected materials such as wood and plants.

We advise pharmacists to carry out shopper studies to decipher the customer's buying journey, and to rely on shopper behavior that goes beyond the declarative. This is the subject of our latest webinar, co-organized with research firm Enov, on the Virtual Shopper Experience. 

In the second part of this article, we'll look at the fundamentals of merchandising as applied to pharmacies, as well as the challenges and new trends in pharmaceutical merchandising.