Chains find Internet builds synergy with the customer

More than a year after on-line pharmacies burst onto the scene, traditional drug chains regard the Internet as both a powerful business tool and a competitive force still to be reckoned with. A group of chain store leaders shared their views on the impact of the Web during a roundtable held last month in Palm Beach, Fla.

"The No. 1 use of the Internet is to provide health information," commented panelist Charles Conaway, president-COO of CVS Corp. "Then the customer comes in and talks to our pharmacist and says, 'Tell me more about that information.'" This type of synergy between the Internet and bricks-and-mortar pharmacies offers "a fabulous opportunity" to develop "a high-level of personalization" with the customer, said Conaway. At the same time, since it's "a new business model coming down on us," the Net is evolving into "a tremendous threat," he added.

Stephen Roath, president-CEO of Longs Drug Stores, said that the amount of pharmacy purchasing on the Web is "at a very low ebb," and he seriously questions how far it's going to go. Roath sees the Internet more as "a technology tool to help us advance our use and relationship with our customers." In particular, he thinks the Net would provide an opportunity to build a stronger relationship with today's teenagers, for whom "the drugstore has become more and more irrelevant."

Mary Sammons, president-COO of Rite Aid Corp., told the chains that the Internet "adds credibility to your reputation," even though it may not lead to an immediate sale. It reinforces the idea that "you are a provider they [the customers] can trust. The more they go to you for that [Internet health-care information], the more they will come to you for one-on-one information and advice."

It's "one more medium that a customer can connect with your business and develop a relationship with you," said Kevin Tripp, president-Drug Region, Albertson's, of the Internet. "Perhaps it's long-term."

Gerald Heller, president-CEO of May's Drug Stores, said that bricks-and-mortar chains are well-positioned to take advantage of the Internet because, with their name recognition, they don't have to spend as much money as the stand-alone sites to attract customers to their sites. As the head of a regional chain, he thinks regional chains will have to partner with other companies to make the most of their Internet opportunity.

Going on-line is "a great way to reach that younger population and get them into the habit of asking the pharmacist for health-related information," commented Craig Fuller, president-CEO of the National Association of Chain Drug Stores, who moderated the roundtable.

Among other issues raised at the panel meeting was the pharmacist shortage, which Tripp (Albertson's) called "our greatest strategic threat as an industry." It's not just a matter of filling a certain number of vacancies, he emphasized; "it's ultimately what we are going to ask pharmacists to be and become." Today, many pharmacists—particularly the younger ones—want something more than bringing home a good salary and working 50-60 hours a week, he said; they're looking for "a professional experience." Since pharmacists are "our future," this is an issue that cannot be ignored by anyone who operates a pharmacy.

Sammons (Rite Aid) underscored the importance of working with "state legislators" about allowing pharmacists to do what they consider to be their real role.

Heller (May's) cited some of the challenges and frustrations chains face in trying to encourage pharmacists to be more interactive with patients and get away from the mundane task of filling and counting: "We're bridging two different pharmacist backgrounds—Pharm.D. and B.S.—a group of young pharmacists and old-line pharmacists with habits that are tough to break. On top of that, we have a shortage. There's a lot of frustration out there—not only from the professional pharmacist's standpoint but also from our own standpoint…. We all know where we need to be; the biggest challenge is how to get there and to get there efficiently."

The roundtable was held during NACDS' annual meeting, attended by more than 2,300 people. Taking over as NACDS chairman, Alan Levin—chairman, president, and CEO of Happy Harry's—also mentioned the "high frustration levels" among today's pharmacists. "It's because pharmacists do not have the opportunity to interact with patients as they were taught in pharmacy school," he said.

Levin suggested two steps to help alleviate the pharmacist shortage and reduce frustrations. The first calls for more involvement by anyone who has anything to do with pharmacy practice; the second step calls for a change in attitude about the role of pharmacists within chain pharmacy (see Drug Topics, May 15).

At the same time, said Levin, pharmacy must "educate consumers that prescription services are important health-care services, that the dispensing process is not an assembly line or a fast-food plan for health care."

Levin also called for drug manufacturers "to listen and respect pharmacists." He said he was "shocked" recently when he received annual reports from two large manufacturers who chose not to show a picture of a pharmacist or drugstore, "even though the profession of pharmacy and the chain drug industry account for better than 60% of their product distribution." He said the Pharmaceutical Research & Manufacturers of America, which represents drug manufacturers—or a major segment of them—"needs to listen to the pharmacist and the drugstore industry."

By Cheap Pharmacies

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