CONTENTS

Community pharmacy

Planning to open a retail pharmacy

Launching a new pharmacy

Physical environment of a retail pharmacy

 DESIGN
 STORE LAYOUT
 MERCHANDISE PRESENTATION

Objectives of layout design

Legal requirements

Types of community pharmacy

 Pharmaceutical center
 Prescription-oriented pharmacies
 Traditional pharmacies
 The super drug store

Services of community pharmacy

 Independent pharmacy
 Chain pharmacy

Types of layout design

 Clerk or personal service

 Self-selection
 Self-service

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Styles of layout design

 Center service
 Lobby check out or bull pen
 Off-the-wall
 Right rear service, often refer as “self-selection

Traffic flow analysis

Locating department

Arrangement of individual products

Planograms

Characteristics of layout design

References

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COMMUNITY (retail) PHARMACY:
“Is an establishment for selling of the product (or service) in individual unit to the final
consumer for consumption. Retailers provide service to the consumer on one hand (primary retail
role), and on the other hand, serve producers and wholesalers ( secondary retail role )”.

PLANING TO OPEN A RETAIL PHARMACY:

The pharmacist who has an aptitude for business, financially sound and ready to invest money in
business can open a realistic/wholesale drug store. The success of a drug store depends on a
number of factors some of which are;
1. Its location and proper layout design
2. Sound financial management
3. Qualified and experienced staff
4. Honesty, sincerity and hard work

5. Behavior among staff members and with customers Considerations. For opening A Retail
Pharmacy Whenever a person decides to opens a drug store the most important considerations
are;

1. A DECISION,
Whether to establish a new or buy an established retail pharmacy .Merits of buying an
established pharmacy include
1. May have favorable price

2. Already has demonstrated the value of its location and thus, saves time and efforts of
finding a right place
3. Pharmacy’s ability to attract customer can be evaluated/predicted and compared with other
existing pharmacies.
4. reduced uncertainties, since various risks are exposed

Demerits of buying an established pharmacy;

1. Price may be too high
2. The inventory may be near to expiry
3. Reputation or image of the present owner may be poor and will take time to establish a
good repute

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4. Physical facilities and fixtures may not be according to the specifications, or outdated, need
repairs or replacement

LAUNCHING A NEW PHARMACY

Launch of a new pharmacy require a comprehensive plan for a successful business. The planning
is needed in various areas including selection of retail category, financial sources, location
decision, physical facilities, and type of license, staffing, and spectrum of activities to be offered.
After a decision is made to launch a new pharmacy, the following considerations are made

1. SELECTION OF RETAIL CATEGORY/TYPE OF COMMUNITY PHARMACY

2. SELECTION OF SITE
For selection of site following factors must be considered Availability of finances Density of
population Buying habits of the public Number of doctors in the surrounding area Existence of
hospital Number of drug stores existing in the area Business locality Flow of traffic, in rural
areas or small town
OPTIONS FOR LOCATION

The two options for location are

1. Free standing location

2. Shopping centers

3. PHYSICAL ENVIRONMENT OF A RETAIL PHARMACY (design and layout)

4. STAFFING
5. SPECTRUM OF SERVICES
6. PROMOTIONAL ACTIVITIES
Legal Requirements to Start a Drug Store
1. Minimum Qualifications A person who is interested to start a retailsale drug store must be
Registered Pharmacist With State Pharmacy Council A person who does not possess degree or
diploma in pharmacy can also open a drug store but the licence for the retailsale of drugs will
only be granted to a registered pharmacist employed for the purpose
2. Minimum space area of 10 square meters 3. Application for the grant of licence

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 PHYSICAL ENVIRONMENT OF A RETAIL PHARMACY
(Design and Layout)

The location of pharmacy, its management and sufficient capital are major factors contributing to
a pharmacy’s success. A part from these another major factor is PHYSICAL ENVIRONMENT.
Physical Characteristics of a pharmacy are used to develop an image and draw customers,
consist of;

(1) DESIGN

A. the exterior design

B. the interior design

(2) STORE LAYOUT

(3) MERCHANDISE PRESENTATION

(1) DESIGN
a). exterior design; The uniqueness of the store front and the creative use of entrance, display
windows, and distinctive outdoor signs can help create a favorable pharmacy image

b). interior design; interior elements that serve as attention attractors include fixtures
lightening flooring colors scents and sounds temperature width of aisles cleanliness
modernization merchandise assortment display of prices ,and personnel

(2) STORE LAYOUT it involves

planning the internal arrangement of departments
allocating the amount of space for each department
Arrangement of drugs in each department

Before a pharmacist under takes to design a layout or modernize the pharmacy. He should
consider the;

 Objectives of the various designs.

 The type of community pharmacy

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  Types of layout design n
 Style of layout design

OBJECTIVES OF LAYOUT DESIGN

 The major objective in the design of exterior of pharmacy is to attract more patrons into the
pharmacy
 The overall objective of interior layout design is to increase the amount of the total purchases of
each person who enters the Pharmacy

In addition to the above, the six specific objectives are

 To enhance the general appearance of the pharmacy and to project a professional image
 To control payroll expenses through convenience and efficiency of the layout
 To improve patrons’ satisfaction and convenience
 To maximize the utilization of space
 To disperse and control the traffic pattern within the pharmacy, and
 To provide surveillance and reduce pilferage

Legal Requirements (drug Act 1976 and Punjab Drug Rules 2007)
The covered area of the premises is not less than 140 sq ft with minimum breadth of o8 ft in front
and height of 08 ft. In case of medical store 96 sq ft with minimum breadth of 08 ft in front and
height of 08 ft. The premises has proper and adequate facility for storage of drugs and for their
protection from direct sunlight, dust or dirt, including refrigeration facility. In case of a
pharmacy, the person shall display the word “Pharmacy” in white writing on a green colored
signboard having minimum length of 5 ft and width of 2.5 ft. In case of a medical store, the
person shall display the word “Medical store” in white writing on a blue colored signboard
having minimum length of 5 ft and width of 2.5 ft.

RETAIL CATEGORY/ TYPE OF COMMUNITY PHARMACY

Before transforming the idea of retail pharmacy to a real business, the owner must consider the
form of retail to be adopted. There are four major types of community pharmacies;

 Pharmaceutical center
 Prescription-oriented pharmacies
 Traditional pharmacies
 The super drug store

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 PHARMACEUTICAL CENTER
the pharmaceutical center, designed and developed by McKesson & Robbins and American
Pharmaceutical Association. It is similar to the prescription-oriented pharmacy. The design and
layout of this center is not as critical as with other type’s coz no merchandise of any kind is
displayed. The inventory is confined to legend and non-legend medication and few convenient
goods. The décor, the atmosphere, and the uncluttered floor space are the hallmarks of the
pharmaceutical center

PRESCRIPTION – ORIENTED PHARMACIES

This type of pharmacy usually occupies 1,000 to 2,000 square feet --and is so designed that the patrons
will have a comfortable waiting area near the prescription department --health related items, including
drugs, home health care appliances and supplies, and prescription accessories, are displayed near
its vicinity --the pharmacy may have separate room for fitting trusses and other orthopedic and
surgical appliances. --Cosmetics, gifts and a limited number of other items are displayed in the
other areas of the pharmacy

TRADITIONAL PHARMACIES
the traditional or conventional pharmacy usually occupies between 2,000 and 5,000 square feet.
The major objective of the layout design for this type of pharmacy is to disperse the customers
and expose them to all areas in the pharmacy. These pharmacies also should have a pleasing
appearance, project a professional atmosphere, be convenient for both consumers and employees,
and provide the opportunity for maximum sales at minimum expense. Although traditional
pharmacies vary in design, it is generally agreed that the best traffic flow can be achieved with
3:1 length to-width ratio

THE SUPPER DRUG STORE

the supper drug store occupies more than 5,000 square feet, generally 10,000 square feet or
more, with the design approximating a square. The basic objective in a supper drug stories traffic
control rather than traffic dispersal, which is achieved by the merchandising techniques used.
Many lines of goods are sold in this type of drugstore, and the layout design is usually of the
self-service type to facilitate traffic control and to provide maximum sales at minimum cost.

SERVICES OF COMMUNITY PHARMACY;

These major types of retail pharmacies may be

 Individual pharmacy store

 Chain store

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 INDEPENDENT / INDIVIDUAL PHARMACY
less investment No profit sharing Freedom in control and from restrictions

DISADV an independent retail pharmacy is a setup with a single retail store without branches or
any contractual agreement with others. Independent pharmacy exists at a single location.
However, it may be selling all drug categories including or excluding narcotics and other
controlled drugs.

ADV. Requires employee will remain an employee leading to less interest Unable to attract or
retain a qualified person

CHAIN PHARMCY
Chain pharmacy stores are branched stores existing at various locations but operating under a
common ownership. Chain pharmacy concept was first initiated a decade ago by FARMACIA, a
subsidiary of FEROZESONS, Nowhere. This concept is gaining success and there is an
increasing trend, particularly in big cities such as Karachi, Lahore, and Rawalpindi, Islamabad.
Currently there are various chain stores at city level including
FAZAL DIN’S PHARMA
PLUS SHAZOO’S ZAKA PHARMACY
PHARMAX CLINIXPLUS etc.

ADV. More credibility Wide geographical coverage through many chains Economical buying
due to bulk purchase making more profit Able to attract qualified persons because of having job
structure Efficient as can afford use of more employees, better service, sales training , use of
computer etc. Promotional activities can be initiated even with more investment

OWNERSHIP OF COMMUNITY PHARMACY

As far as ownership is concerned community pharmacy is with either Sole proprietorship
Partnership

TYPES OF LAYOUT DESIGNS

Historic types of service-oriented layout design three Types
1) Clerk or personal service
2) Self-selection

3) Self-service each is designed to achieve the objectives of three basic types of pharmacies,
i.e. professional, traditional, and drug super store, respectively

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1) Clerk service
the clerk service layout is the old traditional design used in most pharmacies before the trend
towards self-service and mass merchandising. It consist primarily of complete clerk service with
only a small part of the merchandise exposed for patrons to handle. This is one of the
compulsion for prescription products where there is no selection of the consumer at retail level.
Thus, in this setup there is no provision of self-service or self-selection. The pharmacy
personnel’s dominantly provide services for supply of drugs to the consumers, it facilitates
maximum interchange between pharmacy personnel and patrons. The modern example of this
layout design is the pharmaceutical center in which no merchandise is on display. This type of
layout design exist for prescription and selected nonprescription drugs, surgical and orthopedic
appliances and supplies.

2) Self-selection
In an attempt to provide adequate personal service in a more efficient manner, and thus be more
competitive with the larger super drug stores, many independent pharmacists now use the self-
selection layout design. This type of layout design dictates that clerk service be maintained at all
service-oriented departments, such as cosmetics, photo supplies, prescription, and selected
nonprescription drugs, surgical and orthopedic appliances and supplies, and veterinary
departments. Much of other merchandise, however, is displayed in a manner that the patrons
may see, handle, and select themselves but prescription item has no possibility of self-selection.
But it could be for the nutritional supplements, cosmetics, contraceptives and other OTC health
related items. A retail setup cannot run totally on self-selection bases on account of availability
of prescription drugs. This layout is most frequently found in the modern conventional
pharmacies

3) Self-service
The term self-service is restricted for layout utilizing a minimum of clerk service and exposes the
maximum of customers to handle. It is not possible to have 100 % self-service in pharmacy
because of the prescription drugs and item. This type of layout is most often used in super drug
stores but for the non-drug items and commodities such as cosmetics and nutritional
supplements.

STYLES OF LAY OUT DESIGN

Styles of layout design emphasize physical configuration of the layout rather than the degree of
service provided. 4 distinct styles have been developed over past 3 decades include;
1) Center service
2) Lobby check out or bull pen
3) Off-the-wall

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4) Right rear service, often refer as “self-selection”

1) Center service
this style features an elongated, two-sided wrapping counter and check out “island” located in or
near the center of the selling area of the pharmacy. Usually convenience goods such as tobacco,
candy and sometimes magazines and photo supplies are stocked in the island. The objective is to
align the major traffic-generating departments around the perimeter and then pull all of the traffic
through the checkout island in the center of the pharmacy.

2) Lobby check out

style This approach utilizes a square, clerk service check-out island near the front of the
pharmacy Space b/w front window and check-out is “LOBBY” Again tobacco, candy, photo
supplies , and men sundries are stocked in the island , while seasonal and promotional
merchandise are displayed in the lobby where the traffic is heavy . The check-out island is
supplemented by a short wrapping counter in the rear of the store in front of the prescription
department. The major traffic generating departments are located around the walls which display
counters or showcases placed in front of the wall shelves.

3) Off-the-wall style.
This style features open display of merchandise on the wall shelving without showcases or
counters in front of the wall shelves. The main wrapping counter, short or long , is placed across
the rear of the store in front of the prescription counter. One or two rows of gondolas are placed
in the center of the pharmacy. This style became popular for a time coz of the ease and low cost
of installing fixtures. Large super drug stores utilize a modification of this style.

4) Right-Rear service style. This style frequently is called self-selection style coz it
accommodates this concept so well. The concept permits self-service where desirable and thus
promotes efficiency and reduces costs. At the same time it permits personal clerk or professional
services as appropriate. The right-rear service style is well suited for most traditional pharmacies
especially those that approximate a 3:1 length to width configuration.
All the above mentioned styles of pharmacies can be either Grid layout, or free flow
GRID LAYOUT

All counters and fixtures are at right to one another so that merchandise is displayed in straight,
parallel lines. Grid layout can be either
Without aisles
With aisles

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FREE-FLOW LAYOUT
Many of the fixtures are irregularly shaped such as circles, arches, and triangles. Customers can
move in any direction and wander freely.

ALLOCATION OF SPACE
Store space is a scarce and costly commodity. Allocating more space for one particular line of
merchandise reduces the allocation for another. It is the task of pharmacy manager, to allocate
store space efficiently in order to attain the highest possible sales volume at the lowest possible
cost. Management can perform space allocation in one of the several ways, including
Industry averages by type of merchandise
The sales per square foot method

LOCATING DEPARTMENT
After allocating space to each department the pharmacy manager must decide on the locations
for the departments within the pharmacy. The prescription department and high-skill or specialty
departments should be located in the rear or toward the rear of the pharmacy. If the pharmacy has
a fountain, it should be placed in the rear of the pharmacy across from the main wrapping
counter and the prescription department. If the pharmacy has a surgical and orthopedic appliance
department, a special fitting room is must. A separate washroom for men and women should be
located near the fitting room. If pharmacy does not have a fountain, greeting cards and gift
department are the best choice to replace the fountain in the rear of the pharmacy. A
photographic department, if developed is another option. A special room located in part of the
stock room in the rear makes an ideal veterinary drug department. The cosmetic and toiletry
department is aligned with the non-prescription drug and prescription drug departments from
front to rear respectively, along the right or longest wall. Other departments can be used to fill
the remainder of the wall space opposite the cosmetic and drug side of the pharmacy.

ARRANGEMENT OF INDIVIDUAL PRODUCTS

The products can be arranged by Package size Color Brands Customer’s interest Price
Alphabetically According to companies who have supplied the drugs, or Combination of these.
The products with more demand and more profits are displayed at prominent place. The eye level
positions are more attractive as compared to the position at the bottom shelf.

PLANOGRAMS
“Planograms show in a detailed schematic plan the amount of space allocated to and
arrangement of each item within a department.”

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 To ensure proper shelf positions in all their outlets, pharmacy chains use planograms to control
the location of each department.

Characteristics of layout
 A successful store should keep a consumer interested and finally convert the consumer to
a customer.
 From the customers’ point of view, they would like the shopping process to be easy and
satisfying.
 They prefer a pleasant shopping environment where the aisles are wide, the view of the
merchandise is clear, the merchandise is easy to find and that there are sufficient items
such that customers won’t experience stock outs.
 The retailer should have effective merchandising and displays in order to increase the
satisfaction of Customers.
 To achieve this, several principles and characteristics of store layout design should be
considered.
 Utilization of floor space has an effect on potential customers.
 The size of the store is constrained by budget, store type, merchandise assortment and the
Volume of sales.
 The aisle structure should be well designed to facilitate shoppers browsing and checking
out the merchandise.
 The traffic flow density of the aisles should be balanced to provide a comfortable and
safe shopping environment.
 Providing customers with a logical layout of merchandise, such as grouping similar and
 Complementary products in distinct sections, insures customers can easily find what they
want.
 Overcrowded displays can confuse and depress customers, however half full shelves can
give the impression that the store is going out of business or the items are out of stock,
which can lower customer goodwill.
 To effectively display the product, fixtures including stands, shelves, tables, bins and
racks should be carefully chosen and organized, depending on the type of product sold
and the customer demand.
 Overall there are both qualitative and quantitative criteria for store layout design

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 REFERENCES

 Principles And Methods Of Pharmacy Management By, Harry A. Smith

 Drug store and business Management By, A.K Gupta
 Store Environment An Environmental psychology approach Journal of retailing Pharmaceutical
Management & Marketing By, Dr. Mahmoud Ahmad & Nadeem Irfan
 www. Google.com

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