In recent years, the rise of online pharmacies has dramatically transformed the landscape of the pharmacy industry. With the convenience of shopping from home, an expanding digital presence, and the ability to have pharmacy products delivered straight to your door, online pharmacies have quickly become a go-to option for many people. But how is this trend affecting traditional brick-and-mortar pharmacies, particularly those on the high street? And what does this mean for the future of business models in the pharmacy sector?
The Growing Popularity of Online Pharmacies
Several factors contribute to the expanding market of online pharmacies, with convenience being a primary driver. With a few clicks, consumers can access a wide range of pharmacy products, all without leaving their homes. This has particularly resonated with busy individuals who may not have the time or inclination to visit a traditional pharmacy.
Additionally, the rise of telepharmacy and online consultations has fueled the growth of online pharmacies. As more people turn to digital healthcare services, the demand for online pharmacies has surged. Many of these platforms offer the added benefit of discreet packaging, which appeals to those who might feel uncomfortable purchasing certain products in person.
Changing the Landscape for Traditional Pharmacies
The rise of online pharmacies is undoubtedly a challenge for traditional high street pharmacies. With more consumers opting to order online, foot traffic to physical stores has decreased. Pharmacies that once relied on in-person consultations and the convenience of being within walking distance of their customers now face the challenge of competing with digital-first competitors.
Despite the closure of nearly 800 pharmacies since 2021 (according to BBC), many high street pharmacies are evolving to meet the digital challenge by offering online services of their own. These efforts are allowing high street pharmacies to remain competitive in a rapidly changing environment.
One of the key advantages that physical pharmacies still have is the personalised customer service they can provide. For many people, their local pharmacy is a trusted source of advice and care. Pharmacists can offer face-to-face consultations, give recommendations for treatments, and provide a level of care that an online platform simply can’t replicate. Still, the pressure is mounting for high street pharmacies to innovate and find ways to combine the best aspects of both physical and online services.
The Future of Pharmacy Business Models
Looking ahead, the future of the pharmacy business model seems to lie in a hybrid approach that merges the strengths of online and offline pharmacies. The shift towards online services is unlikely to slow down, and traditional pharmacies that want to remain relevant will need to adapt to this new reality.
Some possible future trends include:
- Integrated Digital Health Solutions: The integration of online consultations and product management will continue to shape the future. Pharmacies may act as a hub where both digital and in-person services are offered seamlessly. The NHS App is a key driver for this integration, allowing patients to order repeat prescriptions, book appointments, and access health records. Pharmacies that can effectively integrate with the NHS App and offer complementary digital services will be well-positioned. For example, Boots has rolled out prescription tracking within the NHS app, allowing patients to monitor the status of their prescriptions.
- Personalised Services: A personalised touch will still be key to maintaining customer loyalty. For example, online pharmacies could offer customised health advice or subscription-based services for chronic conditions. High street pharmacies could adopt similar personalised approaches to maintain their competitive edge. For example, if a customer with diabetes uses an online pharmacy, the platform tracks their medication orders, blood sugar readings (if shared), and lifestyle data. The pharmacy then offers personalised medication reminders, tailored nutritional advice from a registered dietitian and subscription boxes with diabetes-friendly snacks and supplies.
- Expanded E-commerce and Home Delivery Options: Even traditional pharmacies will need to prioritise online ordering systems, fast delivery, and easy access to health information. For customers who prefer to shop in-store, offering click-and-collect services could help bridge the gap. LUDA Partners is at the forefront of helping pharmacies to navigate this digital transformation, and their partnership with Just Eat offers an easy solution for high street pharmacies looking to sell online. Without the burden of fixed costs or the need for technical knowledge, this collaboration helps pharmacies sell their pharmacy products on the app and therefore increase their sales, grow their customer base (by gaining access to Just Eat´s user base of 19 million new consumers) and become the preferred choice for local online orders.
- Partnerships and Collaborations: Expect to see more partnerships between high street pharmacies and digital health platforms. Combining resources could help physical stores gain access to the technology and online infrastructure they need to stay competitive.
Conclusion
To summarize, the rise of online pharmacies is reshaping the way consumers access healthcare products, presenting both challenges and opportunities for traditional high street pharmacies. While the convenience of online shopping is undeniable, physical pharmacies still have a key role to play in providing personalised care. The future likely lies in a hybrid model where online and offline services complement one another, ensuring that consumers have a choice in how they manage their health. With LUDA Partners, pharmacies can seamlessly transition into the digital world, adapting to this shift and finding innovative ways to serve customers, without the burden of fixed costs or the need for technical knowledge. Only those who adapt to this shift and find innovative ways to serve customers will thrive in an increasingly digital world.