While dispensing accounted for 80% of all transactions, McKenzie's wanted to boost profit margin in their front of shop. With our Retail Insights Solution, they achieved 30% front of shop profit growth and a steady 5% YOY sales growth with range control and up selling.
Now for the detail...
McKenzie's knew their front of shop had additional potential for their business, but they were unable to identify key areas to focus on for improvement. They knew retail sales were falling, due to the opening of multiple pound stores, and they needed to act quickly to protect their market share.
Through collating and analysing all their data sources, we were able to build actionable reports for McKenzie's to see what stock was selling and what wasn’t. In minutes our solution enabled them to see where 80% of their profits were coming from.
As a result, McKenzie's enhanced their stock control and ordering, ensuring they were spending on items with the best forecast for sales. They implemented a strict buying policy, leaving buyers to choose from a range of only the top 800 products.
With less stock, they experienced 5% steady growth with YOY sales and saw their profit margin jump 30% from front of shop stock.
"The retail side of our business is so much smaller than our dispensing, so we need to be very efficient to make it work for us. As pharmacists we tend to stick to what we are used to, but this usually ends up in too much stock and cluttered shops. RWA Pharmacy introduced us to retail best practices and backed this up with live connections to our stock and transactions which resulted in a far more profitable retail business which is now a significant part of our overall results."
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