HRG Enhances Core Category Management Program to Improve Profitability in Independent Pharmacies

January 16, 2014By News

January 16, 2014 – Hamacher Resource Group (HRG) has enhanced some of the strategies and deliverables of its core monthly category management program, TEMPS®, with a focus on improving the front-end profitability of independent pharmacies. In addition to introducing two new combination planograms, the company is incorporating even more actionable information in the monthly materials. Examples include breaking down merchandising steps into increments of time so the associate implementing the program can make their efforts most effective in the time available, and highlighting the top-performing subcategories so these sub-sections of the department are sure to receive attention. The improvements to the TEMPS program will help independent pharmacies streamline their front-end to include the SKUs that perform best in this channel and provide higher profit margins.

HRG has been serving the independent pharmacy channel for over 30 years. With services ranging from category management and merchandising, to pricing, training, and comprehensive store assessments, the company’s broad and deep knowledge of independent pharmacy – including the supply chain that supports it – is one of its strongest areas of expertise.

“We review the TEMPS program annually and make modifications based on customer feedback and what we’ve learned and observed in the industry,” said Julie Bonnell, HRG director of operations and member of the owners group. “This year we proactively phone-surveyed our retailer, merchandiser, and wholesaler customers, and we used their input to make these more widespread adjustments. We believe the changes, when executed, can positively impact an independent pharmacy’s bottom line.”

HRG verified in research conducted in 2012 that pharmacists rely on planograms to help manage their front-of-store. Collaborating with the Healthcare Distribution Management Association (HDMA) and other partners, HRG researched the independent pharmacy market including interviewing shoppers, reviewing store POS data, and surveying pharmacists. When asked what services they utilize to manage their front-end, nearly one-third of the pharmacists answered “planograms.” The full report, "Independent Pharmacy Shoppers: Who, What, and Why?", can be viewed online.