Page 23 - RP-MAY-2021

EXCLUSIVE INTERVIEW NEWS IN FOCUS 19 Feras Karem CEO, PHARMACY 4 LESS The discount pharmacy franchise brand’s founder shares with Retail Pharmacy his plans for 2021, which include a retail pricing and cost reduction strategy aimed at delivering increased gross profit margin for its franchises. Please tell us about yourself and your experience in pharmacy and the Pharmacy 4 Less group. I started in the community pharmacy industry space at just 15, working as a pharmacy assistant in my older brother’s pharmacy, leading me to study Pharmacy at the University of Sydney. I have owned pharmacies of various sizes and business models and, with my brother, embarked on a journey to help other pharmacists in 2007 by offering franchise pharmacy services to pharmacies no matter their size, demographic, or competitive landscape. Today, the Pharmacy 4 Less group consists of 115 pharmacies nationally and is the fastest growing discount pharmacy franchise brand. I believe if you aren’t growing, you’re shrinking. That applies to my businesses and my personal growth. I’ve never been a spectator, so it was important that in addition to my community pharmacy work that I contribute to my industry and profession. In 2014 I was elected to the NSW Branch of the Pharmacy Guild of Australia and later held the position of senior vice president and VP of finance. To expand my knowledge and management approach I completed my Master of Business Administration degree in 2017 at the Australian Graduate School of Management (UNSW). What has been the impact of Covid-19? The impact of Covid-19 has been a roller-coaster ride for all and has challenged each of the pharmacies in our network. While every pharmacy experienced a significant spike in sales during March 2020 due to panic buying and sales of masks and hand sanitisers, the subsequent months of sales decline have meant that all pharmacies have been impacted by Covid-19. During Covid-19, community pharmacies in strip shopping settings have fared better than others. Pharmacies located in shopping centres were significantly impacted by Covid-19 as the usually busy centres were empty and often these pharmacies have a high rent exposure. The most impacted pharmacies were in CBD locations. With most organisations moving to work from home, the busy streets of the CBD have been abandoned. The biggest challenge with shopping centre and CBD locations is that these once high- foot-traffic locations which attracted high rentals are now deserted. What changes in business focus have been required? In 2021 we’ll focus on business efficiency, operational expense reduction, introduction of additional products and services to grow sales as well as growing our network nationally to achieve greater economies of scale. On the back of a deep analysis and time-in-motion study, we’ll be looking to supply chain efficiency and management operations as a source of improving the way we work. In this challenging environment around reduced sales and revenue, operational efficiency and also operational cost reduction became a focus area for the business. We’ll also look to continue to grow our national presence via our franchise model. During times of challenge, pharmacist proprietors will also be looking for their options on how to meet the challenges of this economic environment, and franchising may be a suitable option for these pharmacists to meet the challenges faced. In 2021 our marketing focus will shift from print catalogue and lean towards greater digital engagement with consumer targeting and highly relevant content. RETAIL PHARMACY • MAY 2021