Doubt over Woolies pharmacy roll-out

The group has yet to disclose the results of its pharmacy trial, despite announcing the opening of the first store almost two years ago. Woolworths was expected to open a dozen pharmacies within 12 months.

The group had opened two pharmacies, and was monitoring the results, Woolworths said on Friday.

A late runner in the pharmaceutical race, Woolworths opened a pharmacy at its Kloof Street store, Cape Town in mid 2007. A year later it opened another outlet in Athol Square, Johannesburg.

The pharmacies are a joint venture with Netcare, which obtains the pharmacy licences and is responsible for staffing and managing the dispensaries. Woolworths manages the rest of the health products on offer, such as vitamins and supplements. Netcare has extensive pharmacy business experience.

The first outlet had a slower than expected start, largely due to the regulatory uncertainty clouding the pharmacy sector. Netcare's marketing director, Tumi Nkosi, said in 2007 that the company hoped to have a dozen co-branded pharmacies in Woolworths stores in a year.

Netcare's group pharmacy director, Ingrid Davis, said last year that customer surveys from the Kloof Street venture had been “extremely positive”.

The Athol Square pharmacy saw an even stronger response on opening. Davis said last year that Woolworths and Netcare planned to launch a third pharmacy, in Rivonia, by year's end.

This would test the concept in a full-line Woolworths store selling food and clothes, and would enable the partners to gauge reaction among a different group of customers from those frequenting outlets that sold only food.

The pharmacies are in stores with extended hours, and enable customers to buy prescription medicines along with groceries.

Clicks, which was first-to market with in-store dispensaries, said last month that health, including its dispensary and beauty merchandise, continued to be major drivers of sales growth.

Source: Business Day

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