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Is an establishment for selling of the product(or service) in individual unit to the final consumer for consumption. Retailers provide service to the consumer on one hand(primary retail role), and on the other hand, serve producers and wholesalers(secondary retail role).


The pharmacist who has an aptitude for business, financially sound and ready to invest money in business can open a realistic/wholesale drug store. The success of a drug store depends on a number of factors some of which are ; its location and proper layout design sound financial management qualified and experienced staff honesty, sincerity and hard work behaviour among staff members and with customers

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Considerations For Opening A Retail Pharmacy

Whenever a person decides to opens a drug store the most important conciderations are;


whether to establish a new or buy an established retail pharmacy

Merits of buying an established pharmacy include 1. may have favourable price 2. already has demonstrated the value of its location and thus ,saves time and efforts of finding a right place 3. pharmacys ability to attract customer can be evaluated/predicted and com pared with other existing pharmacies. 4. reduced uncertainaities, since various risks are exposed
Demerits of buying an established pharmacy; 1. price may be too high 2. the inventory may be near to expiry 3. reputation or image of the present owner may be poor and will take time to establish a good repute 4. physical facilities and fixtures may not be according to the specifications, or outdated, need repairs or replacement

LAUNCHING A NEW PHARMACY Launch of a new pharmacy require a comprihensive plan for a successful business. The planning is needed in various areas including

selection of retail category, financial sources , location decision, physical facilities , type of license, staffing, and spectrum of activities to be offered.
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After a decision is made to launch a new pharmacy,the following considerations are made SELECTION OF RETAIL CATEGORY/TYPE OF COMMUNITY PHARMACY SELECTION OF SITE For selection of site following factors must be considered Availability of finances Density of population Buying habits of the public Number of doctors in the surrounding area Existence of hospital Number of drug stores existing in the area Business locality Flow of traffic , in rural areas or small town


The two options for location are 1. free standing location 2. shopping centers


Legal Requirements To Start A Drug Store 1.Minimum Qualifications A person who is interested to start a retailsale drug store must be Registered Pharmacist With State Pharmacy Council A person who does not possess degree or diploma in pharmacy can also open a drug store but the licence for the retailsale of drugs will only be granted to a registered pharmacist employed for the purpose 2. Minimum space area of 10 square meters 3.Application for the grant of licence


The location of pharmacy , its management and sufficient capital are major factors contributing to a pharmacys success. A part from these another major factor is PHYSICAL ENVIRONMENT . Physical Characteristics of a pharmacy are used to develop an image and draw customers , consist of;

(1) DESIGN a. the exterior design b. the interior design (2) STORE LAYOUT (3) MERCHANDISE PRESENTATION



a. exterior design
The uniqueness of the store front and the creative use of entrance, display windows, and distinctive outdoor signs can help creat a favourable pharmacy image

b). interior design

interior elements that serve as attention attractors include fixtures lightining flooring colors scents and sounds temperature width of aisles cleanliness modernization merchandise assortment display of prices ,and personnel


STORE LAYOUT Involves Planning the internal arrangement of departments Allocating the amount of space for each department Arrangement of drugs in each department

Before a pharmacist under takes to design a layout or modernize the pharmacy He should consider the; n Objectives of the various designs n The type of community pharmacy n Types of layout design n Style of layout design

OBJECTIVES OF LAYOUT DESIGN The major objective in the design of exterior of pharmacy is; To attract more patrons into the pharmacy The overall objective of interior layout design is To increase the amount of the total purchases of each person who enters the Pharmacy In addition to the above, the six specific objectives are To enhance the general appearance of the pharmacy and to project a professional image To control payroll expenses through convenience and efficiency of the layout To improve patrons satisfaction and convenience To maximize the utilization of space To disperse and control the traffic pattern within the pharmacy, and To provide surveillance and reduce pilferage

Legal Requirements (drug Act 1976 and Punjab Drug Rules 2007)
The covered area of the premises is not less than 140 sq ft with minimum breadth of o8 ft in front and height of 08 ft. In case of medical store 96 sq ft with minimum breadth of 08 ft in front and height of 08 ft. The premises has proper and adequate facility for storage of drugs and for their protection from direct sunlight, dust or dirt, including refrigeration facility. In case of a pharmacy, the person shall display the word Pharmacy in white writing on a green colored signboard having minimum length of 5 ft and width of 2.5 ft. In case of a medical store, the person shall display the word Medical store in white writing on a blue colored signboard having minimum length of 5 ft and width of 2.5 ft.


Before transforming the idea of retail pharmacy to a real business, the owner must consider the form of retail to be adopted. There are four major types of community pharmacies ;

Pharmaceutical center Prescription-oriented pharmacies Traditional pharmacies The super drug store


designed and developed by McKesson & Robbins and American Pharmaceutical Association, -- It is similar to the prescription-oriented pharmacy, --The design and layout of this center is not so critical as with other types coz no merchandise of any kind is displayed. --The inventory is confined to legend and non legend medication and few convenient goods. --The dcor ,the atmosphere , and the uncluttered floor space are the hallmarks of the pharmaceutical center

-- The pharmaceutical center,


--This type of pharmacy usually occupies 1,000 to 2,000 square feet --and is so designed that the patrons will have a comfortable waiting area near the prescription department --health related items, including drugs, home health care appliances and supplies, and prescription accessories, are displayed near its vicinity --the pharmacy may have separate room for fitting trusses and other orthopedic and surgical appliances. --Cosmetics, gifts and a limited number of other items are displayed in the other areas of the pharmacy

--The traditional or conventional pharmacy usually occupies between 2,000 and 5,000 square feet . --the major objective of the layout design for this type of pharmacy is to disperse the customers and expose them to all areas in the pharmacy -- These pharmacies also should have a pleasing appearance, project a professional atmosphere, be convenient for both consumers and employees, and provide the opportunity for maximum sales at minimum expense --Although traditional pharmacies vary in design, it is generally agreed that the best traffic flow can be achieved with 3:1 lengthto-width ratio

THE SUPPER DRUG STORE -- The supper drug store

occupies more than 5,000 square feet , --generally 10,000 square feet or more, with the design approximating a square. --The basic objective in a supper drug storeis trffic control rather than traffic dispersal, which is achieved by the merchandising techniques used. --Many lines of goods are sold in this type of drugstore, and the layout design is usually of the self-service type to facilitate traffic control and to provide maximum sales at minimum cost.


These major types of retail pharmacies may be Individual pharmacy store Or chain store


An independent retail pharmacy is a setup with a single retail store without branches or any contractual aggreement with others.independent pharmacy exists at a single location. However , it may be selling all drug categories including or excluding narcotics and other controlled drugs. ADV. Requires less investment No profit sharing Freedom in control and from restrictions DISADV The employee will remain an emploee leading to less interest Unable to attract or retain a qualified person


Chain pharmacy stores are branched stores existing at various locations but operating under a common ownership. Chain pharmacy concept was first initiated a decade ago by FARMACIA, a subsidiary of FEROZESONS, Nowshehra. This concept is gainning success and there is an increasing trend, particularly in big cities such as Karachi , Lahore , and Rwalpindi, Islamabad. Crunnently there are various chain stores at city level including FAZAL DINS PHARMA PLUS SHAZOOS ZAKA PHARMACY PHARMAX CLINIXPLUS,etc ADV. More credibility Wide geographical coverage through many chains Economical buying due to bulk purchase making more profit Able to attract qualified persones because of having job structure Efficient as can afford use of more employees, better service, sales training , use of computer,etc. Promotional activities can be initiated even with more investment


As far as ownership is concerned community pharmacy is with either Sole proprietorship Partnership


Historic types of service-oriented layout design 3 Types 1) clerk or personal service 2) self-selection 3) self-service

each is designed to achieve the objectives of three basic types of pharmacies ,i.e professional,traditional,and drug super store,respectively

1) Clerk service
The clerk service layout is the old traditional design used in most pharmacies before the trend towards self-service and mass merchendising. It consist primarily of complete clerk service with only a small part of the merchandise exposed for patrons to handle. This is one of the compulsion for prescription products where there is no selection of the consumer at retail level. Thus, in this setup there is no provision of self-service or self-selection . The pharmacy personnels dominantly provide services for supply of drugs to the consumers,it facilitates maximum interchange between pharmacy personnel and patrons. The modern example of this layout design is the pharmaceutical center in which no merchandise is on display. This type of layout design exist for prescription and selected nonprescription drugs, surgical and orthopedic appliances and supplies.


Self selection

In an attemt to provide adequate personal service in a more efficient manner, and thus be more competitive with the larger super drug stores, many independent pharmacists now use the self selection layout design. This type of layout design dictates that clerk service be maintained at all service-oriented departments,such as cosmetics, photo supplies , prescription, and selected non prescription drugs, surgical and orthopedic appliances and supplies ,and veterinary departments. Much of other merchandise, however , is displayed in a manner that the patrons may see, handle, and select themselves but prescription item has no possibility of self selection. But it could be for the nutritional supplements, cosmetics, contraceptives and other OTC health related items. A retail setup cannot run totally on self-selection bases on account of availability of prescription drugs. This layout is most frequently found in the modern conventional



Self service

The term self service is restricted for layout utilizing a minimum of clerk service and exposes the maximum of customers to handle. It is not possible to have 100 % self service in pharmacy because of the prescription drugs and item. This type of layout is most often used in super drug stores but for the non-drug items and commodities such as cosmetics and nutritional supplements.


Styles of layout design emphasize physical configuration of the layout rather than the degree of service provided . 4 distinct styles have been developed over past 3 decades include; 1) Center service 2) Lobby check out or bull pen 3) Off-the-wall 4) Right rear service, often refer as self-selection


Center service

This style features an elongated , two-sided wrapping counter and check out island located in or near the center of the selling area of the pharmacy. Usually convenience goods such as tobacco, candy and some times magazines and photosupplies are stocked in the island . the objective is to align the major traffic-generating departments around the perimeter and then pull all of the traffic through the check out island in the center of the pharmacy.


Lobby check out style

This approach utilizes a square, clerk service check-out island near the front of the pharmacy Space b/w front window and check-out is LOBBY Again tobacco, candy, photo supplies , and men sundries are stocked in the island , while seasonal and promotional merchandise are displayed in the lobby where the traffic is heavy . the check-out island is supplemented by a short wrapping counter in the rear of the store in front of the prescription department. The major traffic generatting departments are located around the walls which display counters or showcases placed in front of the wall shelves.


Off-the-wall style.

This style features open display of merchandise on the wall shelving without showcases or counters in front of the wall shelves. The main wrapping counter , short or long , is placed across the rear of the store in front of the prescription counter. One or two rows of gondolas are placed in the center of the pharmacy. This style became popular for a time coz of the ease and low cost of installing fixtures. Large super drug stores utilize a modification of this style.

1) Right-Rear service style.

This style frequently is called self-selection style coz it accommodates this concept so well. The concept permits selfservice where desirable and thus promotes efficiency and reduces costs. At the same time it permits personal clerk or professional services as appropriate. The right-rear service style is wel suited for most traditional pharmacies especially those that approximate a 3:1 length to width configuration..

All the above mentioned styles of pharmacies can be either Grid layout, or Free flow GRID LAYOUT All counters and fixtures are at right to one another so that merchendise is displayed in straight, parallel lines. Grid layout can be either With out aisles, or

With aisels

FREE-FLOW LAYOUT Many of the fixtures are irregularly shaped such as circles, arches, and triangles. Coustmers can move in any direction and wander freely.

Store space is a scarce and costly commodity. Allocating more space for one particular line of merchandise reduces the allocation for another. It is the task of pharmacy manager , to allocate store space efficiently in order to attain the highest possible sales volume at the lowest possible cost.

Management can perform space allocation in one of the sevsral ways, including Industry averages by type of merchandise The sales per square foot method

After allocating space to each department the pharmacy manager must decide on the locations for the departments within the pharmacy.
--- the prescription department and high-skill or speciality departments should be located in the rear or toward the rear of the pharmacy. --- if the pharmacy has a fountain , it should be placed in the rear of the pharmacy across from the main wrapping counter and the prescription department. ---if the pharmacy has a surgical and orthopedic appliance department, a special fitting room is must. --- a separate washroom for men and women should be located near the fitting room --- if pharmacy does not have a fountain , greeting cards and gift department are the best choice to replace the fountain in the rear of the pharmacy. --- a photographic department , if developed is another option --- a special room located in part of the stock room in the rear makes an ideal veterinary drug department --- the cosmetic and toiletry department is aligned with the non-prescription drug and prescription drug departments from front to rear respectively, along the right or longest wall --- other departments can be used to fill the remainder of the wall space opposite the cosmetic and drug side of the pharmacy.

ARRANGEMENT OF INDIVIDUAL PRODUCTS The roducts can be arranged by Package size Color Brands Customers intrest Price Alphabatically According to companies who have supplied the drugs,or Combinationp of these The products with more demand and more profits are displayed at prominent place. The eye level positions are more attractive as compared to the position at the bottom shelf.


Planograms show in a detailed schematic plan the amount of space allocated to and arrangement of each item within a department.
To ensure proper shelf positions in all their outlets, pharmacy chains use planograms to control the location of each department.

REFERENCES Principles And Methods Of Pharmacy Management By, Harry A. Smith Drug store and business Management By, A.K Gupta Store Evironment An Environmental psycology approach Journal of retailing Pharmaceutical Management & Marketing By, Dr. Mahmood Ahmad & Nadeem Irfan www. Google.com