ADVANTAGE Group banner, Chemist Discount Centre (CDC) is rolling out a new long-term pricing strategy, which is forecast to deliver margin improvement of 0.5% in non-dispensary revenue.
Announcing the new strategy, Advantage Group Chief Operating Officer, Hugo Ortiz, said the updated pricing rationale was based on four category roles - buying and marketing strategy, inventory and pricing management, pharmacy execution and customer interaction, and pricing.
"The CDC pricing strategy is able to be implemented with confidence through sophisticated data analytics and systems," he said.
"CDC pharmacies utilise a proprietary inventory management system, Buy-It-Right which powers its order automation, maintains consistent and accurate stock files, and provides comprehensive reporting.
"Combined, these allow for managed pricing.
"This ensures that we can implement our own unique competitive pricing strategy as a true discount pharmacy, without detrimental effects on our growth."
The company reported franchise numbers increased 40% in the last financial year and projected to continue growing at a rate of around 30% year-on-year, with two new stores set to open in Wallan and Kilmore, Victoria, later this month.
Ortiz said the growth rates reflected the holistic brand offering and robust franchise solution focused on building trust with consumers by providing access to affordable products and services from CDC as a health destination.
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