Who doesn’t want fast, convenient, inexpensive healthcare?
So what a great idea in-store health clinics are. Big benefit to consumers/patients. Perfect sales alignment for retailers between their pharmacy counters and OTC aisles.
The number of clinics boomed in the last three years from 125 clinics to 963.
In the cosmetic business, you count distribution by how many doors you are in. The more doors, the more sales potential, filling the rack and offering access.
Think about that for health clinics. More access for sore throats, colds, rashes, blood pressure monitoring, diabetes supplies. With great convenience.
But now growth is slowing. The Wall Street Journal reports that Shopko, Meijer, and Wal-Mart and Cardinal Health’s Medicine Shoppe is actually closing units. Maybe as much as 70 clinics. And CVS is talking about scaling back their expansion plans.
Why?
Oh, it something as simple as estimating the break-even on your investment.
According to Tom Charland, for VP for Strategy at Minute Clinic, “The big mistake was for people to think they could break-even in six months. People are learning this is an 18-24-month process to get to break-even.”
Now how many product launches do you know of that break-even in six months?
Now think of how many capital-based retail fixture-based store-based assets break-even in six months?
Maybe those hard plastic theft prevention boxes that protect Gillette’s Fusion razor blades from thieves with wide and deep-sleeved coats, but not much else.
Now reality is settling in. The financial teams are making their lists and checking them twice trying to figure out what clinics have been naughty and which have been nice.
Business reality and metrics here are necessary and good.
However, they will not ultimately slow down the need for people to have access to fast and easy health care.
Compare these clinics to the current distribution of general medical practice:
- Call for the appointment
- Set in the waiting room for thirty minutes
- Speak to the doctor for 20 minutes
- Drive to the drug store to get the prescription filled
- Wait for the prescription.
One stop health care for minor ailments is a need that is here and will continue to grow.
The challenge for the retailers is to get their economics right and for drug and consumer healthcare manufacturers to get their targeting and merchandising right to help their retail partners succeed.
The patient is waiting.
1 comment:
I agree with you that there is a real need for for quick easy access to healthcare for minor ailments.
Within the next few years with a new administration, there is a high likelihood of Universal Healthcare becoming a reality. One thing that is not talked about much is that in Massachusetts, one result of Universal Healthcare has been the over burdening of the primary care system. In Massachusetts, patients wait 18 months for a schedules physical as well as long waits for care of minor ailments. In the future one way to address this need would be for one stop healthcare centers that take health insurance.
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