ACP Pharma to build franchise pharmacy network

2010-01-27

ACP Pharma, one of the largest Polish drug distributors owned by Mediq Group, will in 2010 start the development of a franchise network of pharmacies under the Mediq brand, with an ultimate target of 200 outlets, Mikolaj Nalecz, head of business development at Mediq Polska, has revealed in an interview with Dziennik Gazeta Prawna.
Initially the roll-out will be limited to a pilot scheme: by the end of June, the company plans to sign at least three franchise outlets, rising to 10 by the end of 2010. But the pace of network expansion is to accelerate significantly from 2011 onwards. Each pharmacy will operate under one of four possible formats: residential-area pharmacy, street pharmacy, hospital pharmacy and mall pharmacy. The company estimates opening costs at between PLN 40,000 to PLN 90,000 (€9,000-22,100).
In the view of Michal Wisniewski of Profit System, a franchise consultancy, quoted by the newspaper, the franchise model offers great potential for drug retailers. It may provide an appealing alternative to consolidation through loyalty schemes.
One drug distributor that is already using this model on a major scale is Polska Grupa Farmaceutyczna (PGF), which according to IMS Health had nearly 140 franchise pharmacies under the Dbam o Zdrowie brand at the end of November 2009.
At the end of Q3 2009 ACP Pharma operated 192 pharmacies in Poland.