Alliance Boots’ independent pharmacy network Alphega Pharmacy aims to enhance its 1,000-strong member network by offering services such as healthcare and diabetes check-ups alongside drug dispensing. Retail Week speaks to Europe managing director Caitlin Sorrell about its brand growth strategy.

At the Alphega Pharmacy conference last month the message was clear that you need your network of independent pharmacies to buy into Alliance Boots’ healthcare strategy. Why is this so important?

It’s about making sure we strengthen the loyalty with Alliance Healthcare.

The Alphega model is not a cookie cutter approach. [We want to ask our members] how can we help you be better?

What targets have you set the network in terms of increasing consumer awareness of the Alphega brand?

Some 60% of the UK pharmacy members are fully branded or almost fully branded and we want to get that to 80%.

What is your plan to build the network in the UK?

What we are looking at are the least compliant members. Why are they not compliant? What are they not implementing? And we are going to say either you do or we part company. It is a luxury we can afford now that we have reached 1,000 members. The ambition is to stay at 1,000 and recruit some more of the cream and lose some from the bottom. If we want the concept to be really strong we have to say to people thanks but…

What type of pharmacy do you look for?

We don’t want them to join for the buying discounts. We need them to understand they can implement services. We will hold your hand to make sure you’re ready and you can do it. And all that money you are losing on Government cutting dispensing margins you can make up in services.

Do many members leave the Alphega Network annually?

We do have some churn. Pharmacies get sold and pharmacists retire and people do leave the network sometimes and they leave because they are not using all the tools they have access to. But the churn rate is not a concern.

What are the benefits of joining the Alphega network for independent pharmacies?

Too many pharmacists are checking everything line by line, negotiating with manufacturers 20 times a day. Of course they’re not going to have time [to offer services].

Although, we’re not always the cheapest on every single line but across a basket of services we will be cheaper. We will free up your time so you don’t have to chase those people. We can help with tools and delegate the work. The pharmacies must develop a competency and confidence in the service. And we offer business mentors who are well-equipped to build that confidence.

What other services are you looking at implementing in the UK Alphega Pharmacy network?

There are two services we are looking at which we already offer outside the UK; mole screening – where you take a picture of the mole and send it to a dermatologist; and paternity testing. Which I’m not sure about. Two people going through that trauma is a lot for the pharmacist to handle.

Do you plan to take the Alphega concept to other parts of the world, maybe even the US?

The Alphega Pharmacy concept is flexible enough to go to different areas wherever there are independents.

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