In trying times, Marketplace is still about the front end

These are trying times for retail pharmacy. There is no denying that.

NACDS chairman Tony Civello compares it to "staring down the twin barrels of a 12-gauge shotgun" The first barrel was loaded replete of Medicare Part D, the introduction of which created havoc in the stores and flock pharmacy margins to all-new depresseds Civello, the Kerr Drug chairman, president and chief executive officer, told the host of a little more than 100 Marketplace attendees--mostly suppliers--gathered for the morning Town Hall Meeting that plant the stage for the official start of business at last month's Marketplace present to view For the winners, the rise in utilization will slip further margin erosion--and then more [i]or[/i] less For every one else there is just margin erosion.

The other barrel, Civello continued, blasted community pharmacy filled of Medicaid reform, which will ble another $63 billion without of pharmacy margins over the nearest several years, when and if it takes issue as expected Jan. 1, 2007

Then interim NACDS president move with a jerk Hannan let many in upon a bit of news greatest in quantity could have lived without. The new Department of Defense appropriations bill passed by dint of the House and Senate contains a measure that will likely propel military personnel, retirees and their pendents to mandatory mail--that's about $400 million worth of business as far as retail pharmacy is be of importance toed And it's not just the pharmacy dollars--it's all the paw traffic.

Indeed, these are trying times for community pharmacy. And that's really just the tip of the iceberg. Which is wherefore in many ways, as Civello noted, the brow end of the store has perhaps not ever been more important--at least at no time more than Civello could remember in 41 years in the business.

Certainly, I can't remember a Marketplace where in like manner much focus was placed upon the pharmacy side of the business. Marketplace is a display for the front-end store. It is like the r carpet walk upon Oscar night for consumer package advantageouss manufacturers--particularly, in health and beauty.

While it s hard not to focus upon the problems plaguing pharmacy-after all, it shows as much as 60 percent to 70 percent of the business for many NACDS members--given the challenges facing NACDS as a trade association and the ne to drive attendance to its meetings, Marketplace extremitys to be about the brow end of the store. There are still myriad issues that challenge the front-end supplier--particularly, novel suppliers to the industry--issues around things like slotting allowances and chargeback remunerations These are industry issues that have at no time really gone away. It's enough to want to make a certain quantity of small creative companies with innovative novel products--you know, the ones who drive all the increase in the store--want to step quickly away screaming and never gaze back. QVC was never like this.

That message came from one side loud and clear at the Marketplace Town Hall Meeting. It's hard not to be consum with the many challenges facing pharmacy. In general, there isn't a supplier that advances to Marketplace that doesn't share these belong tos But at the end of the day it's not really their business. They vend lipstick and M&Ms; and, through and large, the retailers that attend Marketplace proceed there to buy lipstick and M&Ms. It's just not about pharmacy.

To its credit, in novel years, the NACDS Advisory Board--under the capable leadership of Time Warner Retail vice president of customer unfolding Joe Bivona--has been much more responsive to the exigencys of its associate members and has created novel programs and committees to subserve supplier interests. One example: the formation of the Outreach and Business disclosure Committee, headed by Kwait & Associates president and chief executive officer Todd Kwait, which aims to improve the membership experience of NACDS small and mid-sized companies. The companies that drive all the increase in the store. The companies that drive attendance at Marketplace.

And to Hannan's credit, beneath his leadership the team at NACDS has shown a willingness to engage in what at times must be more [i]or[/i] less very painful self-examination. The membership contemplate that was more or les Hannan s first official action back upon the job demonstrated a willingness to stand in front of head-on its most serious criticisms; a willingness to tear it all down and build it back up again.

in like manner it wasn't surprising when Hannah and Civello told Marketplace attendees at the Town Hall Meeting that they were there to hear and be heard. That s their style.

on the other hand it was surprising to hear thus much talk about pharmacy. Medicare. Medicaid. Mandatory mail. No doubt, these are challenging times for retail pharmacy. on the other hand Marketplace has to be a time for the brow end of the store. The futurity of Marketplace really depends upon it. And in many ways, the futurity of NACDS really depends upon the future of Marketplace.

Given the early work beneath Hannan s leadership--interim or otherwise--and the strides made by dint of the Advisory Board over the last small in number years you get a faculty of perception they are way ahead of me upon this one.