TORONTO — Today, the Canadian over-the-counter and prescription drug business has grown to well over $55 billion (Canadian) and is heavily regulated. This sector has also benefited from the fact that pharmaceuticals currently comprise the second-largest health expenditure category in the country.

The retail market offers a wide range of prescription and O-T-C medications, health and beauty items, toiletries and consumable goods and is led by companies such as Shoppers Drug Mart (SDM), McKesson Canada, Metro and Pharmasave. Other chains include Walmart Canada, Sobeys, PharmaChoice and London Drugs.

Neighbourhood Pharmacies

The Neighbourhood Pharmacy Association of Canada (Neighbourhood Pharmacies) represents the full range of pharmacies in Canada, including chain, banner, long-term care and specialty pharmacies, as well as grocery chains and mass merchandisers with pharmacies. Neighbourhood Pharmacies chief executive officer Sandra Hanna noted that “Canadian pharmacies are on the front lines of the health care system in virtually every community across the country. Pharmacies play a vital role in creating capacity in public health and primary care and are the first and most frequent point of contact many Canadians have with the health care system.”

She said that Neighbourhood Pharmacies advocates for pharmacies’ role in caring for Canadians, both behind and in front of the counter, and aims to advance health care for Canadians by leveraging close to 11,000 pharmacies conveniently located in communities throughout the country. Of these 11,000, 84% are a traditional drug store format, 15% are a pharmacy inside another retail outlet (e.g., grocery, mass merchandiser), and 1% are nonretail pharmacies. About 35% of Canadian pharmacies are owned by a chain, 45% are part of a banner group, and the remaining 20% are independent.

Pharmacy’s economic footprint in Canada is substantial. The Conference Board of Canada indicates the total economic impact of the pharmacy sector is $16.1 billion. The sector directly employs an estimated 163,400 people and generates $5.8 billion in labor income. In the preceding 12 months, Canadian pharmacies dispensed 752 million prescriptions, with a value of $25 billion.

Hanna said that during the pandemic, community pharmacies are managing an unprecedented volume of interactions with members of the public where access to other health care providers is limited. She added that pharmacies have remained open to care for Canadians and to support the health system at a time of need, despite being at high risk of infection as immediate frontline health care providers.

“Neighbourhood Pharmacies is proud of the tireless work of our members, who are stepping up in critical ways to ensure patients can access the products and services they need without interruption,” noted Hanna. “Pharmacies are part of the backbone of public health and primary care in Canada, and will continue to be instrumental to the delivery of health services that are accessible, highly trusted and community based,” she concluded.

Shoppers Drug Mart

The leading chain in Canada with over 1,330 stores is Toronto-based SDM, which is owned by Loblaw Cos. The retailer has been utilizing technology to help combat COVID-19. SDM and Canada’s leading virtual care provider, Maple, have launched in-store virtual care across British Columbia locations. Online doctor visits at SDM’s pharmacies are covered by British Columbia’s Medical Services Plan, just like in-person appointments.

The virtual care service is intended to support British Columbians who may not have access to a family doctor. It will also alleviate pressure on overburdened emergency rooms, hospitals and walk-in clinics, giving patients a way to safely and conveniently access care during their day-to-day routines. As of today, in-store virtual care is accessible in 12 stores across British Columbia and will expand to Shoppers Drug Mart locations across the province by August 4.

“Health is top of mind for everyone, particularly now, and this new service will help British Columbians get the medical care they need, when they need it,” said SDM president Jeff Leger.

The retailer has enhanced the beauty shopping experience with its 435-plus Beauty Boutiques, which carry prestige brands along with mass cosmetics, derm products and fragrances. But all of the chain’s 1,330-plus stores sell beauty products anchored on beauty advisors who have built credibility through personal service and unbiased recommendations. “So beauty is a huge part of our front-shop business, and there’s a lot of innovation, a lot of work there to stay relevant to changing consumer behavior,” said Leger. “Beauty customers are finding more and more inspiration from social media and influencers, which leads to the importance of marrying e-commerce and ­brick-and-mortar.”

The retailer has taken beauty even further with the debut of two Beauty Clinics in Ontario that provide medical aesthetic services (cosmetic derm) from nurse practitioners. These include PRP, essentially the plasma microneedling microdermabrasion process, along with advanced chemical treatments, and laser and injection services.

While the clinics are still relatively new, reaction has been highly favorable, Leger said.

SDM’s success across the beauty category puts it ahead of every other retailer in Canada, including Sephora, and leaves it unfazed by the planned entry of Ulta Beauty Inc. “They’re a very good retailer,” Leger said. “But we’ve faced really good ­retailers before.”

In the O-T-C arena the chain continues to see market share gains, even in heavily promoted categories. Leger attributes that to the stores’ convenient locations and hours. “That continues to be crucial,” he ­commented.

While SDM has always had a meaningful grocery business, since being acquired by Loblaw it has been able to expand its fresh food offering, “and customers love it,” he said. Nearly 120 stores now have fresh food, including meat, fresh vegetables and meal kits, meaning “you can eat now or eat later.” About 35% of the transactions in those stores have fresh food, “so it’s actually resonating really well when you have the right location, which is often urban,” Leger noted.

Looking at alternative channels, the chain is offering delivery of Web orders with Instacart, and the results have been positive.

“We’re in this interesting world,” Leger commented. “You have this ability to get really convenient access to things, which is really great from an individual and a family perspective. Retailing is shifting quickly. So we’re testing a lot of these initiatives, trying to figure it all out.”

Metro

Metro operates some 650 drug stores, primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners. Through its network of pharmacies and food stores, it has been providing essential services since the beginning of the crisis. Its priority has been to ensure the safety of employees and customers while continuing to meet everyone’s needs.

Metro has been implementing new measures in its pharmacy network to provide a safe, clean and pleasant environment amid the pandemic.

Business hours were reduced to give employees a break and allow shelves to be restocked safely. Pharmacies were being cleaned regularly according to the strictest hygiene standards, and Metro increased the frequency of equipment cleaning, especially in high-traffic areas.

For its part, the Jean Coutu Group donated $50,000 to New-Brunswick United Ways to support community relief efforts during the ­pandemic.

Mindful of the public’s concerns and the impact COVID-19 has on their lives, Coutu answered the call of its longtime community partner. This donation helped to meet urgent community needs, supporting vulnerable individuals and families, as well as frontline organizations, through the delivery of food, access to health supplies and transportation to critical appointments, in addition to helping with mental health and social resources.

“Our business is well diversified, and we are confident in our ability to grow by focusing on our customers’ needs and continuing to invest in our retail network and supply chain,” stated Metro president and CEO Eric La Flèche.

McKesson Canada

With over 2,500 independent locations, McKesson Canada’s Retail Banner Group continues to provide the country’s independent pharmacies with new tools in fighting the virus as well as servicing patient needs — from leading-edge pharmacy programs to seasoned marketers to front-shop experts — for running a strong community pharmacy.

“Independent pharmacies need access to new technologies and networks in order to gain a competitive advantage, and that’s our top priority,” said Retail Banner Group senior vice president George Jeffrey. “We are focused on providing the technological solutions that pharmacists need to spend more time with patients doing what matters most.”

The Retail Banner Group provides services and software to increase accuracy and productivity, from access to data analytics to a complete line of point-of-sale and inventory management solutions.

“McKesson Canada’s Retail Banner Group brands [Uniprix, Proxim, I.D.A., Guardian, Remedy’sRx, The Medicine Shoppe] are some of the most diverse and innovative in the country,” Jeffrey explained. “Our partner pharmacies have more than 2,500 locations across the country, and every day they work hard to improve care in every setting, one product, one partner, one patient at a time. It’s a team and a network we are very proud to be a part of.”

Pharmasave

Even before the onset of COVID-19, Canadian health care was moving toward personalized care and health management, and Pharmasave is proving the effectiveness of its approach as a leader in both of these areas. Relationship-based care, supported by leading-edge technologies, is at the heart of what the company does, reinforcing its forward-thinking commitment to helping Canadians lead healthier lives through tech-supported, individualized care.

“From the time we opened our first store in British Columbia in 1981, our unique member-owned, member-operated cooperative has focused on understanding and meeting the needs of each of the particular communities we serve, backed by the most complete programs, services and support available to independent pharmacists. Thirty-nine years and over 700 stores later, with a strong presence from coast to coast, the success of the Pharmasave model speaks for itself,” said Carmen Churcott, CEO of Pharmasave National.

Today, Pharmasave remains distinct in the retail pharmacy world by staying true to its roots as the company continues to play a vital role in the delivery of community health care services across the country. “While we continually introduce state-of-the-art digital technology and cutting-edge pharmacy initiatives, we remain steadfast on the importance of maintaining a personal community touch, with the vast majority of our pharmacists still greeting customers by name,” she added.

“The pride of Pharmasave is our culture of mutual collaboration and trust among our pharmacy owners, with each adapting their store according to the needs of their respective communities. Each of our locations may look and feel different — given that our stores range in size from a 500-square-foot location in a remote community to a 22,000-square-foot wellness hub in an urban downtown core — yet each owner is backed by the same strong, trusted national brand, industry-leading tools and education, and the opportunity to collaborate with like-minded owners who share their commitment to community,” Churcott explained.

A leader in digital technology and cutting-edge pharmacy initiatives, Pharmasave was well positioned to support the new operating normal due to the pandemic. Pharmacists are using tools and resources from the MedAlign@Pharmasave program to help perform medication reviews and manage patient medications, synchronizing refills to come due on the same day and allowing for a single contact-free delivery or curbside pickup.

Walmart Canada

Walmart Canada operates a growing chain of more than 400 stores nationwide serving more than 1.2 million customers each day. Their stores and Supercenters carry nearly 120,000 products, including fresh groceries, ranging from apparel and home decor to electronics and grocery, plus specialty services such as pharmacies and photo centers. Walmart Canada’s flagship online store, Walmart.ca is visited by 600,000 customers daily. With more than 90,000 associates, Walmart Canada is one of Canada’s largest employers and is ranked as one of the country’s top 10 most influential brands.

Horacio Barbeito, president and CEO of Walmart Canada, said that “while our stores look different during the pandemic, we’ve made changes quickly to prioritize safety and to ensure customers can access the resources they need at the low prices they expect and ­deserve.”

He noted that during the pandemic, demand for online grocery orders through Walmart.ca continues to be high. “The team is fulfilling thousands of orders a day. We’re adding more capacity, meaning more pickup and delivery time slots are opening store-by-store. I want to be fulfilling three times the orders we are today, and we have a bold plan to make it happen. Many of the 10,000 new associates we’re hiring will support our online grocery business.”

London Drugs

Throughout Alberta, Saskatchewan, Manitoba and British Columbia, London Drugs, which is 100% Canadian owned, employs more than 7,000 staff in its 83 stores, all dedicated to providing its customers with a superior shopping experience including selling selling a wide variety of consumer electronics products.  The motto Pharmacy Trusted Since 1945 expresses why London Drugs opens its doors every day. “Our pharmacists are passionate about their jobs and work [and they want] to show the public why they are a crucial factor when it comes to their health care needs and outcomes,” said Chris Chiew, general manager of pharmacy at London Drugs.

Advertorial sponsored by ANB Canada, Inc.