A lot of questions have been raised by the writers of i2P and a range of options presented that could represent various pathways that Woolworths may take.
The following is what I believe will be a reasonable "crystal ball" presentation as to what will happen in terms of strategy, and simultaneously poses a range of questions that pharmacy leaders must prepare answers to, after reviewing their own strategies.

BASICS:

1. Woolworths will progress with what they have currently flagged. Progress will be governed by their own internal research i.e they will map out an area within their 690+ stores around Australia, make it look "different" to the rest of the store, but have it look pharmacy-like. They will initially be staffed with accredited pharmacy assistants until they can beef up their own in-house training programs to take over.

2. Woolworths will progress the deregulation of as many drugs as possible to a level where they can be openly sold. They will continuously profile the inventory range until they have the "mix" that works for them.

3. Woolworths will progress their standalone but independently-owned pharmacies, but not at any great rate. They will initially target and make offers to pharmacists who are already in the centres in which they operate.

4. It is Woolworths ambition to own outright their own pharmacies, so they will not be too keen to progress down the track in point (3) until it becomes clear to them whether state and federal governments will relax legal restrictions, and under what terms.

5. If after a two year period there is no progress in the relaxation of restrictions, Woolworths will look at buying into a wholesaler which gives them the greatest range of options. My bet is that Mayne will be the most attractive to them, particularly if they become EAN compliant within this timeframe.

6. The option in (5) will be looked at cautiously as Woolworths structured a similar organisation for grocery independents a few years ago. It did not fire very well, so the scheme was abandoned.

7. Progress will be cautious and steady. There will be no mass movements or migrations until laws are changed.

AND WHAT OF OFFICIAL PHARMACY?

1. There needs to be a strategic group formed from all levels of pharmacy as a "think-tank". The Pharmacy Guild of Australia should not attempt this one alone, but it should provide as much infrastructure as possible. Target participating individuals with "attitude" rather that those who are "politically correct". This is not going to be a picnic.

2. Look at freeing up the strictures placed upon owner pharmacists.
* Go back to allowing any pharmacist to hold an approval number. This is necessary to allow freedom of market movement.
* Immediately allow pharmacists to have whatever business structure they desire, with the proviso that it is pharmacist-controlled. Set the entrepreneurs free because we will need at least two national pharmacy chains plus a number of smaller regional or local groups.

3. Encourage pharmacists to invest in new pharmacy formats, particularly retiring pharmacists, female pharmacists and newly graduated pharmacists. The ability to buy shares in any pharmacy company to any level and on a continuing basis, ought to be possible.

4. Set up venture capital groups that utilise existing financial structures (Bendigo Bank, Guild Finance) and lobby to allow these operations to invest under certain conditions.
Pharmacy will need access to buckets of money if it is going to rebuild a competitive infrastructure.

5. Simultaneously, with all the above, review what legal restrictions will be needed to confirm a continuing and absolute pharmacist-only ownership. Lobbying strategies to inhibit and counter Woolworths strategies should be developed.
The current weakness that has been exposed within pharmacy is such that pharmacy has no confidence in itself to compete with Woolworths under current structures and conditions.
Organisational structures that can genuinely compete must be the first developmental priority, and pharmacists must fight "tooth and nail" to create the lead-time to develop such structures.

6. While endeavouring to create a less restrictive regime internally within pharmacy, there is no need to resile from creating the necessary restriction to thwart external operations, such as Woolworths (and the others that will inevitably be putting up their hand).

7. One leg of the war will be fought around staffing, particularly pharmacists.
Ensure that graduating pharmacists can be "bonded" with shares in a pharmacy enterprise, so that they have something to protect. Headhunt them before leaving universities, and prevent any leakages to organisations such as Woolworths.

Make no mistake.
Woolworths, given even half a chance, will forever change the face of pharmacy.
While they will set up efficient distributive structures that will offer economies that will interest government, they will not invest in the professional aspects of cognitive services, because they are too difficult to control. They are intangibles which non-pharmacists find difficulty in seeing value.
If Woolworths succeed in gaining the majority of prime sites for their pharmacies, this will effectively sideline those pharmacies offering cognitive services.
If we are going to survive in the format we wish to practice and aspire to, we have no option but to fight, and it must be under good leadership.
So it's over to you leaders-whoever you are!

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