Rebranding the perfect tonic for pharmacy group

DOCMORRIS is Ireland’s largest pharmacy retail group with 72 stores located across 15 counties, including the major centres of Dublin, Cork, Kilkenny, Limerick, Waterford, Wexford and Wicklow.

The company employs 850, and operates under two brands, DocMorris and Unicarepharmacy, as the rebranding roll-out continues. “We are over one third of the way through our rebranding with the 27th store just completed,” says Cormac Tobin. “As well as that, we have also launched our franchise option and would hope to have a few of those stores opening in the New Year. All in all, it’s been a very busy year for us.”

With the new name taken from a combination of its obvious medical association and one of the founder partner’s love of Morris Minor cars, the company’s progress in 2011 has been underlined by coming out on top at this year’s Retail Excellence Retail Awards winning Company of the Year and Best Employer.

With a retail background ingested through the innovation and customer-driven ethos of Superquinn since his early teens, Cormac Tobin sees obvious commercial similarities between supermarkets and pharmacies.

“It really doesn’t matter what product you’re selling, it’s all about satisfying consumers and finding solutions to their problems. Giving the customer compelling reasons to come back was one of the key lessons I learned at Superquinn, which is largely the same way we approach things at Unicare/Doc Morris.”

In a sector which he says was not previously as focused on these areas, the company’s clear strategy going forward is based on a strategy of consumer driven decisions. “A reflection of this is our loyalty programme, which is now heading for 50,000 in 2011,” he says. “Unlike many similar programmes out there, we do not put barriers in the customers’ way to benefit, quite the opposite, in fact. It is a way of saying ‘thank you’ to them, and, hopefully, a means of retaining them as customers. Making it easy for the customer to achieve rewards is why the number continues to climb,” he adds.

The company, part of the €22 billion Celesio Group, which also includes Cahill May Roberts and Movianto, is investing €15m in the overhaul and refit of its nationwide chain. “Our research highlights how the Irish consumer has changed in response to the economic downturn. People who don’t have a medical card are cutting back on their use of medicines as a result of the recession and financial pressures, even when they are prescribed them.

“While the need for advice and quality remains key, the Irish consumer is demanding better value for money, innovative new products and services. In response to this we have focused our product and value offering to meet changing needs. By further expanding DocMorris in Ireland, we bring a specialist value-driven focus to retail pharmacy,” he says.

Bringing a new attitude to the industry has been a key factor in the Doc Morris rebrand and expansion: “When I first came into this industry, I was amazed at the sense of entitlement to be found here. I come from a world where you need to fight for the customer every day because if you don’t, they may not be here the following day. We decided we would challenge every aspect of the industry, most notably on three fronts — customer service, an innovative environment, and, most importantly, value for money.”

The DocMorris chain was founded in the Netherlands in 2000 and became the first mail-order pharmacy to deliver pharmaceuticals by post to patients in Germany — a move that resulted in major upheaval in the sector.

The pharmacies offer a diverse range of services from health screening services to cholesterol checks and hearing aids. Stores are designed with products clearly labelled and priced for consumers — an environment not unlike supermarkets.

“We wanted to create an environment where the customer can readily access our services and knowledge,” he says. In keeping with its value ethos toward the customer, DocMorris has undercut its competitors on a number of over-the-counter products including the morning after pill, which it sells for €15 compared to an industry average of €25 to €45.

“People are cutting back on their health care as the country goes through this difficult time,” he says. “We believe they will reward companies who look after them with their loyalty, and, for that reason, we are quite happy to disrupt the industry out of its normal behaviour.”

Tobin makes regular reference to the business instincts and innovation learned through his formative years at Superquinn — a working formula that clearly guides his current position at Doc Morris. “Working for Fergal Quinn was a joy every day, because every day you learned something new and built on the passion to compete for and hold customers — it was an incredible training to get. He’s a man whose work ethic and attitude should be part of the retailing education of anyone walking out on a shop floor — be that supermarket, pharmacy or whatever. Consumers want value, and especially during difficult times, but they also want to be treated with respect and empathised with, and retailers who do this will deliver excellence at the counter.”

High rents continue to be a problem for retail generally — an area where government involvement is urgently needed, he believes: “Any new stuff is quite fair in the market, but we have an existing legacy dating back to the boom years and up to recently where rents went up astronomically. This problem needs to be addressed very quickly and the government has not owned up to its election promises to do something about it. That said, I would state that smaller landlords have been very realistic and fair, and in our own situation have worked with us to agree levels of rent that are bearable for all,” he adds.

A general lack of governmental policy around retail continues to overshadow an area of potential employment growth. “Retail is the number one employer in the country, and it does seem with the VAT increases that are about to occur allied to the ongoing rent problem that this is surely an area that requires a dedicated minister,” he concludes.

“The country’s biggest employer and yet it has nobody in government to champion its cause. The combination of retailer frustration and the need for increasing consumer confidence are surely key areas to help us get through the current downturn, and should be cause for more attention than they currently are.”