In the June issue of Retail Pharmacy magazine, the head of the network aiming to become Australia’s second most recognisable pharmacy brand shared his professional journey and discussed the achievement of opening the 100th store in the branded chain – and its target of reaching 200 outlets within five years.
Ian, please tell us about your professional background.
I studied pharmacy at the Victorian College of Pharmacy and completed my year-long traineeship at Mackie Pharmacy in the Melbourne suburb of East Bentleigh. That was 1984.
After my traineeship, I took on various diverse and interesting roles that gave me a wide insight into our industry. One of my first jobs was at Data Design. Each day, I’d take a computer, monitor, lots of cables and some printers and set them up in the pharmacy and teach the pharmacist how to dispense using this novel technology. I also did lots of locum work around Melbourne and country Victoria. Working as a locum pharmacist gave me valuable experience and understanding of the key elements of a successful business, and more importantly, where many pharmacies fall short.
As a young adult, I was eager to venture out into the world, and I spent time travelling extensively through Asia and Europe. When my savings dwindled, I began work as a pharmacist in London and later in Scotland. In London, I worked for the chain of pharmacies called Underwoods (later to be gobbled up by the Boots chain). These were big-format retail stores in central London where the dispensary often only contributed to 10 per cent of the actual pharmacy turnover – a big contrast to the pharmacies I’d worked in.
On my return from travelling abroad, I set my sights on business, but finding a suitable pharmacy to buy within my budget proved to be a challenge. So, I started a business from scratch in Somerville, on the outskirts of Melbourne. That was in 1989. The business went well but was able to pivot when the first Pharmacy Guild-government agreement implemented strict location rules, amalgamation packages and a huge reduction in the dispensing margin in 1990.
After much discussion, John Lopes, proprietor of a neighbouring pharmacy in Somerville, and I decided to merge our businesses. He had a multifaceted background beyond being a pharmacist, with a portfolio that encompassed property development, restaurants, security, and stainless-steel manufacturing. He quickly became my mentor and we embarked on a journey of buying poor-performing pharmacies in Victoria and turning them into thriving businesses.
In the early noughties, John and I entered the realm of large retail formats and owned some Priceline Pharmacies. While John pursued further opportunities with the Health Pharmacy group in Queensland, I deviated from the Priceline path and established the first branded Direct Chemist Outlet (DCO) pharmacy in Werribee, Melbourne: Direct Chemist Outlet Werribee Village. It was a fusion of lots of different elements, including Priceline, Healthy Pharmacy, Chemist Warehouse, IGA and JB Hi-Fi. We had a strong focus on merchandising and a large range of retail products. It was an amazing success.
What is your message to your DCO pharmacy network?
I want to start by commending [our team] on their unwavering resilience during the past three tumultuous years of the pandemic. While we should celebrate our achievements, we must not become complacent and rest on our laurels. Our ultimate goal is clear: to establish ourselves as the second most recognisable pharmacy brand in Australia, period. By September 2028, we aim to have 200 stores in our network.
As our industry faces potential challenges and potential financial constraints imposed by politicians, it’s important to remain focused and concentrate on what you can control: your team and your customers. It’s crucial to invest time and energy in the front of the shop, not just your dispensary, and to welcome junior pharmacist partners into your businesses, as you cannot grow alone. Show your partners a path forward and have a succession plan in place to galvanise your team.
There’s never been a better time to be in this industry.
You’re about to open your 100th store. Tell us more about how you’ve achieved this.
In September 2013 I set a 10-year goal for our entire team – a BHAG, or ‘big hairy audacious goal’, of 100 pharmacies in our network. We’ll hit our goal three months ahead of schedule. This is a true milestone event and has come together by each person in our group pulling in the same direction – from pharmacy owners to retail managers, stock controllers and my immediate team of professionals that includes Rhianna Davis, our GM, Fang Shen, our Financial Controller, Hannah Jackson, our Head of Buying, Donna Maud, our Head of Operations, Sarah Brooks, our Queensland State Manager, Ryan Fehily, our Head of Marketing, and Irene Vergos, our Head of Professional Services.
By keeping your goals clear and simple, you can manage to get everyone focused, and that way the weekly and monthly distractions don’t take over or interrupt your long-term journey.
Our success has been built on a store-by-store basis. Each location under the DCO brand – which encompasses a wide range of former pharmacy brands such as Priceline, Amcal, Soul Pattison, Advantage, Pharmacy Alliance, Guardian, Pharmacy 4 Less, Discount Drug Stores, PharmaSave and Terry White – has contributed to the growth and strength of our network. Not a single owner has ever left the DCO banner. I think we might be one of the very few pharmacy groups that can boast such a feat.
This Exclusive Interview was originally published in the June issue of Retail Pharmacy magazine.
