Industry Analysis & Industry Trends
The Pharmacies industry plays an important role in the provision of community primary health care. The nation's 5,325 community pharmacies provide services such as medication management information, advice on minor ailments and over-the-counter (OTC) medicines, and preventative care services. They are also the primary distribution points for prescription and scheduled OTC medicines. The industry is highly fragmented and made up of a large number of individual operators. Despite this, it makes a significant contribution to the Australian economy.
The industry has gradually undergone several changes over the past few years, spurred on by the fundamental changes occurring in the general pharmaceuticals sector... purchase to read more
Industry Report - Industry Investment Chapter
The capital intensity of an industry is determined by the ratio of capital (depreciation) to labour (wage costs). In the Pharmacies industry, this ratio equates to 1:9.4. This low level of capital intensity reflects the labour-intensive nature of retail trade in general and the Pharmacies industry in particular, where there is a heavy reliance on skilled pharmacists and pharmacy assistants. Wages and salaries are the second highest expense after stock and cost of goods sold.
At the same time however, capital is being increasingly invested into new IT systems and store layouts in an attempt to boost front-of-store sales... purchase to read more