Social media, school calendar will shape back-to-school season
PORT WASHINGTON, N.Y. — The upcoming back-to-school season will be extremely dynamic, as shoppers increasingly shop for school supplies online and tax-free holidays and school start dates shift.
“To the average consumer, back-to-school shopping may seem like a fairly consistent and predictable routine, but for retailers and manufacturers it is an extremely dynamic environment,” said Leen Nsouli, director, office supplies industry analyst, The NPD Group.
Birth of a back-to-school season online: While back-to-school shoppers are still shopping primarily at brick-and-mortar, they are increasingly purchasing supplies online. From July through September 2015, the e-commerce channel gained $90 million in dollar share growth versus brick-and-mortar. “Consumers are spending more online and it is occurring later in the season, with a seasonal arc forming from the first week of August and lasting through mid-September. Back-to-school online share will continue to grow, making it even more essential for retailers and manufacturers to optimize their omni-channel strategies,” said Nsouli.
Shifts in school start dates and tax-free holidays: School start dates differ by region and grade level around the U.S., causing variations in spending patterns and influencing when consumers are in stores and shopping for supplies. Areas such as New York and Seattle are among the latest start dates, while Atlanta and Phoenix are among the earliest. This year there will be two less shopping days between the Fourth of July and Labor Day. “Each year back-to-school spending occurs later, and a late Labor Day holiday in 2015 pushed out the spending even later than prior years. I anticipate this will also be the case this year,” said Nsouli.
At the same time, there will be differences in the handful of states that offer tax-free days during July and August. This year there will be nine less days by state versus 2015, and some others have shifted their days. This pertains not only to brick-and-mortar stores; e-commerce sites will also be offering tax-free savings on items. “All of these factors reinforce the importance of timing for retailers and manufacturers as they plan their assortments, in-store and online merchandising, and back-to-school marketing campaigns,” added Nsouli.
Influence of school lists and supply packs on purchases: “With 70 percent of teachers providing school lists and 30 percent offering school supply packs, it is no surprise that these are the primary stimuli for back-to-school supply purchases,” said Nsouli. K-6 school list items vary by region, which impacts the demand and sales for certain items in those areas. For example, a higher percentage of thesauruses are on school lists in the Northeast, and watercolors in the West, according to NPD’s Back-to-School Supply List Database 2015. There is also a regional relevance when it comes to school supply packs, which are offered to parents for purchase by the school.
“Social media engagement has added yet another dimension to every industry and season, and back-to-school is no exception. A perpetual stream of trends on platforms such as Pinterest and Instagram means that teachers and other consumers alike are being influenced in new and different ways. This has also helped to put the fashion back in function when it comes to supplies; consumers are willing to spend more on aesthetically pleasing, or fashionable, products, ” said Nsouli. In fact, last year NPD found that over one-third of U.S. teachers used Pinterest and 20 percent used Facebook for classroom curriculum and school list inspiratio.
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Executives unveil new Pathway program during Health Mart Annual Meeting
McKesson’s Health Mart pharmacy network hosted its Annual Meeting in Chicago Tuesday morning, at McKesson ideaShare 2016, unveiling an important new program — the Health Mart Pathway to Better Performance and Profit(SM), which provides a strategic roadmap to help independent pharmacies shift the way they approach their clinical and financial performance and pharmacy operations, and demonstrates the value they can contribute to the local healthcare ecosystem.
That value is substantial, noted Health Mart president Steve Courtman. “More than 44% of all Health Mart pharmacies have adherence metrics in the top 20%, and we’re either No. 1 or No. 2 in adherence for many plans across the country.”
Courtman chalks it up to the simple fact that Health Mart members value their independence in serving their local communities, while at the same time they work collectively toward common objectives, helping to level the playing field and compete with the chains for access to preferred networks on the merits of the value of the services they provide. “Together you’re tackling the challenges of this changing industry and building a successful future for independent pharmacy,” he said.
The next challenge for Health Mart is to demonstrate the value it can deliver both at the individual operator and network levels, leveraging high quality performance measures and rapidly expanding scale — with more than 4,700 locations, the network has grown some 50% in the past three years, Courtman said. “What do our customers want that we can do that the chains can’t? Owning the patient relationship,” he said. “We have the scale and the performance.”
To help Health Mart operators demonstrate their ability to deliver improved outcomes and the value of owning that patient relationship, the new Health Mart Pathway provides a realistic, pharmacist-approved process for making practical changes to a Health Mart owner’s business that help enhance profitability and clinical performance.
Building on the established success of its peer-to-peer Town Hall meetings — Health Mart hosted more than 100 such meetings around the country over the past year— Health Mart hosted a special peer-to-peer workshop Tuesday afternoon at ideaShare where members shared best practices of how their own companies already had successfully implemented activities on Health Mart’s Pathway. Courtman walked Health Mart members through the five-step approach during the morning Annual Meeting.
The first step on the Pathway is getting educated on the challenges and opportunities facing retail pharmacists, Courtman explained. “Health Mart wants to be your go-to adviser to help you get educated and to set these goals. Our Town Halls and our Health Mart University would be good examples of some of the things we’re doing to help you to do that.”
The second step is monitoring clinical and financial performance, including taking such actions as setting baseline clinical performance measures and creating an action plan for pharmacy staff on how to improve those performance measures. “You can’t manage what you can’t measure,” Courtman said.
The third step is to implement medication synchronization, which helps establish the workflow necessary to offer more robust patient care and revenue-generating services. “It’s probably the toughest change to make in store because it’s impacting operations and workflow,” Courtman said. To help take some of the risk out of the equation, Health Mart has hired an implementation team to go out to Health Mart locations to help owners navigate the changes. “It’s about reinvesting in your business — developing the patient services that will help you engage the patient during pickup,” he said.
The last step, Courtman explained, is building deeper partnerships with nearby providers. “Providers want to send you patients because you provide better care,” Courtman said. “Build this credibility, collect these outcomes and demonstrate the value of these patient relationships.”
Following the Pathway announcement, Courtman also used the Health Mart Annual Meeting to introduce his new leadership team, including VP Health Mart Engagement Ed Escalante, VP Health Mart Pharmacy Operations Chuck Wilson, VP Health Mart Network Performance Stacey Irving, and McKesson senior director of Health Mart Marketing Dara Shulman.
The latest addition to Courtman’s leadership team, recently named Health Mart chief pharmacist Crystal Lennartz, then took the stage to moderate a panel discussion of Health Mart owners who offered a glimpse of the impact that implementing various parts of the Pathway plan have had on their businesses.
“Many of you have been really candid with me on many of the challenges you’re working hard to overcome, especially the reimbursement pressures that are facing our industry,” Lennartz said. “And I continue to be impressed by the resiliency of so many of you in this room, to evolve your businesses and care for your patients in new ways, which is really what the Health Mart Pathway is all about.”
Joining Lennartz on the panel was this year’s Pharmacy of the Year winner, Josh Borer, owner of Rex Pharmacy in Atlantic, Iowa, who shared how he successfully introduced a medication synchronization program into his pharmacy’s workflow. “It was a very important point for us and for our success for our staff to realize why [we were adding med sync], because inevitably you’re going to come across some obstacles,” he said. Understanding the strategy behind the program and what they were ultimately trying to achieve helped his staff overcome those obstacles and realize success, he added.
Closing out this year’s Health Mart Annual Meeting was the entertaining Nathan Jamail, author of the “Leadership Playbook” series and self-described “culture coach” who shared insights into how to create the kind of workplace culture where employees are driven by purpose and mission. “You can’t have a thriving business if you don’t have a thriving culture. And by the way, it’s all of our jobs to create that thriving culture,” he said. “What makes your pharmacies successful is culture.”
Crystal Lennartz moderates a panel discussion of Health Mart owners.
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McKesson Pharmacy of the Year winners put patient care, community first
If anyone needed evidence that the independent pharmacy is more to its patients than simply a place to get prescriptions filled, they need look no further than the McKesson Pharmacy of the Year Grand Prize winner and the three regional winners recognized by McKesson at ideaShare 2016. All of the winners share a special commitment to being an indispensible resource and healthcare destination for the communities they serve, and have a common goal to improve patient care.
Pharmacist-owner Josh Borer of Rex Pharmacy in Atlantic, IA was named the 2016 Pharmacy of the Year Grand Prize award recipient. According to Borer, one of the main motivators for him and his staff is the simple desire to better serve the people of his community and help improve their health.
“In our pharmacy we have a ‘why?’ statement, and the crux of it is patient outcomes,” Borer told Drug Store News. “So we sat down and asked ‘Why are we doing this? Why is it important to us? Why is it important to our patients?’ And patient outcomes was the main focus that everyone bought into — that we could actually make a difference with our customers in our community with health outcomes.”
Rex Pharmacy currently has more than 415 patients enrolled in a relatively new medication synchronization program, which has freed up Borer and his staff to add other services that also are helping to drive improved outcomes for its patients. According to Borer, one of the most critical factors for the success of his med sync program has been his staff, which he encouraged to help identify potential patients for the program, so they would have buy-in to the pharmacy’s efforts.
Borer’s highly tenured staff — one of his pharmacists has 25 years with the company — has been a key asset that he inherited when he acquired the 75-year-old pharmacy operation a few years ago.
One of the most recent additions to Rex Pharmacy’s expanding roster of clinical services has been the introduction of a pharmacogenetic testing program, which tests for more than 200 prescription and OTC medications. The store also offers personalized medication reviews, medication therapy management, diabetic shoe fittings and has been working with local providers on transitions of care.
Rex Pharmacy’s collaborative efforts with providers, according to Borer, arose organically from his involvement in the community, particularly his work in quality improvement committees at the local hospital. He views the pharmacy’s offerings as filling white spaces that otherwise go overlooked in patient care.
“I think there are probably a lot of problems out there we could help solve, and being involved helps us identify where there is a need and where there is a place we can fill a gap,” he said.
Hampstead, Md.-based North East regional winner Family Health Mart’s owner Eric Yospa also is driven by a desire to fill gaps in the community’s care — in this case for a community he has been part of his whole life. Opened in 1975, the pharmacy has seen its patient base change from primarily a rural farming community to a larger mix of professionals moving further out from the city as the suburban areas closer to Baltimore have become more crowded and pricey. Yospa said Family Health Mart, with a healthy compounding business, has become a destination for patients seeking hard-to-find medications and dosage forms — and veterinary medications — alongside other clinical services like medication therapy management, which Yospa recently began handling himself.
“Just recently I started doing MTM, and found I really enjoy doing it,” he said. “It takes time but, … because I know [my patients] so well, it's an easy conversation and they're honest about their health, which makes a big difference.”
Like Family Health Mart, Pleasant View, Utah’s, Mountain View pharmacy, West regional winner, offers compounding services, and owner Hal Roe has been as involved in his pharmacies’ communities — he operates a total of five pharmacies in the area — as he has in the independent pharmacy community, participating as a speaker in two recent Health Mart Town Hall meetings about Star Ratings and med sync.
As for South regional award winner Iuka Discount Drugs in Iuka, Miss., owner Chris Cornielson attributes his pharmacy’s many strengths to his staff and the investment he makes in them. Iuka’s unique array of services range from special in-store classes to help seniors choose a Medicare plan to diabetes management and diabetic shoe fittings, immunizations, MTM and other clinical services. In addition the store also found early success in a supplements business called Solutions Rx, Cornielson explained.
“We come into work every morning, and we have a morning huddle and talk about being great and being a world-class team,” Cornielson told Drug Store News. “That's what we strive for. We want to change people's lives in our community, and I really want our customers to know that I've got a great team.”
Congratulations Josh from everyone at RxCherryPick for such a prestigious award ! It's independent pharmacies like yours that keep our communities in good health Best Regards Craig RxCherryPick