Pharmacies: how to restart declining activity?

Faced with an unprecedented situation, such as that imposed by the Covid-19 pandemic, there is no way of knowing how long containment can be prolonged. The truth is that the impasse in commercial activity could last several months and pharmacies see their turnover being severely affected. In this context, it is imperative to react. Taking measures aimed at preserving pharmacies' cash flow, readapting services and readjusting the offer are mandatory actions, especially at a time like the current one! Find out how to deal with falling activity in this article!

Pharmacies: how to guarantee the sustainability of the activity?

In order to combat the pandemicCovid-19 and prevent the spread of the virus, the government announced a set of measures that forced the closure of several activities. Considered essential, the activity of Portuguese pharmacies continued ahead, although with major drops in demand and consequent drops in revenue. Faced with this scenario, pharmacies must reinforce liquidity to support the fixed costs of their businesses, be they tax obligations, rent, credits or salaries. To support pharmacies at this stage and help them react, it is necessary to use all the support measures taken by the government and find ways to overcome this milestone. Now see:

Identify the breaking point of pharmacies:

The first thing to do is know what your breaking point is. In pharmacies – and in any other business – the breaking point is determined at the intersection between the turnover recorded in a given month and the set of fixed expenses to which it must respond (general expenses, personnel expenses, owner's remuneration, interest and loan maturities, etc.). Once the breaking point has been identified, you must make adjustments and cut expenses. If the breaking point is not reached, measures must be implemented to reduce the fixed costs associated with your business. For example:

• Negotiate moratoriums: in this period profoundly marked by the COVID-19 pandemic, pharmacies will be able to postpone the payment of installments resulting from obtaining credit agreements.
• Postpone the payment of tax obligations: In view of the drop in pharmacy activity, the Portuguese Government announced, on March 18th, the flexibility of tax payments. This means that, when payment is due, pharmacies will be able to pay in three months without interest or pay in six installments, with late payment interest applied to the last three installments.
• Access a line of credit: For pharmacies that showed a 20% decrease in the number of sales last March, the Portuguese Government provides a diverse range of credit lines, worth 3,000 million euros. To access these lines of credit, pharmacies must submit their application to their respective participating banks, and can benefit from repayment within a period of four years.

Expand the way you provide services:

Taking into account the confinement measures to which many at-risk patients are forced, pharmacies may consider home delivery of medicines or sending them through subcontracted services. Therefore, when adopting this alternative, pharmacies must carry out a risk analysis and ensure that all conditions ofsafety and preventionare assured. In this sense, it is essential:

• Gather information about at-risk patients;
• Establish and define delivery times and shipping methods;
• Ensure access toprotective equipment, such as gloves and masks, to the entire pharmaceutical team;
• Establish and maintain telephone contact with regular patients who may be infected;
• Publicize prevention measures on pharmacies’ websites and websites;
• Take measures to ensure that medicines are delivered safely in cases where suspected infection is latent.

Adjust supply to demand

With the declaration of a calamity situation, it is essential to carry out a market analysis and adjust supply to demand. In the case of pharmacies, the priority should be to identify the requirements of the local community where they operate. This consists, for example, of ensuring the availability of analgesics and antipyretics, ensuring that there are no stockouts.

On the other hand, this would be a good time to reconsider the limitation on the quantity of medicines sold to a given individual, considering that more and more people are going to pharmacies to buy medicines for older relatives who are unable to leave the house. Likewise, in the absence of prescription medicines in stock, it is important to ensure alternatives. Getting in touch with pharmacies in the same group or having access to a supplier with great responsiveness can be viable solutions. Furthermore, if you cannot find a way to respond to a request for a specific prescription, it might be a good idea to write down the request and contact the customer as soon as the prescription is ready. This could be a good way to avoid unnecessary contact in pharmacies

Calamity Situation: the principle of deconfinement

In view of the new rules and exceptional measures aimed at restoring normal living conditions, resulting from the declaration of the calamity situation, pharmacies are forced to readapt their service. Since, in this first phase, the calamity situation is ongoing between May 3rd and May 17th, pharmacies must remain especially attentive and take into account some guidelines and good practices imposed by the deconfinement plan implemented in Portugal, these are:

• Reinforce social distancing, as the deconfinement plan limits the maximum capacity to 5 people per 100 square meters;
• Mandatory use of masks;
• Rotational work, with staggered work and mirrored teams;
• Adjust opening hours and services available;
• Ensure adequate stock reinforcement;
• Implement strict hygiene measures in order to control the risk of infection;

MEDD: together, we Restart pharmaceutical activity!

Positioned on the front line of the fight against the pandemic, pharmacies must guarantee the safety of patients and the work teams that make up them. A requirement that becomes easier to fulfill with the help of MEDD. With affordable solutions that are particularly effective in protecting your team and users, you can easily and safely restrict access to your commercial space and carry out the restart you so desire. After a very significant decline in your activity, it's time to start over! Count on us!

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