Growth ahead for CDC


Chemist Discount Centre has this week introduced a new long-term pricing strategy across the national brand

The first phase roll-out covers 5% of its planogram items and is estimated to bring margin improvement of approximately 0.5% of each pharmacy’s whole year non-dispensary revenue based on forecast.

The brand’s efforts in delivering net profit increase strategically is highly valued particularly during these tough times, it says.

It says that the CDC pricing strategy has been formulated via a national comparative analysis which assesses the pricing behaviour of thousands of products in pharmacy, including patterns, fluctuations, seasonality, and promotions, and is “not just about pricing”.

Cross-functional teams at the Group’s Support office have worked collaboratively to create a comprehensive approach that supports the pricing rationale based on the four category roles and strategy, the brand says.

“The CDC pricing strategy is able to be implemented with confidence through sophisticated data analytics and systems,” Hugo Ortiz, Chief Operating Officer at Advantage Group says.

“CDC pharmacies utilise a proprietary inventory management system, Buy-IT-Right, which powers its order automation, maintains consistent and accurate stock files, and provides comprehensive reporting. Combined, these allow for managed pricing.

“This ensures that we can implement our own unique competitive pricing strategy as a true discount pharmacy, without detrimental effects on our growth.”

Data shows that mature like-for-like CDC pharmacies are achieving 6.5% year-on-year revenue growth, and 6.3% growth in unit sales.

The CDC brand has also been growing rapidly, with franchise numbers increasing 40% in the last financial year and projected to continue growing at a rate of around 30% year-on-year.

This month is set to the opening of two CDC pharmacies in Wallan and Kilmore, Victoria.

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