The Medicine Shoppe plans chain in Chennai  ( February '23,2001, HBL)

THE Medicine Shoppe, the chain of pharmacies in the western region of the country, plans to make its foray into the south and has zeroed in on Chennai as its first destination. The chain, launched as a franchisee of Medicine Shoppe International, based in St. Louis, US, has 13 pharmacies spread over Mumbai, Pune and Baroda.

The US-based chain, in the pharmacy business since 1971, is among the world's largest pharmacy chains, with more than 1,440 outlets in 10 countries, including Canada, Australia, Mexico and in several countries of Asia. Speaking to Business Line recently at the KSA Retail Summit held in New Delhi, Mr Viraj Gandhi, Managing Director, Melrose Trading Co Ltd, the master franchisee for The Medicine Shoppe, said that the chain has selected Chennai as its first stop outside the western region as the city has taken to the new organised retailing concepts.

Also, the success of retail chains such as FoodWorld and Subhiksha has prompted it to look at Chennai as the acceptability factor for new retail concepts is high, said Mr Gandhi. Medicine Shoppe started in India in early 1999 and plans to expand quickly under the franchise model. Melrose will be interacting with interested franchisees shortly in Chennai. Mr Gandhi said that with the entry of foreign retail chains and large corporate groups, competition in the retail pharmacy business will hot up.

Medicine Shoppe, he says, will provide local retailers and entrepreneurs with the skills and knowledge required to take-on organised retail pharmacies. Medicine Shoppe will take-on competition, it claims, with the value that it offers and not on a discount plank. All outlets are air-conditioned, spread across a minimum 500 sq.ft. area, and will sell the complete range of prescription medicines and health-care related products, including homeopathic drugs, herbal-based medicines as well as aromatherapy products.

Each store will have a trained pharmacist always on call to dispense drugs. The pharmacists will also get periodic training from Medicine Shoppe.

``Many pharmacists are looking for an alternative model to the one existing today,'' said Mr Gandhi. Medicine Shoppes, he added, are community pharmacies where customers are given a free membership card which enables them to avail of benefits at the stores such as free medical screenings, medication profiles and pharmacist counselling. For the franchisees, the chain offers a computerised inventory control model, merchandising and store management systems and localised marketing plans to draw customers. In the near future, Medicine Shoppe also plans tie-ups with health insurance companies to drive more business for the chain as a whole. Franchisees pay a royalty on sales to the master franchisee, Melrose.