Improving pharmacy store performance: the merits of over-the-counter drugs

Purpose – This study aims to increase understanding of the factors that affect retail pharmacy performance. This paper investigates how various product-, store-, customer- and competitor characteristics affect over-the-counter (OTC) drug sales and thus store performance. Design/methodology/approach – This paper specifies and estimates a hierarchical model comprising scanner-based information, as well as individual-level data from a customer survey. Findings – Results indicate that the drivers of retail pharmacy performance in OTC categories are different from those identified in traditional retailing research. Originality/value – This is the first study that determines which factors impact the sales of OTC drugs in pharmacies.