Dutch Supermarkets Plan OTC Sales Boost

Dutch supermarket chains plan to increase sales of over-the-counter drugs, but are divided as to whether pharmacies will have to be added to the stores, says a survey carried out by the Distrifood trade journal. Strict rules on opening of pharmacies have now been relaxed, but the law still prohibits combination supermarket/pharmacies, although this could be circumvented by creating a separate entry to the pharmacy, adjacent to the supermarket.

Leading chain Albert Heijn forecasts that at least 200 of its stores will be selling OTCs this year, and estimates that its prices will be 10%-15% cheaper than those charged by pharmacies, noting that the gross margins on OTC products are in the region of 32%-37%. There is concern that the large supermarkets will use these margins as a means of attracting customers; the Konmar chain is already selling a variety of OTCs at cheaper prices.