In the competitive marketplace of community pharmacies, it is not just the pharmacist’s knowledge, the product range, or the ancillary services that win over customers. It is how the store looks, feels, and guides customers.
Investing in layout and fit out is not cosmetic fluff. Done well, it can deliver measurable returns in basket spend, customer footfall, dwell time and loyalty.
Below are the key levers, evidence, and why pharmacies should take store presentation seriously.
Why presentation matters, what we know from research
- Customer flow, dwell time, and impulse purchases
A well-planned layout guides people past high margin or impulse merchandise, increasing the chance of purchase beyond what they came in for. Retail psychology shows that when customers stay longer in a store, they tend to spend more. (forbes.com)
Cluttered aisles, poor signage, or confusing flow can reduce dwell time, frustrate customers, or even deter entry.
- Impact of lighting, ambience, and visual merchandising
Lighting, entry and window displays, signage, and how products are merchandised (visibility, grouping, complementary placement) strongly affect perception and purchase behaviour. A visually appealing store emphasises trust, cleanliness, and professionalism, which is particularly important in healthcare settings like pharmacies.
- Basket size and layout or assortment effects
Studies in retail more broadly show that optimised layout and good product adjacencies can increase basket size. For example, one study in a supermarket context comparing different layouts (adding a middle aisle) found differences in both trip duration and basket spend. (sciencedirect.com)
Another academic paper found that when stores reduce assortments but do so thoughtfully, maintaining complementary product placement and good availability, they can increase profits by up to about 6 to 16 percent through better basket retention. This avoids customers abandoning full baskets because they could not find items or the journey was unpleasant, even when store size is smaller. (arxiv.org)
What investment looks like, what you might spend, what to expect
- Costs vary by size, location, material quality, and complexity, such as moving walls, plumbing, cabinetry, lighting. In Australian retail, average fit out cost per square meter for retail spaces in Australia can vary greatly, and currently ranges from $1,500 to $3,000, depending on the type of fit out and location. loumain.com.au
- Key parts include better lighting, clean and accessible shelving and fixtures, signage, aisle width and flow, window display and entrance area, and comfortable waiting zones. Attention to regulatory and compliance needs, such as dispensing areas, is also critical.
- Payback periods depend on the scale of improvement, but the cases suggest that lifts of 10 to 20 percent in revenue are possible within 6 to 12 months if the fit out is well designed, appealing and easy to navigate.
For pharmacies: What to prioritise to maximise returns
| Element | Why it matters | What to do |
| Entrance and window displays | First impressions draw foot traffic. People decide very early whether to enter. | Keep windows fresh, create brand consistent displays, showcase services beyond prescription dispensing such as wellness and advice. |
| Flow, layout, sight lines | Good flow maximises exposure to products and avoids dead zones. | Map natural paths, place high margin or impulse items along those paths, ensure key service areas are easily found. |
| Lighting and ambience | Impacts perceived cleanliness, calm and warmth. Sets a mood that encourages lingering. | Use layered lighting (ambient and accent), avoid harsh or dim lighting, consider natural light where possible. |
| Signage and wayfinding | Reduces frustration, helps people find what they need, encourages exploration. | Clear overhead and aisle signage, distinct zones, visible over the counter and consultation spaces. |
| Comfort | Waiting is inevitable in pharmacies. Comfortable, clean spaces send strong signals of care. | Provide seating, clear sight of service desk, clean finishes, non-slippery flooring. |
| Product presentation and cross merchandising | Group complementary items and use end caps or promotional zones. | Place pain relief products near heat packs, wellness items near over-the-counter supplements, and allow impulse buys near check out. |
Potential counterpoints and what to avoid
- Overinvesting in aesthetics and poor execution such as bad signage or inconsistent fixtures can backfire if presentation is worse than before.
- Regulatory, safety, and hygiene must never be compromised, especially in pharmacies with prescription areas.
- Ongoing maintenance and merchandising such as stocking, cleanliness, and updates are as important as the initial fit out.
Conclusion
For community pharmacies, investing in fit out and presentation is more than décor. It is a strategic asset. The evidence shows that well designed stores:
- attract more people through the door (foot traffic)
- keep them longer (dwell time)
- increase what they buy (basket size)
- build satisfaction, loyalty, and repeat business
With returns in many cases in the order of 10 to 20 percent revenue lifts, the cost of doing nothing or leaving a store looking dated, confusing or cluttered can be far greater.
Written by Dee McNamara, Marketing Manager – AP Group
AP Group are the leading pharmacy experts in Australia, helping hundreds of pharmacists into ownership every year – our team can help with sourcing finance for your purchase, as well as providing the right legal advice to help you navigate the process.
We connect existing pharmacy owners with over 5000 ready and eager investors via our cutting-edge online Data Room. Our Data Room keeps confidential listing data secure and allows buyers to make informed decisions on each of our pharmacies for sale.
About the Author:
A national level surfboat rower (you’ll want to Google what that is), Dee has an adventurous spirit and zest for life that’s contagious to those around her. When she’s not rowing a boat into 6 foot swells, she’s riding the brand and marketing wave, successfully implementing marketing strategies for more than 15 years.
To put it simply, Dee knows marketing. She takes a one-size-does-not-fit-all approach, having learnt leading marketing practices from not just Australia, but around the world. Before joining AP Group, Dee worked as the creative director at a leading marketing agency, filling her marketing portfolio with a range of industries — from sports to tourism to fashion.
As for credibility, Dees got it. She’s been published in Marketing Magazine (2017) and graduated a Master of Marketing with Distinction.