Navigation

Target Pharmacy

NEW YORK -- The Upper East Side is one of a handful of Manhattan neighborhoods where people-people of means, that is--still go to raise families. It's also a stone's throw from some of the city's biggest hospitals.

And more than anything else, even more than the crayon-like writing on the bright red awnings that wake up an otherwise sleepy residential block, it is these two things that define Cherry's Pharmacy niche: kids and health care. Certainly, a much younger demographic than most pharmacy retailers are targeting these days.

Specializing in pediatric compounding, Cherry's Pharmacy is quickly building a loyal and happy patient base through referrals from nearby doctor's offices and a combination of service, atmosphere and service, a little bit of flavor to make the medicine go down, as they say. Only a little over one year-old itself, Cherry's places as much of an emphasis on patient counseling and follow-up as it does on customizing formulations to suit children's needs--and tastes--from the creation of gummy bear and cotton candy delivery forms to transdermal creams that are even less invasive.

While customers 55 years and older use three times as many prescription drugs as anyone under 55 years old, kids under five are the next biggest users of prescription drugs. And with many other chain making a full court press on aging baby boomers, kids have become the new hot ticket in the prescription drug market. Cherry's business model is built around doing anything possible to make medicine more palatable for kids. The store, at East 66th street between Second and third avenues, posts a menu board of flavors--much like an ice cream shop might have--for kids to choose from.

About 80 percent of Cherry's business is generated behind the pharmacy counter. Still, the tiny 600-square-foot store, somehow makes for roughly 1,000 parent survival kit SKUs at the front end of the store, including a deep assortment of homeopathic remedies for common ailments, like colic and ear ache. Taking advantage of the trading area and the extra discretionary income of the residents who live there, Cherry's also makes a statement with high-end skin care lines like California Baby and items like Preggie Pops and Queasy Pops for moms-to-be.

The store is the brainchild of Charles Tabouchirani, a pharmacist and father of two, who has experience behind the counter at both chain and independent pharmacies. Tabouchirani and William Brownstein, also a pharmacist, first kicked around the idea about nine years ago. Without conducting any formal market research, both agreed there was an unmet need--even in New York City. "People don't think Manhattan has a lot of families, but they are abundant," said Tabouchirani.

And so are the profits. The store, which Brownstein and Tabouchirani opened together, generated sales of almost $2 million in 2004, according to Tabouchirani. Current projections show Cherry's could hit $4 million this year.

Helping to generate the constant flow of traffic are the large number of families and schools in the immediate area, as well as dozens of doctor's offices within close walking distance. Part of Cherry's growth strategy lies in building relationships with local-area doctors. Brownstein and Tabouchirani call on local doctors on a regular basis to let them know what Cherry's is and what its capabilities are. According to the partners, in some cases the detailing has been so effective that many of the doctors now feel comfortable calling Cherry's to consult on medication issues.

From a patient's perspective, part of Cherry's appeal, from its free stickers to its lollipops, is an atmosphere that makes kids want to come back, even if they aren't sick. It's like the Dylan's Candy Bar of pharmacy, right down to the huge, colorful mural painted on the inside wall or the electric train that runs along the perimeter of the store, easily visible to stroller-pushing parents and nannies who walk by. And beyond its play/waiting room with its Thomas the Tank Engine play set, Cherry's encourages kids to play a more active role in their health care, Tabouchirani explained "If kids are old enough to understand directions, they are old enough to begin taking responsibility in their health care," he told Drug Store News.

Tabouchirani also encourages moms to let kids choose the flavors they want added to their medication. It encourages kids to exercise a level of control over their own care, and that empowers them to make decisions about their health. According to Tabouchirani, only about one-third of children take their medications as directed.

To boost kid compliance, Cherry's places a significant emphasis on consulting with parents both at the pharmacy counter and through follow-up phone calls.

"We don't just want to fill a prescription and make sure that customer has a nice experience. We call the parents three or four days later to see how they are doing or if they have any questions," said Tabouchirani.

Currently, plans call for expansion a little bit closer to home, with Brownstein and Tabouchirani eyeing up a site in New York's West Village, another place where young, well-to-do parents go to raise kids in Manhattan.

Cherry's closest competitor concept-wise is Kids 'n Cures. The 5-year-old Boardman, Ohio-based pharmacy, like Cherry's, also is looking to grow its store base. Currently, there is just one Kids 'n Cures location, but the pharmacy, specializing in acute care prescription services for kids, also is interested in building a franchisee base.

COPYRIGHT 2005 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2005 Gale Group