San Diego Independent Pharmacies thrive Despite Chain Competition

Shelter Island and Cabrillo Drug are two of the few independent pharmacies left in the San Diego area, thriving in an environment increasingly penetrated by chains. Owners Andrea Saad, and husband, Michael Saad, RPh, believe in providing exceptional service and personalized attention, and the belief that patient care is a one-on-one relationship that should never be mass produced.

Michael expanded the stores from primarily filling prescriptions to providing clinical management, comprehensive diabetes care, patient counseling, home medical equipment, compounding and an innovative approach to front-end merchandising.

Staying relevant and involved through advocacy and community involvement

As an advocate for the importance of community pharmacies, Michael met with US Congresswoman Susan Davis (D-San Diego) to discuss how independent community pharmacies play a key role in patient lives. Michael explained that mail order and specialty drug contracts deprive patients of the quality of care they deserve.

In addition to advocacy, Michael shares his experience, feedback, and perspective as a valuable resource to:

  • Good Neighbor Pharmacy® (GNP) as a Regional Advisor
  • Group Leader for Western States Pharmacy Coalition
  • Proctor and Mentor for the University of California at San Diego (UCSD) Skaggs School of Pharmacy.

The Saads and their teams at Shelter Island and Cabrillo Drug are enthusiastic volunteers in San Diego community efforts. Notable community marketing strategies of the Saad’s include manning a booth at a local private university’s “New Students Day,” and sponsoring and engaging in joint community outreach events with SeaWorld San Diego and the American Diabetes Association.

Maintaining their competitive edge with new ideas and new sources of revenue

“We need to continuously look for products and new ideas that can replace the falling margins we have filling third party prescriptions”

To maintain their competitive edge with chain pharmacies, the Saads and their Shelter Island Drug and Cabrillo Drug stores have found new sources of revenue beyond filling prescriptions. Like many GNP locations, a healthy front-end makes a difference and attractive merchandising is critical. They believe that a healthy front end can generate profit margins much higher than filling hundreds of prescriptions. “We need to continuously look for products and new ideas that can replace the falling margins we have filling third party prescriptions,” says Michael.

Both stores feature modern interior design and fresh merchandising concepts. As a business strategy, the Saads attract customers to their pharmacies with unique quality products that are not available at traditional chain stores. A variety of interesting and enticing items, incorporating organic and green environmentally-friendly products, transform the stores into a shopping and gift destination.

“One of my business strategies is believing that as community pharmacies we need to re-create ourselves every 10-odd-years”

When they opened Cabrillo Drug in 2010 the Saads used attractive, inviting wood flooring and a soothing, warm color palette. Modern displays of modular wire racks on casters that can be readily and easily rearranged enhance the flexible floor plan. “One of my business strategies is believing that as community pharmacies we need to re-create ourselves every 10-odd-years,” says Michael. “New business ideas and total store remodels that go with the changing times and image – we try to create them for the future.” With this thought in mind, they remodeled their Shelter Island store and gave it a totally unique look.

As a successful pharmacy business model, Point Loma Shelter Island Drug showcases a comfortable, open floor plan, and displays filled with unique and environmentally-friendly gifts and greeting cards.

As a successful pharmacy business model, Point Loma Shelter Island Drug showcases a comfortable, open floor plan, and displays filled with unique and environmentally-friendly gifts and greeting cards.