When consumers get injected into the health delivery equation, amazing things happen: non-traditional solutions like retail health clinics debut, changing the cost and care formula for the better . In-store clinics will continue to spread like a virus, with store counts expected to reach 2,000 sites by the end of 2008, nearly 4,500 by the close of 2010 and more than 6,500 locations by 2012. The typical clinic features a nurse practitioner—supervised by an off-site physician—who treats minor ailments like colds, flu and rashes and provides basic services like inoculations and physicals.

What makes retail clinics such a popular option? Convenience tops the list with short wait times and extended hours at nearby locations with the added benefit of free parking and efficient one-stop shopping. Not only can ailing patients combine doctor visits and pharmacy trips, but they can also purchase grocery items, all under one roof. For un- or under-insured consumers, the lower cost ($40–$80 per visit) is a boon.

Vital signs
It may seem counter-intuitive to carve out 200–500 sq. ft. for non-merchandise purposes, but clinics are proving both a sustainable and profitable trend for retailers. Clinics build customer loyalty, and in turn immunize the format against competitive threats.

Clinics create an additional consumer touchpoint within the store and position the outlet as a destination, increasing trip count among high-value consumers. Perhaps most notable, the extremely high satisfaction rate among consumers who have patronized an in-store clinic generates a healthy halo effect, surrounding the retailer with an aura of goodwill.

Location logistics
Apparently, in-store clinic appeal is universal, crossing gender, age and income lines. While low-income households represent more than their fair share of total clinic visits, they prefer drug store locations over grocery store sites. Conversely, high-income households log the most in-store clinic visits at grocery locations.

When larger families (5+ persons) are ailing, they stop by a drug store clinic more frequently than grocery or mass merchandiser sites. Single person households shy away from in-store clinics, under-indexing for all format types. In-store clinics at grocery are getting a boost from bustling families with children under six whose limited time spikes the appeal of one-stop shop convenience.

Purchase patterns
Shoppers feeling under the weather can push some category sales over the top as they seek to manage chronic conditions. For example, NielsenHealth reports that people with heart disease are more likely to buy mineral supplements (41% more), protein supplements (9%), multi-vitamins (16%) and remaining vitamins (35%) compared to the average customer. And obese shoppers are 34% more likely to buy diet aid purchases than the average household.

Menopausal women control symptoms by taking mineral supplements (40% more likely to purchase than average) and vitamins (24%). Consumers keeping an eye on cholesterol count are more likely to buy mineral supplements (33% more than the typical household), vitamins (26%), B complex vitamins (22%) and protein supplements (12%). Lactose intolerance sufferers turn to liquid and powder tonics (84% more than average) and ingest more than the usual quantities of mineral and protein supplements, B complex, children’s chewable and multiple vitamins.

Prescription for success
Like any other strategic initiative, retailers and manufacturers can maximize results by identifying the right stores and right markets—those itching for a health care alternative. Prior to launch, diagnose the categories and brands likely to benefit most from the clinic presence. Develop a protocol designed to attract consumers to the store and keep them longer once on premise. Setting up in-store brand marketing programs can help manufacturers drive awareness and help retailers drive total store sales.

Evaluate marketing and advertising expenditures to leverage clinic appeal and optimize inherent cross-promotional opportunities across categories and aisles. Given the unique and overwhelming positive experiential aspects of the clinic, consider extending the feeling through additional in-store educational programs.

Flatline potential
Despite overwhelming consumer response and outstanding reported experiences, the potential exists for in-store clinics to flatline under regulatory pressures. Presently, oversight varies from state to state, especially with respect to the level of physician involvement with the retail clinic. Medical associations constitute a powerful lobbying force, with in-store clinics resting squarely in their sights.

A headache-inducing number of discussions surrounding the issue of tobacco and liquor sales in stores with clinics have cropped up. Licensing is another area open to debate with ownership and franchise situations vying for dominance. Insurance companies have entered the fray, with many opting to reimburse or lower co-pays if in-store clinics are patronized.

While the issues are varied, there is no denying that in-store clinics represent a potential lifeline for ailing, uninsured consumers and a cure for weak sales.