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Evidence of global relevance

A mechanism-based toolkit for branch governance in community pharmacy chains: Profit bridge decomposition and portfolio dependency risk

Annual summaries from five Thai community-pharmacy branches in 2024-2025 showed network sales down 3.9% while the gross-profit proxy fell only 1.0% after a 1.47-point margin increase. Eighty percent of positive-SKU profit came from 17.5-23.2% of SKUs. The toolkit informs portfolio management but excludes labour, rent, service quality and the clinical necessity of low-margin medicines.

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Key findings

  • Sales fell 3.9%, the gross-profit proxy fell 1.0%, and margin rose 1.47 percentage points. Branch A gained THB 328,968 from margin/mix, offsetting sales decline; Branch B had a THB 267,325 sales-driven loss. Eighty percent of positive-SKU profit came from 17.5-23.2% of SKUs.
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Why this matters globally

Pharmacy chains worldwide face volatile sales and concentrated portfolios. Mechanism-based decomposition can expose risks hidden by aggregate totals.

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Thai researcher contribution

Siam University researchers built the toolkit from operational Thai community-pharmacy data and bounded conclusions to the five-branch chain.

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Limitations to consider

One five-branch chain over two years limits transferability. Gross profit omits labour, rent and service costs; positive-profit ranking may hide loss-making or essential medicines. Access, safety and patient outcomes were not measured.

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Verify the original sources

International Journal of Healthcare ManagementRead the original article

DOI: 10.1080/20479700.2026.2700353

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