The document outlines the essential considerations for pharmacists looking to open a drug store, including ideal locations in rural and urban areas, acquisition of premises, proper layout and design types, and legal requirements for licensing. Key factors such as community buying capacity, competition, and traffic flow are highlighted for site selection, while types of drug stores range from traditional to super drug stores with varying customer interactions. Legal documentation and compliance with health and safety regulations, including qualifications and necessary permits, are also emphasized as critical for establishing a successful drug store.

1. PREPARED BY
Mr. V.M.Gaware
Asst. Prof
College of Pharmacy (For Women), Chincholi
Nashik

3. INTRODUCTION:
• After attaining the required qualification as well as experience
of running a drug store, the pharmacist having an aptitude for
business and also willing to invest money has to take one more
step namely to select a suitable location for starting his own
drug store.
• Drug store can be open either in rural or small town or in an
urban area i.e big town or cities.

4. RURAL OR SMALL TOWN:
• It is possible to run a new drug store in a rural area with limited
financial resources.
• These days the nationalized & cooperative banks provide
incentives in the form of soft loans for purchasing the inventories
for drug store.
• In rural area the ideal site for drug store is in market mostly near
clinics of physicians.
• Apart from that the buying capacity of people should be studied.

5. • It is necessary to find out whether the potential customers will
be in position to pay cash for there purchase otherwise the
pharmacist should be prepared for give credit facility to some
of them.
• The ideal location for starting drug store is close to rural area
approximately near petrol pump, railway station or bus-stand

6. URBAN OR BIG CITIES OR TOWNS
• A lot of investment is required for starting a drug store in big
towns.
• Factors like nature of community residing there, probable
number of customers, their buying capacity may be considered
while selecting a suitable site for opening a drug store in big
towns.

7. THE SITE FOR A DRUG STORE
1. Business locality:
• It is preferable to open a drug store in a business locality
becoz the number of people visiting such locality is quite
large.
• If the drug store has good look it can attract a good number
of consumers.
• However the main problem in opening drug store at such
location is huge investment is needed becoz of huge rent and
exorbitant land prizes.

8. 2. Thickly populated residential areas:
• Such type of area is always preferable since people may
prefer to buy medicines during their evening walk.
3. Developing areas:
• Nowdays in big cities new localities are coming up very fast.
• It is therefore an ideal place to start a new drug store becoz
there is no problem of competition.
• The drug store will be able to meet the needs of its
consumers by giving them all types of facilities.

9. 4. Hospitals:
• If hospitals or nursing home does not have its own drug
store and the physicians have a good practice then its an
ideal location to open a drug store nearby.
5. Flow of traffic:
• Avoid locations near traffic signals becoz a shop in the
vicinity of traffic signals has to face parking problem for
cars and motorbikes.
• Usually a road having one way traffic may be avoided.
• A shop located on that side of the road which takes people
to their home has prospects of better sales as people may by
medicines while returning to their home.

10. • Similarly the road circles should be avoided as far as possible
due to parking problems.
6. Parking:
• While selecting the location of drug store in a busy
shopping center it must be seen that there is enough parking
space outside the drug store.
• In big cities there are certain restricted areas where parking
is not allowed to prevent obstruction inn smooth traffic.
• Such areas are not ideal to start a drug store.

11. 7. Drug Store:
• As far as possible there should not be any competitor
already existing near the location of new drug store.
• However if sales potential is good even for another store
then one can consider opening a new one.
8. Near to hotel, school, cinema hall and play ground:
• These location are not preferable for starting a drug store
becoz potential customers are residing quite way from
school premises, play ground and hotels.
• If the site is near restaurant it may create problems of
maintaining cleanliness in the vicinity of the drug store.

12. • In order to establish a new drug store in metropolitan cities the
following additional factors are also be considered:
1. The site should be well connected with various mode of
transport.
2. The site has good surroundings. There should not be congestion
of traffic.
3. The essential services such as bank, post office and warehouse
must be available near the site.
4. The rules and regulation of municipal cooperation or any other
local authority does not come in the way of expansion of drug
store.

13. ACQUISTION OF PREMISES FOR DRUG STORE
• The premises for drug store may be taken either on rent or on a
lease for certain period or purchased straightway.
• The rent amount varies according to the building and locality in
which the shop is located.
• In big cities due to shortage of space the premises are taken on rent
after paying a heavy premium.
• Similarly the cost of place in commercial centre, shopping market
and developed area is always very high.

14. • If the premises is taken on rental basis a legal written agreement
about rent, the period of possession, actual use of shop premises
must be executed with the owner.
• The signed agreement deed should be recorded and registered with
the office of the government concerned with registration of such
deeds.
• The lease has to be renewed after the agreement has expired by
mutual agreement with the owner.

15. It is desirable that before the pharmacist occupies a new
store premises he should observe the following precautions.
• Note down the date of occupancy
• When to pay the installment of rent
• Repair the premises of drug store properly
• Comply with the local rules and bye-laws about opening
and closing time of shops, the weekly closing day of the
market etc.

16. BASED ON LAYOUT AND DESIGN TYPES OF DRUG STORE
1. Traditional Drug Stores:
• These types of drug stores are designed in such a manner that
the entire area of Drug store is exposed to customers.
• Such design has pleasing and professional appearance and is
convenient for both workers and customers.
• It provides opportunity for maximum sales but there are good
chance of theft in such design.

17. 2. Personal service drug store:
• In this type of drug store the whole of the area is not exposed
to the costumers but the customer is required to interact with
the drug store personnel at the service counter.
• During the purchasing process the customer demands an article
and the personnel provides the articles.
• This service and design facilitates maximum interaction
between drug store employee and the customers.
• The success of the drug store depends upon the service
provided by the employee and the friendly behavior with the
customers.

18. 3. Prescription oriented drug store:
• These types of drug store provide a comfortable waiting room
where the customers expected to wait while his prescription is
proceeding.
• In this type of design health related items, drugs and
prescription accessories are displayed in the surrounding area
while orthopedic and surgical appliances are kept in separate
room.
• Cosmetics and gifts are arranged in suitable area of store

19. 4. Pharmaceutical centre:
• These types of center sell medicine convenience articles,
orthopedic and surgical appliances.
• The store sufficient floor space and is properly decorated.
5. Super Drug Store
• Such types of drug store have huge floor area ranging from
5000 to 10,000 with square design.
• The customer have access to all most all the area in the drug
store and can inspect, handle and select article themselves.
• The design in on self service pattern except for the prescription
department were self service is not possible.

20. LAYOUT OF DRUG STORE
The three factors responsible for success of drug store
are:
• Its location and proper layout design
• Its professional management
• Sound financial position.

21. OBJECTIVES OF LAYOUT DESIGN
• To attract a large number of customers.
• To increase the sales of the store.
• To reduce the selling expenses to a minimum.
• To provide customers satisfaction.
• To project a professional image and improve general appearance.
• To minimize the movement of customers within the premises of
the drug store.
• To have proper entrance for incoming goods.

22. • To provide surveillance in order to reduce the chances of pilferage
and theft.
• To have space for reserve stock, office and resting place for the
employees.

23. Storage room for reserve stock
Resting place for staff
Office
Entrance for incoming goods
Racks & Shelves
Working Table
Chair
Space For Freezer
Counter
Customer's waiting Area
Display Window
Phone
Dispensing Section
Flap Door Entrance
DOOR

24. • A Modern drug store should fulfill all minimum requirements as
laid down in Schedule N of D&C Act 1945.
• To start a retail drug store minimum of 10 sq. meter area is
required and for Wholesale drug store same area is required.
• The premises of drug store must be separated from rooms for
private use.
• The outer front of the drug store should be very attractive and built
with innovated construction techniques.
• The material used for construction drug store front is normally
glass, glazed tiles and marbles which is easy to clean.

25. • Generally the Drug stores are located on ground floor of the
building.
• They are usually constructed of cement concrete walls with mosaic
tiles on the floor.
• The internal fittings usually consist of racks or proper storage
cupboards having glass doors, drawers for storing strips, shelves
and proper place for placing refrigerator.
• The counters for store are made from wood having white sunmica
at its top.
• The furniture includes a working table, wooden or steel chairs for
staff and customers.

26. • The floor of the drug store should be smooth and washable.
• The walls should be plastered or tiled or oil painted so as to
maintain a smooth durable and washable surface, adequate lighting
should be provided, preferably tube lights which is concealed.
• Good lighting system provides cheerful atmosphere for the
customers and merchandise stored and displayed appears more
attractive.
• It also helps in identifying the medicines etc quickly and easily &
thus increase the efficiency of the store.
• The name of drug store and insignia of pharmacy in neon lighting
is very attractive.

27. • The fluorescent lighting is also very attractive.
• The illumination should be steady and without any glare and
should not put any strain on the eyes.

28. LEGALASPECTS OF A DRUG STORE
The following are some of the legal requirements to be fulfilled for
opening a retail drug or a wholesale drug store:
1. Minimum qualification
2. Minimum Space
3. Store arrangements

29. DOCUMENTS REQUIRED TO OPEN A RETAIL DRUG
STORE
• License
 A license is required to sell, stock or exhibit for sale or
distribute drugs.
 In order to open a retail drug store in any state the following
documents are needed for a new license:
1. Application (in duplicate) on form 19* of D & C Rules 1945.
one copy is for biological drugs and the other copy for non-
biological drugs.

30. 2. A fee of Rs. 1500/- per license ( Total 3000/-) to be deposited in
State Bank of India/ Government Treasury under specific head
for grant of retail sale license.
3. a) An attested copy of Diploma in Pharmacy from any
institution duly recognized by PCI
b) An attested copy of registration certificate issued by State
Pharmacy Council.
c) An attested copy of Matriculation certificate.
e) Affidavit from the qualified person in case he is an employee
of drug store

31. 4. Affidavit on non-judicial stamp paper, duly attested by First
Class Magistrate by each partner in case of partnership concern
and by the proprietor himself in case of proprietorship concern.
5. A map of retail drug store duly signed by proprietor/ partners
of firm
6. Rent receipt in case of rented premises or an affidavit to that
effect if person himself is the owner of premises.
7. A copy of partnership deed in case of partnership concern.
8. Refrigerator purchase receipt.
• PCI is planning to make mandatory to wear whit coat bearing name of
Pharmacist who is running the retail pharmacy.
• The license is valid for 5 yrs which is to be renewed before expiry

32. DOCUMENTS REQUIRED FOR RENEWAL OF RETAIL
SALE LICENSE
1. Application in duplicate on Form 19 of D & C rules 1945. One
Copy for biological and other copy for non- biological
2. A fee of Rs 1500/- per license (Total 3000/-) be deposited in
SBI/ Government Treasury Challan form in the specified head
for renewal of retail sale license.
3. A late fee of Rs 500/- per license per month or part thereof
4. Original license in case of first renewal and latest renewal
certificate in case of subsequent renewals.
5. Affidavit to be given on non-judicial stamp paper by partner if
any duly attested by Oath Commissioner.

33. DOCUMENTS REQUIRED TO OPEN A WHOLESALE
DRUG STORE (FOR NEW LICENSE)
Attested copy of the experience certificate of minimum of 4 yrs in
sale/distribution of drugs after Matriculation on salary basis.
OR
Attested copy of the experience certificate of minimum of 1 yrs in
dealing with drugs after graduation in any disciple from a
recognized university on salary basis.
DOCUMENTS REQUIRED FOR RENEWAL OF
WHOLESALE LICENSE

34. Separate license are required for retail sale of :
• Schedule C and C1 drugs.
• Schedule X drugs.
• All drugs other than those specified in schedule C & C1 and
Schedule X
• In order to get license to sell, stock or exhibit for sale or
distribute by retail drugs specified in schedule C & C1 an
application is filled in form no. 21* and Form 21 B* is filled to
apply for license to sell Schedule C & C1 drugs by wholesale.
• The drugs which are covered under Schedule X cannot be sold
on retail except on prescription of registered medical
practitioner.