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Chapter 6: Key Implementation Points of OMO in Drugstore Retail

  • Apr 14
  • 3 min read

In drugstore retail, OMO (Online Merges with Offline) is defined by how effectively retailers connect high-frequency store visits with integrated demand across health products, daily necessities, and food. Unlike home improvement stores, which support large, project-based purchases, drugstores are embedded in everyday life. Their role is to enable customers to purchase “anytime, immediately, and habitually.”

In this context, the integration of apps, e-commerce, and physical stores is not optional—it is essential. Leading chains such as MatsukiyoCocokara & Co., Tsuruha Holdings, Sundrug, and Cosmos Pharmaceutical are strengthening this integration to build continuous customer engagement.



1. MatsukiyoCocokara: App-Driven OMO for Pre-Visit Preparation and Repeat Purchases

MatsukiyoCocokara & Co. has positioned its app as a central platform connecting pre-visit, in-store, and post-visit behavior. Its integrated reports highlight the consolidation of customer data, e-commerce, and app functionality as a core growth strategy.

A key feature is the ability for customers to check in-store inventory and pricing before visiting. This reduces uncertainty and encourages store visits. In earlier initiatives, the company introduced systems enabling real-time inventory and price checks linked to store locations, demonstrating an early form of OMO integration.

The result is a continuous cycle:

  • Before visit: Check inventory, prices, and promotions via app

  • During visit: Purchase and consult in-store

  • After visit: Prepare for next purchase through app engagement

This cycle is particularly effective in a category where repeat purchases are frequent.



2. Tsuruha Holdings: Integration of Pharmacy, Daily Goods, and Digital Platforms

Tsuruha Holdings has built its OMO model by integrating dispensing pharmacy services, daily goods, and digital tools. The company offers a wide product range—including pharmaceuticals, health foods, cosmetics, and daily necessities—while simultaneously expanding digital capabilities such as apps, cashless payments, and prescription management.

A notable feature is the integration of prescription services with digital platforms. Customers can manage prescriptions, reservations, and health information through apps, while also receiving recommendations for related products such as supplements or hygiene goods.

This creates a unified flow:

  • Prescription → Store visit → Additional purchases

By connecting medical needs with everyday consumption, Tsuruha transforms stores into comprehensive lifestyle hubs rather than standalone pharmacies.



3. Sundrug: OMO Customer Experience Through App and Store Integration

Sundrug emphasizes the integration of digital tools with in-store customer service. Its app provides functions such as coupons, product information, and prescription-related services, acting as a bridge between online engagement and offline interaction.

The company also promotes digital transformation in its pharmacy operations, including online prescription handling and reduced waiting times. These initiatives reflect a broader industry trend toward combining healthcare services with retail convenience.

Sundrug’s approach highlights an important evolution of OMO: not only connecting channels, but enhancing the quality of in-store service through digital data.



4. Cosmos Pharmaceutical: Community-Based OMO Through Store Networks

Cosmos Pharmaceutical takes a slightly different approach, focusing on its extensive physical store network and regional presence. With a large number of stores nationwide, its strength lies in proximity to customers.

Rather than relying heavily on complex digital ecosystems, Cosmos uses apps and digital communication as entry points to nearby stores. Customers receive information such as promotions or product availability and then visit local stores for purchases.

This model reflects a practical form of OMO:

  • Digital → Awareness

  • Store → Purchase

The effectiveness of this approach is supported by the scale and density of its store network.



5. Data Utilization: Designing Repeat Purchase Cycles

A key characteristic of OMO in drugstore retail is the use of data to design repeat purchase behavior.

Across companies such as MatsukiyoCocokara & Co., Tsuruha Holdings, Sundrug, and Cosmos Pharmaceutical, customer data—such as purchase history, visit frequency, and app usage—is used to:

  • Predict future purchases

  • Deliver targeted promotions

  • Optimize store layouts and product placement

Because drugstores deal with frequently purchased goods, OMO is less about one-time transactions and more about continuous engagement and habit formation.



6. Conclusion: OMO in Drugstores as a “Repeat Loop Design”

OMO in drugstore retail differs fundamentally from that in home improvement stores. Instead of supporting project-based consumption, it is designed around daily life repetition.

Apps, e-commerce, and physical stores work together to create a seamless loop:

  • Pre-visit preparation

  • In-store purchase

  • Post-visit re-engagement

Companies like MatsukiyoCocokara & Co., Tsuruha Holdings, Sundrug, and Cosmos Pharmaceutical each implement this structure differently, but all share the same goal: embedding themselves into customers’ everyday routines.

In this sense, OMO in drugstores is not simply about channel integration—it is about designing the consumer’s daily life cycle.



References

Drugstore Companies and Digital Strategies

Tsuruha HoldingsCorporate Information / Digital Strategyhttps://www.tsuruha-hd.com/company/group/groupinfo/

Privacy Policy (App Data Usage)https://www.sundrug.co.jp/privacypolicy

Cosmos PharmaceuticalOfficial Websitehttps://www.cosmospc.co.jp/

Industry Context

EU-Japan Centre Report (Retail Structure & Drugstore Role)https://f2f-project.eu/wp-content/uploads/2022/11/Convenience-stores-and-drugstores.pdf 

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