Over the course of the next 10 years, with their guaranteed 15% profit margin and government-fixed selling prices, most pharmaceutical wholesalers prospered.
National Companies such as Macarthys Ltd, Sangers Ltd, and Barclays Ltd, all built extra new warehouses, and independent, regionally based wholesalers such as Evans, Gadd Ltd (based in Exmouth) flourished. All of these activities increased competition for UniChem, but there always seemed to be plenty of business for all.
The number of pharmacies in Membership grew steadily, passing through 1000 in 1955 and by 1960 had reached 1400. However, by that date there were the first rumblings of complaint over the sanctity of member’s “radius rights”. This restrictive policy seems to have bedevilled the efforts to recruit new members, and, as a result, it was quietly withdrawn in the mid-1960’s.
Annual Sales turnover rose steadily throughout the period, rising through £1,000,000 in 1955, £1,500,000 in 1956 and over £2 million by the end of the decade.
Annual Profit and the consequent member’s rebate kept pace with this growth. By 1955 the company’s profit was £28,000, and in 1956 it reached £65,000, with £14,000 given back to the members. By the end of the decade, the £100,000 barrier had been breached, with over £30,000 returned to the members. These were boom times indeed.
Several changes were introduced during the 1950’s to enhance the product range being offered. A shared delivery service was inaugurated with the manufacturer, John Bell, Hills & Lucas, which resulted in the supply of that company’s “galenical” products, at very competitive rates. These were fixed formulae compounds, used in the dispensing of mixtures and ointments etc. Additionally, supplies of many popular generic tablets with standard formulae, such as aspirins, were brought in bulk to Broadwater Road, where they were repacked, and marketed to the members, again at very competitive prices.
The over-the-counter (OTC) product range was enhanced by the addition of well-packaged, good quality medications, such as throat pastilles and indigestion tablets. Developed for UniChem, and marketed exclusively to the members, the first lines, such as the analgesic “Anti Pain” and the effective indigestion cure “Duogestan”, were joined by an antiseptic skin cream “ Epomol”, and other lines to be sold under the brand name “Valkem”. Good quality point-of-sale material was supplied free. Many of these lines became very good sellers, so much so, that some pharmacists who were not UniChem members tried, unsuccessfully, to obtain them.
Also in this 10 year period geographical expansion in the area served by UniChem took place. As early as 1957, it had been seen that a good opportunity existed to capitalize on the success achieved by a somewhat tenuous van service into East London.
Walthamstow was chosen as the best site for the new warehouse, and it was fully opened and established by 1958, with its vans soon pushing far out of London, and into East Anglia, as far as Norwich.
In early 1962, the van routes operating from the original warehouse at Broadwater Road, were extended into much of the Southern Home Counties, reaching out as far as the Kent and Sussex coasts. Unfortunately, once again, the extra turnover generated by this expansion caused ever more severe space pressure at this warehouse.
In order to ease this pressure, the Head Office staff were moved to the sixth floor of a new office block at Morden in Surrey, called Crown House. This meant that the company could at last have a properly fitted out Board Room. There they were to remain until 1983.
The geographical growth from Broadwater Road had proved to be such a success that it was decided to look for more expansion, and this time into virtually virgin territory.
In 1962, a site was identified in Nuneaton, in Pool Road, and a warehouse was “purpose built” for the company. This would give the company access to the cities of Birmingham, Coventry and Leicester, each of which was expected to produce a share of new members, who were keen to join in and exploit the UniChem co-operative principle.
The warehouse was opened in early 1963, and proved to be an immediate success.
A year later, in 1964, a different type of growth took place when, after another issue of UniChem shares had raised £34,000, the company purchased 51% of the capital of two small co-operative wholesalers in Leeds. The two companies, PDS and PAS were merged to form UniChem (Northern ) Ltd., using the PDS warehouse. The company later bought out the minority shareholders.
The ex-PDS warehouse in Chapel Lane was renamed UniChem Leeds, with John Talbot as its first manager. Although the building was very old, and not particularly suited to its purpose, it was to continue to give good service, until 1984.
In 1963, a 25th Anniversary Dinner was held at the Hilton Hotel, and every prospect for the company seemed to be bright, but the boom times were coming to an end.
The number of pharmacies in Membership had continued to grow, reaching 2,500 in 1963, and it had become very obvious that the old warehouse at Broadwater Road could no longer be stretched.
Larger premises were essential. Accordingly arrangements were made to acquire a new modern warehouse at New Addington near Croydon, Surrey, together with a small satellite site at Kingston, also in Surrey.
The Broadwater Road and Fortescue Road warehouses were both sold, but building work needed at the two new premises was not completed on time. Therefore the transfer of stock and staff could not be carried out smoothly. This in turn led to severe customer service problems, which had long-term adverse repercussions. There was a massive loss of goodwill among many of the members, whose accounts had been moved to one or other of the two new warehouses. From their point of view, they had suffered, albeit for the very first time, from indifferent, unreliable UniChem service, and these operational problems were allowed to run on for far too long.
This major setback was the first that UniChem had experienced in the 25 years of its existence, but much worse was to follow. Not only was this further development a heavy blow, but it could not have happened at a worse time.