This paper presents modern pharmacy activity in the context of its specifics, which it does not share with other retail forms because the pharmacy is both a health institution and a retail store, and pharmacists are both sales saff and pharmaceutical experts. Extensive legislation, demanding logistics, distinctive assortment and distinct suggestiveness of the pharmacist over the customer are some of the specifics covered in this paper. In the part of the paper that analyzes the process of product category management and its implementation in the pharmacy store business, the relationship between the category management process and merchandising is presented, emphasizing the importance of planning the layout of sales space, product display and shelf space. The central part of the paper brings the elaboration of the pharmacy assortment by groups and presents models and criteria for determining product categories, both within groups and independently. The following is an overview of the categories and groups of categories with special emphasis on dietary supplements. The categories and subcategories of dietary supplements, their importance within the pharmacy range and the factors influencing the success of the categories of dietary supplements are described. An empirical study conducted on a sample of five pharmacy stores of the pharmacy chain showed a high degree of application of product category management systems and merchandising, as well as a positive customer response to their implementation. It also pointed out the segments in which there is room for improvement and confirmed the importance and impact of the category management process on the success of the pharmacy business as a whole.