I think it allows you to specialize in a specific field of pharmacy so you will end up with an indepth understanding on a certain type of medication or medications for a special area of diseases, and I know the Kaiser in my town only hire pharmacists who've gone through at least 1 year of residency. Most people who have finished their residencies go on to work in clinical settings.
Specializations include infectious disease, diabetes, oncology, nutrition support, ambulatory care, neurological pharmacy, and so forth.
I haven't entered my first year of pharm school yet, so please correct me if I'm wrong.
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PharmD, RPh
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