Independent buyers are snapping up pharmacy real estate following the exit of large groups from the sector.

Specialist business property adviser, Christie & Co, has launched its Pharmacy Market Review 2025 report, which analyses a range of topics relating to the UK pharmacy business market, including market composition, employment challenges, dispensing and services activity, and the appetite of banks to lend within the sector.

And it reveals that, of all its pharmacy sales in the first half of this year, 27% were to first-time buyers and 18% to independent operators with one pharmacy – increasing the number of smaller operators by 6%.

MARKET OVERVIEW

Christie & Co’s report highlights that, as of March 2025, there are 13,732 pharmacies across the UK, which is a 0.6% decrease as 90 have been removed from the registers since March 2024 (GPhC data).

All four countries saw a decline in numbers, primarily due to the high number of closures announced in 2023 from the likes of Lloyds and Boots.

Unsurprisingly, the volume of 100-hour contracts fell to 784, a drop of 6.6% compared with the previous year.

A recent FOI request shows that the majority of operators of these pharmacies have taken advantage of this as a way of reducing their cost base, with 35% of 100-hour pharmacies now trading the minimum permitted 72 hours a week, while a further 40% reduced their hours to between 73-80 hours.

Meanwhile, just 9.6% continue to trade the full 100 hours a week.

Following its divestment and closure programme, which ran throughout 2023 and 2024, Boots saw a decrease in its estate of 5.4% in the year, with the overall numbers having reduced from 2,173 in 2022 to the current level of 1,741 – a 19.9% reduction in its network over the four years.

The majority of these disposals have been acquired by the independent sector, increasing independent operators by 6% cent.

OPERATIONAL REVIEW

Christie & Co’s analysis of its transactional and valuation data for the last 12 months highlights changes in gross profit margins, wages, locum margin, and EBITDA margins.

Between 2024-2025, the average combined gross margins increased by 0.9%, to 32.8%, which is more than offset by the costs associated with running the pharmacy.

For example, from 6 April 2025, owners saw a rise in their National Insurance contributions, from 13.8% to 15% on employee earnings above the secondary threshold, decreasing from £9,100 to £5,000 per year.

The Employment Allowance has also increased, from £5,000 to £10,500, and the £100,000 eligibility cap has been removed.

Locum rates have decreased by an average of 5.5% throughout the UK. However, there has been a 2.6% increase in locum costs as a percentage of wages.

Last year, overall wage costs held firm at 16%. However, this will continue to be negatively impacted by the National Insurance contribution increases.

With the ongoing cost pressures experienced by pharmacy operators, it was no real surprise that EBITDA margins fell again, showing a decline of -0.9%, to 9.2%.

SUPPLY AND DEMAND

27% of the Christie & Co deals in the first half of 2025 were to first-time buyers, 18% to independent operators (one pharmacy), 25% to small groups (2-10 pharmacies), 26% to regional multiples (11-50 pharmacies), and only 4% to large group/corporate operators (more than 50 pharmacies).

This shows that smaller and first-time operators are taking advantage of the many opportunities that exist in the marketplace, which is broadly similar to what Christie & Co saw in 2024.

During 2024 and in the first half of 2025, 76% of Christie & Co pharmacy sales were asset sales, and the remaining 24% were sold on a share sale basis.

While the percentage of sales by way of asset has reduced, it is still higher than Christie & Co has witnessed historically and continues to be due to the larger number of corporate sale divestments in the market.

In the first half of 2025, the average timeline from a sale being first agreed to completion was 36 weeks, slightly longer than in the previous year.

Asset sales dominated sales structures, with the average completion time lengthening to 41 weeks.

While share sales have been fewer in number this year, they have, on average, transacted in just 31 weeks, an improvement on the 33 weeks reported in 2024.

The increased supply of pharmacies on the market has continued, allowing some buyers to secure the purchase at a slightly lower price, resulting in an average of 90% of asking prices being achieved in the first half of 2025, compared with 94% in 2024.

EMPLOYMENT CHALLENGES

As of June 2025, there are 65,743 registered pharmacists in the UK (GPhC data), which represents a 2.2% increase from the previous year.

This growth reflects ongoing efforts to expand the pharmacy workforce, particularly in response to new service demands like the Pharmacy First scheme and the increasing uptake of independent prescribing roles.

However, staffing costs continue to be a key challenge within the UK pharmacy. The median full-time salary for Pharmacists rose by 12.3% in 2024 to £50,853.

Exact ONS figures for 2025 aren’t yet published. However, wage growth appears to have stabilised in 2025, suggesting a plateau after the significant 2024 adjustment.

There are also regional disparities within the ongoing challenges in recruiting and retaining pharmacists in rural and coastal regions, where access to healthcare is more limited and workloads can be higher.

Data pulled by Locate a Locum, which analysed data of over 200,000 locum pharmacy shifts for the period June 2024 to July 2025, found that average locum rates decreased across England, Scotland, and Wales, with the biggest decline in rates in England, at 11.9%.

Meanwhile, rates rose by an average of 5% in Northern Ireland, with Lisburn seeing the steepest rise, of 14.4% year-on-year.

By city, the lowest recorded hourly rates were seen in London at an average of £25.38 per hour (6.6% decrease), whilst the highest were in Inverness, at an average rate of £44.29 (6.7% decrease).

This is the second year that Inverness has sat at the top of the table, reflecting its locational remoteness.

With a combined UK average of £32.67 (5.5% reduction), it is hoped that this will provide some respite to the employment challenges the sector has seen.

KEY DISPENSING AND SERVICES ACTIVITY

According to the latest data from the NHS Business Services Authority, for the 12 months ending March 2025, overall dispensing activity increased by 8.8% compared with the previous year.

Services activity has become increasingly more relevant to a pharmacy’s overall activity, none more topical than the rollout of the Pharmacy First scheme in England, which, since it launched on 31 January 2024, has marked a significant shift in primary care delivery in England.

The service has expanded rapidly and is now available in nearly 10,000 pharmacies across England.

According to NHS Business Services Authority (NHSBSA) data, 4,941,308 consultations were delivered between February 2024 and January 2025.

Of these, more than half (2,735,577) were referrals from GP surgeries or NHS 111, categorised as minor illness or urgent medicine supply.

A report published by the Company Chemists’ Association (CCA) in June 2025 highlights that service uptake varies significantly across regions.

For example, pharmacies in the Black Country delivered over 2.5 times more consultations per capita than those in North Central London.

Over 27% of consultations were delivered in the 20% most-deprived communities, demonstrating the scheme’s potential to reduce health disparities.

SENTIMENT IN THE SECTOR

In July 2025, Christie & Co reached out to over 7,000 pharmacy professionals from across the UK to get their views on a range of topics.

Key findings include:

• 48% of respondents reported a negative outlook, while 52% expressed either positive or neutral sentiment
• 75% of respondents observed an increase in patient demand for NHS items over the past 12 months
• A significant 81% reported an increase in demand for private services within the pharmacy setting
• 41% reported that the Pharmacy First scheme has had a positive impact, 34 per cent a negative impact, and 25% remained neutral
• 14% said that they think that the pharmacy funding announced on 31 March 2025 will ease the pressure felt in the sector, 78% said no, and 8% were unsure
• 65% indicated that recruitment for pharmacy staff has become more challenging over the past 12 months
• 39% reported no change in locum usage, 35% noted a decrease, and 26% noted an increase
• The top anticipated growth areas in the next 12 months are other private services, weight loss medication, and Pharmacy First
• 80% agreed that having a pharmacy website is important. However, of those who have a website, 45% only use it for signposting and are therefore potentially missing opportunities to increase income through either sales or services
• 81% of respondents plan to either buy a pharmacy, sell a pharmacy, or both, in the coming three years
• The most-likely areas for investment are automation and adding consultation rooms to offer additional services
• When asked about barriers to investment, 65% cited market uncertainty as the main factor

Jonathan Board, head of pharmacy at Christie & Co, said: “The past year has been one of continued change for the UK pharmacy sector.

“Against the backdrop of the Department of Health and Social Care, NHS England, and Community Pharmacy England jointly announcing funding arrangements for the Community Pharmacy Contractual Framework for 2024/25 and 2025/26, we’ve seen a further contraction in the number of pharmacy sites across the UK, driven largely by corporate divestments and economic pressures.

“However, the sector has shown remarkable resilience, with many independent and smaller regional operators stepping up to take on these opportunities.

“Looking ahead, I believe the coming year will continue to be defined by a range of opportunities within the marketplace.

“With growing recognition from policymakers of pharmacy’s central role in community care, and the increasing adoption of new and additional/private services, we are entering a period where innovation and investment will be key when it comes to successful business growth.”