The Pharmaceutical Journal
Vol 276 No 7389 p222
25 February 2006

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Independent pharmacies threatened, say MPs

Independent pharmacies stand only a moderate chance of still being in business in 2015, according to a Parliamentary report published last week.

The report (PDF 510K), from the All-Party Parliamentary Group for Small Shops, says that independent pharmacies are more likely to survive than independent convenience stores/grocers, newsagents and petrol stations, but less likely than independent bakers and rural shops. Pharmacies and post offices are ranked together as moderately likely to survive.

The report notes that one of the factors ranged against pharmacies is the Office of Fair Trading’s view of what constitutes fair competition.

“There are strong concerns over the deregulation of community pharmacies,” the report says. “Implementing proposals put forward by the OFT could result in the number of community pharmacies decreasing dramatically over the next few years. The New Economics Foundation has suggested a decline of 4 per cent per year, the equivalent of one pharmacy per day. The UK can expect such a projection to continue to 2015 unless the market is carefully reformed.”

The report says that competition from large scale grocery retailers introducing pharmacies is likely to result in a halving in the number of local pharmacies.

“This will result in restricted access for the more vulnerable sections of society, such as the sick and the elderly, as these groups struggle to access large format stores, given their reduced mobility,” the report states.

John D’Arcy, National Pharmacy Association chief executive, said: “Small independent retailers face serious issues that urgently need to be addressed. This report highlights that small shops are being squeezed out of the retail landscape. This is not good news for local communities. There is strong evidence that small, local shops such as pharmacies, are often the lifeline for the elderly and mothers with young children, who don’t have access to cars. This is particularly the case in rural areas and small village communities. We urge the Government to take this report seriously and take steps to safeguard the future of independent retailing.”