Majority of operators plan to buy or sell within three years, report reveals
Jonathan Board
A new report has revealed that three-quarters of pharmacy operators plan to buy and/or sell a pharmacy within the next three years.
The report, ‘Pharmacy Market Review 2026’, by specialist business property adviser Christie & Co, also highlighted that 39% of respondents identified acquiring a pharmacy as a key growth opportunity, while the average time from agreeing a sale to completion fell from 36 to 34 weeks in H1 2026.
Buyer demand, meanwhile, remains broad-based, with first-time buyers accounting for 29% of completed transactions and small existing operators accounting for a further 33%.
Informed by Christie & Co’s consultancy data on transactional and valuation activity, alongside insights from operators across England, Scotland and Wales, the report explores the key trends shaping the pharmacy sector. It covers funding, profitability, workforce challenges, Pharmacy First and investment appetite.
The report suggests that while the UK pharmacy market may be showing some signs of stabilisation, many of the sector’s underlying challenges remain. The total number of pharmacies remained relatively static at 13,779 in the year ending 31 March 2026. Independent ownership continued to grow, rising 6% from 2024, while the number of distance-selling pharmacies increased significantly by 8.8%. But Christie & Co said that these gains were modest when viewed against the backdrop of significant structural change, including 886 pharmacy closures since 2022. The report also highlights the continued decline in 100-hour pharmacies, reflecting ongoing operational pressures, changing service models, and sustained cost challenges across the sector.
Recent funding uplifts have supported improved financial performance across the sector. The analysis found that average gross profit margins increased to 34.6% in H1 2026, while EBITDA margins rose from 9.2% to 11.5%. However, challenges remain, with 56% of pharmacy operators reporting that recruitment has become more difficult over the past 12 months and 91% indicating rising staff costs as a key business concern.
Jonathan Board, head of pharmacy at Christie & Co, said: “This year’s report paints the picture of a sector that is becoming more resilient, more clinical, and increasingly attractive to investors. We have seen improved financial performance, strong transaction activity and growing confidence across the market. While challenges remain, particularly around recruitment and operating costs, the sector has continued to adapt and evolve.
“Looking ahead, I expect community pharmacy to continue building on the momentum seen in this report. Demand for accessible healthcare services continues to rise, and pharmacies are well placed to play a greater role in supporting patients in their local communities. As the sector becomes increasingly clinical and service-led, there will be significant opportunities for operators to expand and evolve their businesses. While challenges remain, the direction of travel is positive, and I believe the sector is entering a period of sustained long-term growth.”
