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New entrants to the pharmacy market are still eager to buy their first business despite the sector’s chronic financial challenges, a new report from broker Christie & co indicates. 

The broker’s 2025 market review, published today (October 7), also reveals that the gap between asking prices and final sale amounts has continued to grow this year.  

The reveals that 27 per cent of pharmacy sales handled by the company in the first six months of this year were to first-time buyers.

Eighteen per cent of sales were to contractors owning just one another pharmacy, while 25 per cent were to small groups and 26 per cent to regional multiples. Just four per cent of sales were to corporate owners with over 50 branches.  

The report argued that this shows “acquisitive and agile smaller and first-time operators” are on the march as new opportunities open, for example a 5.4 per cent reduction in the number of Boots-owned branches between 2024 and 2025 (the multiple now owns around 1,700). 

The number of pharmacies coming on the market in the first half of this year has given “some buyers the opportunity of securing the purchase at a slightly lower price,” said Christie & Co.

Pharmacies went for an average of 90 per cent of their asking price between January and July this year compared with 94 per cent the year before, it explained. 

The broker’s analysis shows that as a result of the new funding deal in March there has been a modest 0.9 per cent increase in gross profit margins, which now stand at 32.8 per cent.

However, this has been “more than offset by the costs associated with running the pharmacy,” in particular rising wage bills due to the higher minimum wage introduced in April this year and changes to employers’ national insurance contributions. 

A survey of 7,000 pharmacy professionals carried out by Christie & Co this summer found that 48 per cent had a negative outlook for the future, with just 14 per cent saying they felt the 2025-26 funding arrangements announced in March would do anything to ease the sector’s pressures.

And while many respondents said they would like to invest in areas like automation or adding more consultation rooms for private services, 65 per cent said market uncertainty is a key barrier to investment. 

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

“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 or private services, we are entering a period where innovation and investment will be key when it comes to successful business growth.”

Read more: High street pharmacies ‘closing valuation gap’ with GP-based rivals