Three-quarters of pharmacy operators plan to buy or sell within the next three years, reveals new Christie & Co report
Specialist business property adviser, Christie & Co, has launched its ‘Pharmacy Market Review 2026’ report, revealing a sector that is moving forward with growing confidence despite ongoing challenges around funding and workforce recruitment.
The report highlights improved pharmacy performance following recent funding uplifts, rising prescription levels, and the growing adoption of Pharmacy First. Building on record transaction levels in 2024, Christie & Co advised on, agreed or sold 900 pharmacies with a combined worth of £600m in 2025, indicating the continued confidence and long-term prospects of the sector.
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 also includes an exclusive Q&A with Waqqass Sheikh, founder and managing director of Everest Pharmacy, who shares his views on funding, service innovation and the future of community pharmacy.
Market performance and activity
The report suggests that while the UK pharmacy market may be showing some early 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. The number of distance-selling pharmacies increased significantly by 8.8 %. 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. Christie & Co’s 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. However, despite these pressures, pharmacies continue to improve efficiency and expand their clinical and private healthcare services.
Service delivery and changing pharmacy roles
Community pharmacies continue to play an increasingly important role in meeting increasing healthcare demand. The report found that prescription volumes in England increased by 3 % to around 1.3 billion items between 2024/25 and 2025/26, with pharmacies continuing to expand their range of NHS and private services.
Pharmacy First remains a key factor in the sector’s growth. More than 98 % of community pharmacies participated in the scheme, delivering over five million consultations during its first 13 months. The service is now available in more than 10,000 pharmacies across England, helping to improve patient access to care and further embedding pharmacy within primary care delivery.
As part of this year’s review, Christie & Co surveyed more than 7,000 pharmacy professionals across the UK to better understand the trends, opportunities and challenges shaping the sector. The findings point to the continued evolution of community pharmacy towards a more clinical and service-led model, with 69 % of respondents reporting changes in demand for NHS services and 68 % reporting changes in demand for private services.
Investment appetite and market confidence
Investor demand for pharmacy assets remains healthy, supported by the sector’s pivotal role in primary care and the appeal of stable, healthcare-backed income. The report highlights increasing interest from investors, family offices, and healthcare-focused buyers, particularly for integrated primary care assets.
Christie & Co completed more than £1bn of investment transactions in 2025, while sale-and-leaseback deals are becoming increasingly popular as operators look to unlock capital and fund future activity. While there are ongoing obstacles around funding and operating costs, appetite for growth remains strong. The survey findings also reveal heightened confidence in the sector’s prospects. Three-quarters (75 %) of respondents said they plan to buy and/or sell a pharmacy within the next three years, highlighting continued ambition for progress and expansion across the market. In addition, 39 % identified acquiring a pharmacy as a key growth opportunity.
This rising confidence is also reflected in the transactional market, where the average time from agreeing a sale to completion fell from 36 weeks to 34 weeks in H1 2026. Buyer demand remains broad-based, with first-time buyers accounting for 29 % of completed transactions and small existing operators accounting for a further 33 %, indicating the continued appetite for pharmacy acquisitions across the market.
Jonathan Board, head of pharmacy, comments, “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.”
To read the full ‘Pharmacy Market Review 2026’ report, visit: https://www.christie.com/sectors/pharmacy/market-review/