By Neil Trainis

Kent local pharmaceutical committee chair and independent contractor Amish Patel has said LloydsPharmacy’s attempt to sell large numbers of branches across the UK is a “good opportunity” for independents and first-time buyers “to consolidate and take market share of an area” but urged them to be cautious before making an offer.  

As LloydsPharmacy embarks on a process of branch sales across England, Scotland and Wales, Patel (pictured) told Independent Community Pharmacist “the right store” represents a great chance for a buyer to make their mark but urged anyone considering making an offer to do their research first.

“Buying a LloydsPharmacy (branch) can certainly be an opportunity for some. However, not all will always be as they seem, for example, expired leases or high rents. It’s worth enquiring and then evaluating if buying a branch meets your needs and circumstances,” he said, adding he is keeping an eye on any opportunities in the marketplace. LloydsPharmacy is believed to be willing to consider offers below the market rate for some stores as it looks to offload branches.

Patel, who owns Hodgson Pharmacy in Kent, also warned prospective buyers to ensure they “have local knowledge around prescribing traits and gross profits” before making a bid for a branch and cautioned the “pitfalls would be the same as buying any pharmacy.”

He said all LloydsPharmacy branches up for sale “will have their own positives and negatives” and reiterated that doing some research “will be essential.” However, he said buyers could reap the rewards further down the line.

“The right store will be a great opportunity for a first-time buyer or as an additional branch being purchased at (lower than) the market rate. This would mean any potential loan repayments will be less, allowing for better profit opportunities,” he said.

However, Patel suggested the widespread sale of LloydsPharmacy branches was not an opportunity for independents to gain an advantage over the multiples.

“I think we need to look past independent versus multiple. Community pharmacies is a sector to itself and needs to work together for the benefit of all contractors,” he said.

“These are seriously hard times and so to think that independents buying Lloyds branches and how it effects market share is the wrong mindset.”