LloydsPharmacy is pulling out of 237 pharmacy sites currently located within Sainsbury’s supermarkets just seven years after buying the instore services for £125 million.
The pharmacy chain has said it is cutting them following a strategic review which it launched “in response to changing market conditions”. Closures will be confirmed on a “branch-by-branch” basis but the process is expected to be complete by the end of 2023.
The move will put more than 2,000 jobs at risk.
A Sainsbury’s spokeswoman said: “LloydsPharmacy is withdrawing pharmacy services from our stores over the coming months.
“We will work with them to ensure customers are clear on how they can access an alternative pharmacy provision to meet their needs.”
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
LloydsPharmacy first took over the instore pharmacy services seven years ago, initially purchasing them from the supermarket for £125 million.
The pharmacy chain is working with all colleagues impacted by the announcement and is “exploring options” for each individual. It did not reveal how many workers would be affected.
Kevin Birch, chief executive officer of LloydsPharmacy, said: “This decision has not been an easy one and we understand that our patients and customers may have questions about how the change will affect them.
“We would like to thank them for their continued support and assure them that we are committed to providing a smooth transition over the coming months.”
Nigel Swift, deputy managing director at pharmacy group Phoenix UK, said the announcement was a clear sign of the “dire situation” facing community pharmacies in England, a direct result of “insufficient government funding”.
“This has to be a wake-up call for government,” he added.
Sainsbury’s has said it expects to be making close to £690m in pre-tax profit when its full-year results are announced in March, as it reports a “record Christmas” with total sales up by 7.1%.
