Morrisons has reportedly begun to break up and sell off its in-store pharmacy network, marking another major supermarket retreat from community pharmacy against difficult trading conditions.
The retailer has already concluded sales of several branches to individual buyers, according to Reuters, and aims to offload dozens more from its estate of more than 100 in-store pharmacies by early next year.
Several regional independent contractors have taken on small batches of stores, while some other individual branches have been acquired through management buyouts by existing pharmacy staff.
The sell-off is a key part of chief executive Rami Baitiéh’s drive to strip £1bn in overheads from the business.
Owned by US private equity firm Clayton, Dubilier & Rice (CD&R) following a buyout in 2021, Morrisons posted losses approaching £1bn last year. Lidl overtook Morrisons as Britain’s fifth-largest supermarket this year.
Cuts last year included closing four pharmacies alongside 52 in-store cafés, 35 meat counters, 17 convenience stores, and 13 florist kiosks.
Mr Baitiéh, who previously cited an "avalanche of costs" impacting retail operations has said that rationalisation was necessary for the retailer.
Morrisons’ phased exit mirrors actions across the supermarket sector, notably Sainsbury’s closure of its entire LloydsPharmacy concession network in 2023 and Asda’s restructuring of pharmacy hours.
According to recent figures from the National Pharmacy Association (NPA), approximately 1,500 community pharmacies have closed across England since 2017, reducing the physical network to its leanest footprint in two decades amid flat core funding contracts, rising staff expenses, and compression of dispensing margin.
