The pharmacy market is “very good and strong” and healthier than other business markets, according to property brokers Christie & Co.
Speaking at PharmacyForum in Spain, Christie’s medical head of valuation Christopher Vowles said earnings before interest, taxes, depreciation and amortization (EBITDA) multiples are higher and “a lot better” compared to the retail, hotel and care markets.
“EBITDA margins have gone up a little bit this year, around 9-10% across all types of businesses so, it’s generally positive,” said Vowles.
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He praised the pharmacies “moving their business forwards” by delivering add-on services that “add value to the bottom line you wouldn’t get from NHS services”.
“You’ve got to be active, do the services, link with the GPs. It’s about what you can do with the turnover you’ve got to make it stronger to get that EBITDA multiple to 15 or 18%,” he said.
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And despite not knowing what the pharmacy funding settlement will be, Vowles said pharmacy remained “in a good place at the moment” after a steady year.
“If we didn’t have the market we’ve got where demand outstrips the supply of pharmacies, then I’d have something different to say. But there’s always somebody there to buy it.
“From what we hear, things look good.”
Growth and staff costs
Vowles also shared data from the brokers’ sentiment surveys, with pharmacy professionals expecting growth across several key areas in the next year.
He said 59% anticipate growth in dispensing weight loss medication, with 63% also backing other private services.
And 52% predict growth in Pharmacy First services, while 45% also predict growth in dispensing items.
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Only 15% were not expecting any growth, and 8% expect a decline.
Vowles explained one “negative shift” came through rising wage costs, prompted through a rise in national insurance contributions.
Over the next 12 months, 41% said staff and energy costs are the biggest challenge they would be facing.
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This was only surpassed by 45% expecting to face cash flow pressures over the next year, with fewer pharmacy owners worried about inflation, recruitment and interest rates.
But wage costs for locums had become less problematic, as Vowles said average locum costs had dropped 7.2% by the first half of 2025.
“You’ll remember during Covid there was ransoming from locums and prices went up, but those have come back to a reasonable figure,” he added.
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It comes after Christie’s market review in October revealed 37% of “over 7,000 pharmacy professionals” surveyed have plans to buy a pharmacy in the coming three years, while 35% plan to sell one and 9% plan to do both.
It also found first-time buyers made up 27% of Christie & Co’s transactions in the first half of this year, while 18% of transactions were to independents, 25% were to small groups (two to 10 branches) and 26% were to regional multiples (11-50 branches).
And Christie & Co’s head of pharmacy Jonathan Board sat down with C+D to talk trends, priorities for first-time buyers, and how the next funding deal will impact the market.
