COVID fuels rise in pharmacy values
ALMOST one-in-two pharmacy owners expect the value of their store to increase in the next 12 months, the University of Technology Sydney’s Pharmacy Barometer reveals.
The result marks an 11.9% jump in the proportion of owners who expect pharmacy values to grow, compared to the 2020 Barometer reading, with optimism even higher amongst those predicting they would grow over the next three years (57.1%).
The annual survey of the community pharmacy sector, which was published this week (PD 03 May), found that optimistic owners were forecasting the value of their stores will climb by 14.1% in 2022, and 15.9% by 2025.
The authors of the Barometer noted that when pharmacists were asked to indicate the factors impacting pharmacy values in the year ahead, the “emerging reasons for value change were predominantly linked to COVID-19 and financial subsidies put in place for support throughout the pandemic”.
“Previous year trends that focused on service offerings, population growth, competition, and discounters continue to remain a focus for predicted value change,” the authors said.
“Pharmacies that were successful in implementing services such as the delivery of COVID-19 vaccinations have demonstrated the success of integrating professional services into the pharmacy business model.
“Many consumers have become sensitised to the increased service provision available through pharmacy during the pandemic, ultimately resulting in increased pharmacy value.
“For pharmacies projecting value decreases, this was attributed to increased competition from discount pharmacies, discounting prices, COVID-19 and online sales, with it appearing CBD pharmacies and those located in shopping centres to have been more directly negatively impacted by COVID-19 lockdown restrictions.”
Former Head of the UTS Graduate School of Health, Emeritus Professor Shalom ‘Charlie’ Benrimoj, believes that the Seventh Community Pharmacy Agreement was also a factor inspiring confidence in the value of pharmacy businesses.