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Lloyds disposing of health centre pharmacies

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  • Lloyds disposing of health centre pharmacies

    Is anyone else surprised at Lloyds selling off pharmacies in health centres? There's a report in the C&D this week about three they've sold in the South-East. They've also sold one in Taunton, Somerset which they bought off a pharmacist I knew and that was a pretty good business.
    Perhaps its all down to GPs getting greedy over rents?

  • #2
    Must be the rents.


    • #3
      It will be the lease arrangements. The NHS does not realise that their inflated rents, soft and hard facilities charges are causing their locations to be less attractive to the degree that when 'breaks' are reached the business moves or closes down. There is a big mismatch in expectations.


      • #4
        Business rates have also increased dramatically.


        • #5
          There are two theories. The one in this thread and a second theory that their recent acquisitions make such a loss that other profitable ones have to be sold off simultaneously to raise capital. There are rumours that 25 acquisition stores must be sold off every year.


          • #6
            If the rent and rates are not attractive to Lloyds then they wouldn't be particularly attractive to any independent buyer (or their lenders).

            Not all the pharmacies Lloyds sold are unviable; it is more likely profitable ones were sold to improve balance sheet.


            • BrianA
              BrianA commented
              Editing a comment
              Lloyds don't sell profitable pharmacies that are expected to provide a good RTI in future. They sell failing businesses or those they expect to become unprofitable based on scrutiny of DoH policy. Lloyds and Celesio are part of a profitable global USA business that does not have to sell quality assets to improve balance sheet.