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The number of pharmacies in the UK has increased slightly for the first time in five years while distance-selling contracts in England rose “significantly” in the year ending March 31, 2026, according to a report by Christie & Co.

Drawing on data from the General Pharmaceutical Council, the report said there are 13,779 registered pharmacies in the four countries, 47 more than the previous year.

However, the report warned 886 pharmacies have closed since 2022 because of “a combination of sustained financial pressures from the previous five-year flat funding, workforce shortages, rising operating costs and increasing demand for services”.

“Community pharmacy funding failed to keep pace with inflation and growing workload, while pharmacies faced higher staffing, energy, and medicine procurement costs,” it said.

Of the 11,260 pharmacies in England, 444 were distance-selling contracts, an 8.8 per cent increase on the previous year.

“The distance selling pharmacy (DSP) market entry exemption closed at the end of June 2025, after which no new DSP applications were permitted,” the report said.

“A high number of applications were made before the deadline, some of which were subsequently approved and have since opened.”

The report also revealed just 7.8 per cent of the 100-hour pharmacies in the UK maintain their full hours. That, it said, was a 1.9 per cent decrease compared with the previous year. Some 100-hour pharmacies reduced their opening hours to 72 hours a week thanks to NHS regulations.

Gross margin increased

The number of Boots stores fell from 1,741 last year to 1,734, although it remains the largest pharmacy operator in the UK.

Independents grew, going from 4,030 in 2025 to 4,279 this year, while the number of those with two to five pharmacies remained the same at 2,786.

Christie & Co said its analysis found changes in pharmacies’ gross profit margins, wages, locum margin and earnings before interest, taxes, depreciation and amortisation (EBITDA) margins between 2025 and 2026.

The average combined gross margin increased by 0.7 per cent to 34.6 per cent. 

“Changes to employer costs introduced from April 2025, including increases to national insurance contributions (NICs), are now being fully felt across the sector,” the report said.

“Employers are paying NICs at 15 per cent on earnings above the reduced threshold of £5,000, while the increase in employment allowance to £10,500 has provided some limited mitigation.”

The report said “operators’ locum usage has remained almost static, decreasing by just 0.1 per cent on the previous year” while this year, “overall wage costs have been relatively stable, at 15.8 per cent”.

It added: “With the significant uplift in the community pharmacy contractual framework last year, it was no real surprise that EBITDA margins rose by 2.3 per cent to 11.5 per cent in H1 2026.”

Prescription items dispensed

There were 67,306 registered pharmacists and 28,482 pharmacy technicians as of June 30, 2026.

Using data from the NHS Business Services Authority, the report said the number of prescription items dispensed in the community in England increased by three per cent to around 1.3 billion between 2024-25 and 2025-26.

Community pharmacies dispensed an average of 9,367 items a month for the 12 months ending March 2026. Independents dispensed an average 10,507 items a month, down from 10,817 in 2024-25.

The corporate chains dispensed an average 7,464 items a month in 2025-26, up from 7,232 the previous year. First-time buyers accounted for 29 per cent of pharmacy acquisitions and small existing operators 33 per cent of deals. Independent ownership grew six per cent from 2024.