Pharmacy group to shut 190 stores

Lloyds Pharmacy has confirmed plans to close around 190 “commercially unviable” pharmacies in a move that is expected to result in hundreds of job losses.

The Coventry-headquartered group blamed “changes to government policy” for the decision, which will result in around one in eight of its sites closing.

Cormac Tobin, managing director of Celesio UK, which owns Lloyds Pharmacy, said: “Changes to government policy on reimbursement and retrospective clawbacks over the past two years have gradually made operations at many LloydsPharmacy stores commercially unviable.

“We will be doing all that we can to support our affected colleagues and minimise disruption for patients.”

The £2bn-turnover group, which employs more than 17,000 people, recorded pre-tax profits of £12.8m in its most recent published accounts, for the year to March 2016.

Lloyds Pharmacies are found mainly in community and health centre locations across the UK. It has not revealed which stores are affected by its plans.

Tobin has called on the Department of Health and NHS England to work with the group to “shape a new framework which allows us to invest, innovate and continually improve our service to patients”.

He added: “With pressures in the economic and funding landscape it is vital that we take a leading role in the evolution of community pharmacy, to ensure that our business is sustainable for the future.

“We firmly believe that community pharmacy is part of the solution to increasing capacity in other parts of the NHS.”