LloydsPharmacy to close branch after NHS Property Services ‘doubles’ rent

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A LloydsPharmacy branch is to close after the property’s rent was doubled by the government-owned management company, the multiple’s parent company has said.

The branch, in the Weston Favell Health Centre in Northampton, is leased to LloydsPharmacy’s parent company McKesson UK by NHS Property Services (NHSPS), which manages more than 3,000 properties, or around 10% of the NHS estate.

Toby Anderson, chief executive of McKesson, said in a statement that the company will have to close the branch on 31 October 2019 “as a result of NHSPS doubling our rental price”.

He said the closure was taking place despite “having shared evidence that even with the current deal we are operating at loss”.

“As a result, we have had to make a difficult decision to close the store, which means we will no longer be providing healthcare services in Weston Favell Health Centre from 31 October 2019,” he added.

Anderson said staff currently working in the pharmacy would be redeployed “in line with suitable vacancies that exist in our other stores”.

A spokesperson for NHSPS told The Pharmaceutical Journal that the “proposed rent increase is due to the fact that the passing rent is not at current market levels for pharmacies”.

“NHSPS works hard to engage tenants and find a solution that works for everyone and, in this instance, NHSPS has proposed alternative terms. This has been turned down by LloydsPharmacy,” they added.

Last updated
The Pharmaceutical Journal, LloydsPharmacy to close branch after NHS Property Services 'doubles' rent;Online:DOI:10.1211/PJ.2019.20206910

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