the next growth engine for pharmacy is relationship, not retail
After years of real-terms cuts to NHS funding, many community pharmacies have relied on retail and private income to supplement core NHS payments – and, in some large chains, retail sales have been used to subsidise the pharmacy side of the business. But the next stage of growth depends on something deeper: the future belongs to those who turn transactions into relationships.
Pharmacy has always been a very human part of the health system, and that proximity now holds the key to long-term relevance. Success will come from creating more meaningful, trusted connections with patients and communities.
what’s changing
The government’s new 10-year ‘Fit for the Future’ health plan – together with the upgraded NHS App and its upcoming ‘My Health’ tool – is intended to change how people access and manage their care. Millions will soon have a daily digital relationship with their health data.
At the same time, wearables and home diagnostics are setting new expectations. People now want care that is joined up, personal and continuous. NPA research shows that half of UK adults visit a pharmacy every month and many want more proactive digital support. The relationship already exists; it simply needs to be recognised and strengthened.
the risk
Relying on retail margin to meet short-term pressures risks narrowing the role of pharmacy to a place of purchase. When customers are trained to think like shoppers, price becomes the only language that matters. If NHS platforms and private health technology firms become the main point of contact for everyday health, pharmacy may lose its direct relationship with the public. Once that happens, no amount of retail expansion will recover the trust that was given away.
the opportunity
Pharmacies already hold one of the strongest health networks in the country. The opportunity now is to reinvest retail gains into digital, clinical and relationship capabilities that make every interaction count.
Right now, four priorities stand out:
Build a single, integrated view of the customer across retail, dispensing and digital services.
Redefine loyalty from points to participation, rewarding engagement rather than spend.
Develop digital and clinical capacity to support ongoing health conversations.
Measure growth through trust and lifetime value as well as turnover.
The future pharmacy will be defined by the quality of its relationships. Those who use today’s commercial strength to fund that transition will shape the sector’s next decade of growth. Those who delay may find that while their shelves remain full, their relationships quietly fade.