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Morrisons has put dozens of its pharmacies up for sale in an attempt to cut costs.

The multiple, which made losses of £381 million last year, has employed property agents to sell some of its in-store pharmacies on branch-by-branch basis.

Morrisons chief executive Rami Baitieh was quoted by LBC as saying the sales were a “necessary part of our plans to renew and reinvigorate Morrisons (following a) challenging period”. It is believed any pharmacies sold will stay open in Morrisons stores but under the new owner’s branding.

Independent Community Pharmacist has contacted Morrisons for more details.

The company’s losses last year were largely generated by high borrowing costs, although Morrisons, acquired by American private equity company Clayton, Dubilier & Rice for £7 billion in October 2021, reduced its borrowings from £3.5 billion to £3.1 billion last summer.

Last year, Morrisons, which has 101 branches in the UK according to the General Pharmaceutical Council’s register, closed four pharmacies as well as 52 cafés, 17 convenience stores, 35 meat counters and 13 florists across its supermarket network following “a wide-ranging review”.

That review, Morrisons said, “identified a number of areas where the costs of operations” were “significantly out of line with usage, volumes or the value that customers place on them”.

CCA: Another stark reminder of huge financial strain on pharmacies

Company Chemists’ Association chief executive Malcolm Harrison told ICP: “Morrisons has made us aware that they are looking to sell some of their pharmacy contracts. This is another stark reminder of the huge financial strain that the community pharmacy sector is under.”

Referencing NHS England’s independent economic analysis last year which showed community pharmacy was operating to a £2.6 billion annual funding shortfall, Harrison added: “The consequences of this adverse funding landscape are clear; since 2017, there had been a loss of 1,476 pharmacies, representing a 15 per cent contraction in the network.

“It is clear the pressures on pharmacies have reached an unsustainable level. Without urgent investment more pharmacies will be forced to reduce hours or close entirely.

“This will not only further restrict patients’ access to medicines and primary care, but it will place even more pressure onto other areas of an NHS that is already struggling.”

The Pharmacists’ Defence Association said it was supporting staff employed in affected Morrisons pharmacy branches and urged those workers to be aware of TUPE regulations which are designed to protect employees who are transferred to a new employer.

Insisting it has “significant experience in supporting pharmacists who go through TUPE transfers”, the PDA said: “Employed pharmacists may want to ensure they have an up-to-date copy of their employment contract and their employer’s staff handbook at home.

“This is good advice to any employee as it can be useful to have these documents to hand in case potential change is announced at the workplace.”