Green Island Boutique Pharmacy in Dunedin has announced it will be closing permanently after nine years of operation.
“This decision has not been easy, but with the current funding challenges facing small independent pharmacies, it has become increasingly difficult to remain sustainable while providing the level of care we have always strived for,” it said.
Pharmacists in Dunedin say that prescription fees and competition from chain stores are increasing pressure on community retailers.
Balmac Pharmacy co-owner Rohini Dias said that most customers preferred shopping at chain pharmacies like Bargain Chemist and Chemist Warehouse rather than independent pharmacies, mainly because chain stores did not charge for prescriptions.
“If you have more of the other chain pharmacies everywhere, probably other pharmacies may have to close,” Dias said.
Balmac Pharmacy’s customers were typically local residents who visited regularly. However, if they could obtain their prescriptions for free elsewhere, some might choose to go there instead.
Dias explained that if many chain pharmacies began to appear, there would likely be no point in continuing the pharmacy anymore.
Balmac Pharmacy was firmly established in the area, with no chain stores nearby.
“Hopefully not, but we never know what will happen later.”
A Dunedin pharmacist who works at both chain and independent stores but wished to remain anonymous said independent pharmacies were facing extremely challenging times.
There was a shortage of pharmacists, and it was also very challenging for independent pharmacies to compete with chain stores offering free prescriptions.
Chain pharmacies also tend to offer better salaries, often “a lot more” than independent pharmacies, and working conditions can be less stressful due to more pharmacists being on duty at once, which helps manage workloads.
Another pharmacy owner, Andrew Hou of Roslyn Pharmacy, said he was not surprised to hear about a pharmacy closing.
“You’ve got funding pressures on the dispensing side, and you’ve got large chains impacting the retail side—it’s difficult, and then you take the current economic environment on top of that.”
Hou said some smaller independent pharmacies in the city would face difficulties ahead because relying solely on core dispensing would no longer provide enough funding. He said it would be challenging to have dispensing as the primary source of income, especially for pharmacies operated by a single pharmacist.