Sainsbury’s Pharmacy Chain Makes Switch To LloydsPharmacy

Sainsbury’s 281 pharmacies officially became LloydsPharmacy branches yesterday over a year on from the £125m takeover deal agreed by the supermarket and Celesio UK.

The deal had been held up by an investigation by the Competition and Markets Authority (CMA) which finally gave its go-ahead at the end of July after it was agreed that LloydsPharmacy must sell pharmacies in 12 areas to alleviate competition concerns.

Overnight on 31 August, 277 of Sainsbury’s in-store pharmacies received new counter and shelf edge PoS materials and all 2,500 pharmacy staff were given new uniforms and name badges. Four hospital pharmacies have also been transferred as part of the transaction.

The Sainsbury’s pharmacies have been linked to a ‘buddy’ LloydsPharmacy store to provide operational support.  Each store will also be supported by an Area Manager and an Integration Coach to ensure that their transition into the LloydsPharmacy business is a smooth one.

New pharmacy bags and labels has already been introduced whilst a programme of rebranding the pharmacies and introducing the LloydsPharmacy service-led approach has begun. This process is expected to take around eight months.

LloydsPharmacy Managing director Cormac Tobin said: “I’m delighted that today we can officially welcome our new colleagues from Sainsbury’s as they become part of the Celesio UK family of businesses and make a wonderful addition to our LloydsPharmacy retail network of stores.

“Sainsbury’s is a fantastic fit for us, we share similar values and aspirations and we are both passionate about excellent customer service and making a positive impact on the communities we serve. Together we will create even greater opportunities and give our customers and patients compelling reasons to come back to us time and time again.”

NAM Implications:
  • With a near 20% increase in store numbers and access to Sainsbury’s store traffic, a win for LloydsPharmacy
  • While Sainsbury’s are bound to gain from an instore pharmacy presence optimising some space and driving store traffic…
  • Scope for instore initiatives targeted at this special audience?