Costcutter adds in-store pharmacies

Costcutter, the 1200-strong high-street convenience chain, is to roll out in-store pharmacies nationwide following the opening of its first outlet this week.

The decision is the result of an alliance between the convenience store chain and pharmacy affiliate Numark Pharmacists. It will see the creation of co-branded outlets ahead of deregulation of the pharmacy sector.

The Liverpool store, which opens on April 17, will carry a full convenience store range, as well as over-the-counter and prescription medicines. More jointly-branded stores are planned later this year, with the next expected to open in Stoke.

In 2001, rival Londis unveiled a similar venture with UniChem, combining store formats from each retailer into a single design.

The deregulation of pharmacy licences, under review by the Office of Fair Trading, is expected to open up the market for big players such as Tesco and Asda to take a significant share of the sector.

Market leader Lloydspharmacy has already taken pre-emptive measures to restructure its business and has identified several hundred potential new sites.

Costcutter is also targeting growth through its petrol forecourt operations.

It already runs 48 stations in partnership with Murco Petroleum, with which it linked in 1997. The chain is looking to increase its presence on the forecourts and has received enquiries from other forecourt operators wanting to develop an on-site retail offer.

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