Covid-19: Pharmacy to close as essential business feels strain of lockdowns
Friday, 10 September 2021
An Auckland Pharmacy is closing down this month due to significant revenue losses after successive lockdowns.
Takapuna’s North Star Pharmacy manager Joshua Chen said the decline of retail revenues by more than 50 per cent each time a lockdown happens, compounded by ongoing roadworks on Hurstmere Rd, had brought down the business.
Chen said his store had not managed to break even for six months, and it could no longer afford to keep going.
Chen, whose pharmacy relies heavily on retail income, said the government had neglected essential businesses that are struggling to survive despite being allowed to open at level 4.
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Purchasing PPE for staff had further added to their operating costs, he said.
Chen said he was disappointed that there is no rent relief policy to support struggling essential services.
“We [our pharmacy] are a part of the community, and in serving them, we have become an indispensable part of their lives,” said Chen, who is a shareholder and has worked at the store for four years.
Chen said they qualified for wage subsidy, but it was only enough to sustain them. A government subsidy for rent could have saved their business, Chen said.
Lorealle Lam, co-owner of Antidote Pharmacy Group, which runs several stores in Dunedin, said the most recent lockdown had seen an increase in demand for services.
“The phones just don’t stop…every lockdown it’s like that,” said Lam who’d seen triple the amount of calls with people asking Covid-19 and health related questions.
Lam's store Antidote Meridian is offering Covid-19 vaccinations.
However, retail revenues have fallen by more than 40 per cent during the most recent level 4 lockdown.
“In the long term if the smaller pharmacies all shut down, then you’ll risk losing access,” said Lam, who added that she’s grateful for Dunedin’s support for local businesses, but can see how things would be tougher for community pharmacies in Auckland and Christchurch facing more competition from bigger players.
The Pharmacy Guild’s chief executive Andrew Gaudin said while pharmacies enable essential services and Covid-19 vaccinations during lockdown, many community pharmacy owners operate at a financial loss during these times.
“Pharmacies put in place a range of increased safety measures and more medicine deliveries to patients in their own homes.
“This, however, comes at a significant financial cost to pharmacies. Costs are up, retail income is down, and pharmacies are struggling to pay their bills,” he said.
Gaudin said many are paying bills out of their own back-pocket while delivering an essential service for all New Zealanders.
“We think that this is not right and should be fixed,” he said.
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Gaudin said they are working with the government to demonstrate the extent of the unfunded costs during this lockdown and will be seeking government funding to cover these unfunded costs.
He said additional government funding was necessary to ensure a well distributed network of community pharmacies remain open, to enable access for all.
“This helps to keep New Zealanders healthy and well, and out of hospital, therefore reducing the burden on our hospitals in these extraordinary times,” he said.
A Ministry of Health spokeswoman said it acknowledged that it had been another tough time for pharmacies around the country, and thanked them for providing services during the alert levels.
It said during alert level 4 lockdown last year, it undertook a review to explore the need for national support for centrally funded delivery service but received a number of mixed views from the sector.
She said pharmacists who are concerned during these tough times are encouraged to contact their local district health board.