PHARMACIES: Office of Fair Trade wants to change licence restrictions

FAMILY-RUN chemists say their future is threatened by supermarket giants if laws restricting the number of pharmacies in an area are lifted.

The concerns follow recommendations by the Office of Fair Trading (OFT) to lift restrictions on the number of dispensing chemist licences.

It means chain stores such as Superdrug and Boots can move into more high streets and use their purchasing power to drive down prices and put rivals out of business.

Sarita Gupta, who owns Geepharm Pharmacy, on Blackheath Hill, said: "This is going to affect us very badly. The superstores will be able to come and open anywhere."

Mrs Gupta says the big companies will undercut small businesses by bulk buying.

Her concerns are shared by mother-of-two Vilas Totty, proprietor of Meridian Pharmacy, in Greenwich Church Street.

She said: "I just hope this does not happen. It is very upsetting. We have been here for 25 years. Our customers rely on us."

Mrs Totty says smaller pharmacies build up relationships with their clients, providing a service which would be lost if chain stores took over.

She said: "My husband runs a chemist in Charlton. If he closed people would cry their eyes out.

"We go out of our way to deliver to people who are ill. We have time for people. Big stores don't do that."

But the OFT insists consumers will benefit from lower prices.

OFT director general John Vickers said: "These regulations restrict competition and choice for consumers, impose a regulatory burden and limit the ability of businesses to respond to customer demands."

A spokesman for Superdrug, whose store in Greenwich is currently without a licence, said: "We're very pleased about the recommendations."

The Government must respond to the report within 90 days.

January 27, 2003 18:00