Pharmacy decline in Germany continues: Industry calls for political help

Düsseldorf. The journey to the nearest pharmacy could become a little longer in some places. The number of pharmacies in Germany fell by 238 to 16,803 in the first half of the year – meaning that roughly one in six locations has closed in ten years. Thomas Preis, President of the Federal Association of German Pharmacists (Abda), is calling for political help: "The decline of pharmacies will continue unless there is a very rapid adjustment of fees and a dynamic approach – then this decline in pharmacies can be stopped."

Dynamic adjustment means that pharmacies can pass on rising costs and thus receive more funding. According to Preis, the decline in pharmacy numbers is not only affecting rural areas, but also urban areas. "This isn't just the rural pharmacy—unfortunately, there are more and more neighborhoods in large cities where there are no pharmacies." The number of pharmacies in Germany has been declining for years; according to the Abda (German Association of Pharmaceutical Companies), in 2024 it fell to its lowest level since 1978.

The reasons include cost pressure and difficulties in finding successors when pharmacy owners retire. The lack of earning opportunities is attracting qualified people to industry or hospital pharmacies, complains the ABDA.

ABDA CEO Preis also finds it alarming that a good 240 main and individual pharmacies closed in the first half of the year, compared to only 23 new openings. The number of branches is also declining.

Brick-and-mortar pharmacies are also coming under pressure from online pharmacies such as DocMorris and Shop Apotheke. These competitors, which rely on online orders and lack local locations, view the development as less dramatic. The decline in brick-and-mortar pharmacies does not jeopardize supply, as the closures disproportionately affect areas with high pharmacist densities, according to a paper by the European Association of Online Pharmacies (EAEP). There is no need for "scaremongering."

In their coalition agreement, the CDU/CSU and SPD agreed on stabilization measures for the industry, including improvements in remuneration. This is one reason why pharmacists' concerns are easing somewhat. In a representative online survey of 500 pharmacy owners, around 42 percent stated that they expect somewhat or significantly worse economic development in their location over the next two to three years. In the same survey in 2023 and 2024, the figure was approximately 63 percent each.

Around 31 percent answered the question in this year's survey with "significantly better" or "slightly better," compared to 18 percent a year earlier. The rest expect the economic situation to remain unchanged. The coalition of the CDU/CSU and SPD sent a positive signal in its coalition agreement, Preis said, but now it must deliver. "The mood can change again very quickly."

Health Minister Nina Warken is expected to attend the German Pharmacists' Day, which begins on Tuesday in Düsseldorf. Pharmacy owners hope the CDU politician will provide more concrete details on the federal government's future course of action.

RND/dpa