Across England, independent community pharmacies consistently generate higher average dispensing revenue per branch than their chain counterparts. PharmSee's analysis of nine English city centres, using NHSBSA dispensing data, found that independents outperform chains in seven of the nine. The two exceptions — Nottingham and Exeter — tell a different story, and Nottingham's case is particularly instructive.
The national pattern
In most English cities, independent pharmacies earn significantly more per branch than chain outlets. The premium ranges from 15% in Manchester to 63% in Newcastle:
| City | Independent avg revenue | Chain avg revenue | Independent premium |
|---|---|---|---|
| Newcastle | £160,122 | £98,146 | +63% |
| Birmingham | £80,858 | £52,160 | +55% |
| Leeds | £105,623 | £78,766 | +34% |
| Liverpool | £122,397 | £101,146 | +21% |
| Sheffield | £122,674 | £103,355 | +19% |
| Bristol | £99,339 | £83,246 | +19% |
| Manchester | £113,969 | £99,109 | +15% |
| Nottingham | £94,743 | £95,404 | −1% |
| Exeter | £147,241 | £148,894 | −1% |
Source: PharmSee analysis of NHSBSA dispensing data, active pharmacies within 3-mile radius of each city centre, April 2026.
What makes Nottingham different?
Nottingham's pharmacy landscape has several distinctive features that help explain the revenue parity.
The lowest GP-to-pharmacy ratio measured. Within a three-mile radius of Nottingham city centre (NG1 1GF), PharmSee's data shows 64 GP practices serving alongside 85 registered pharmacies — a ratio of 0.75:1. This is the lowest of any city measured, meaning Nottingham has more pharmacies per GP surgery than anywhere else in the sample. For context, Liverpool sits at 1.42:1 and Plymouth at 1.51:1.
A lower ratio means each pharmacy is, on average, competing for a smaller share of the local prescription volume. This competitive pressure appears to compress revenue for all pharmacy types, reducing the structural advantages that independents typically enjoy in less saturated markets.
High zero-revenue branch count. Of Nottingham's 85 registered pharmacies, 19 (22%) show zero dispensing revenue in the most recent NHSBSA quarterly dataset. This can reflect data-reporting lag, temporary closures, or branches that have ceased trading but remain on the NHS register. The effect is to inflate the registered branch count relative to the number of actively dispensing sites.
Revenue distribution. Among the 66 active pharmacies, the average dispensing revenue is approximately £91,433 — below the nine-city average. The median sits at £86,818, suggesting a relatively even distribution without the extreme outliers seen in cities like Newcastle, where one independent pharmacy generates over £450,000 annually.
Why independents usually outperform
In most English cities, independent pharmacies benefit from several structural advantages:
- Location selection: independents can choose sites based on local demand signals rather than corporate portfolio strategy
- Service uptake: owner-operated pharmacies tend to maximise NHS-funded clinical services such as the New Medicine Service (£31.82 per consultation) and Pharmacy First (£15 per consultation)
- GP relationships: long-established independents often hold stronger referral relationships with neighbouring practices
- Lower overheads per site: no contribution to national overhead structures
These advantages appear to be neutralised in Nottingham by the sheer density of pharmacy provision relative to GP demand.
What this means for pharmacy planning
Nottingham's revenue parity suggests a market in equilibrium — or possibly oversupply. For pharmacy owners and prospective operators, the city's 0.75 GP-to-pharmacy ratio indicates limited headroom for new entrants focused on dispensing revenue alone. The opportunity, if any, lies in clinical services and Pharmacy First consultations, where revenue is less directly tied to GP prescription volumes.
For pharmacists exploring where to work or invest, PharmSee's pharmacy analytics and location analysis tools provide detailed revenue benchmarking and competitive density data across English cities and towns.
Methodology
Revenue figures are based on NHSBSA dispensing data as aggregated by PharmSee. "Active" pharmacies are those with non-zero dispensing revenue in the most recent quarterly dataset. Zero-revenue branches are excluded from average calculations. Chain classification follows NHSBSA contractor names. The three-mile radius is used for all city-centre comparisons to ensure consistent urban-core measurement.