Independent, Chain Pharmacy Turnover Reflects Retail Business Churn

Churn rates are established to determine how often businesses in a specific market open or close. With significant churn in the retail pharmacy industry, independent and chain pharmacy businesses experience similar turnover rates to other retail industries—despite these retail pharmacy storefronts also being community health care destinations.

“When we think about treating these businesses as retail businesses, that may sound all well and good for grocery or for a clothing store or a general supply store,” Joey Mattingly, PharmD, MBA, PhD, associate professor and vice chair of research at the University of Utah College of Pharmacy, told Drug Topics. “But in the case of pharmacy, we are health care providers as well. We've led studies that look at things like medication adherence after a closure actually can drop and it can hurt patients.”

Despite discrepancies between retail businesses and pharmacy locations, there are significant turnover rates in US pharmacy that’s causing health care leaders, policymakers, and decision-makers to take notice. With pharmacy deserts on the rise, increasing prescription drug costs, and a market becoming more convenient for all consumers, the traditional pharmacy business is not what it used to be.

On the most recent episode of Over the Counter, Mattingly joined Drug Topics to discuss what pharmacy churn rates from the past 15 years mean for patients, pharmacists, and pharmacy business owners.

“It's hard for us to look at this as a retail market, because the closing can actually lead to bad patient outcomes,” he continued. “It's not the same as a general store or sporting goods store closing.”

Learn about Mattingly’s expert insights as he breaks down what pharmacies opening or closing mean for the greater health care community. He also provides insights from his recent article titled “Community Pharmacy Turnover and Context of Openings and Closings by Ownership Type,” and how independent pharmacy businesses differ from larger chains.

Stay tuned for weekly podcast episodes on Over the Counter every Thursday afternoon. Check out our previous episode with Samantha Picking, PharmD, senior director of immunizations at Walgreens. She discussed the recent evolution of immunization services in retail pharmacy during National Immunization Awareness Month.

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Reference

Mattingly TJ, Sahu M, Anderson KE. Community pharmacy turnover and context of openings and closings by ownership type. JAMA Health Forum. 2025;6(8):e251988. doi:10.1001/jamahealthforum.2025.1988