Why Don't Australian Supermarkets Have Pharmacies? (US & UK vs Australia Debate) (2026)

The idea of supermarket pharmacies has sparked a heated debate in Australia, with one leading medical expert calling it 'absurd'. But why is this proposal so controversial? And what does it reveal about our healthcare system? Let's take a closer look at the arguments for and against, and explore the potential implications for patients and the pharmaceutical industry.

The Case for Supermarket Pharmacies

The Grattan Institute's report, 'Future pharmacy: A better deal for patients and taxpayers', suggests that allowing pharmacies in supermarkets could be a game-changer for affordability and accessibility. The report argues that the Pharmacy Guild of Australia has too much power over the pharmacy sector, and that removing restrictions on pharmacy locations, including supermarkets, could lead to lower prices and more convenient services for patients.

Molly Chapman from the Grattan Institute points out that countries like New Zealand, England, and the US have successfully integrated pharmacies into supermarkets, with patients trusting these services and receiving high-quality care at lower prices. She believes that introducing this model in Australia could be an important reform, leading to more affordable medicines and a more efficient healthcare system.

The Case Against

However, Dr Nick Coatsworth is skeptical of the proposal, citing the distrust surrounding major supermarkets as a key concern. He argues that allowing pharmacies in supermarkets would be a step towards 'Americanisation' of our system, and that Coles and Woolworths, Australia's most trusted brands during the pandemic, are now among the most distrusted. He believes that this distrust could undermine the proposal's success, and that strengthening community pharmacies should be the focus instead.

The Pharmacy Guild of Australia has also been vocal in its opposition, arguing that community pharmacies are primary healthcare providers, not standard retail shops. They believe that a professional health environment requires unique clinical governance, and that allowing pharmacies in supermarkets would compromise this. The Guild explicitly rejects corporate deregulation proposals, emphasizing the importance of patient needs and appropriate clinical governance over shareholder returns.

The Broader Implications

The debate around supermarket pharmacies raises deeper questions about the future of healthcare in Australia. Should we be looking to dilute the power of community pharmacies in supermarkets, or should we be focusing on strengthening them? And what does this say about our relationship with healthcare providers?

In my opinion, the proposal to add pharmacies to supermarkets is an interesting one, but it's not a simple solution to the complex issue of healthcare affordability. While it could potentially lead to more affordable prices and increased accessibility, it also raises concerns about the role of community pharmacies and the trust between patients and healthcare providers.

What's clear is that there's a need for reform in the pharmaceutical industry, and the proposal to allow pharmacies in supermarkets is just one of many ideas being considered. As consumers, we need to think critically about the implications of these proposals and consider the broader impact on our healthcare system and our relationship with it.

Why Don't Australian Supermarkets Have Pharmacies? (US & UK vs Australia Debate) (2026)
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