Selecting the right pharmacy location is one of the most important strategic moves an independent owner will ever make.
The address you choose affects prescription volume, patient convenience, and long-term profitability.
A well-researched site strengthens community health access and ensures your business can thrive for years to come.
This article highlights twelve key considerations to guide your decision, from understanding local demand and competition to evaluating access, visibility, and regulatory requirements.
With these insights, you can confidently select a pharmacy location that meets community needs and positions your independent practice for lasting success.
1. Define Your Trade Area With Data
Understanding exactly who your patients are and where they come from is the foundation of any successful pharmacy.
A simple radius around a prospective address rarely captures how people actually travel. Instead, study the neighbourhood through a variety of lenses, including traffic corridors, public transit, and natural barriers that shape daily movement.
Pair those patterns with local demographic data to measure true client potential and uncover pockets of unmet demand.
Steps to get a complete picture:
- Look at the surrounding areas and communities. Consider how many of those communities are within a 10-15 minute drive to the location you’re considering.
- Pull Census profiles for age 65+, household size, income, and languages spoken to estimate real demand.
- Include transit routes, key roads, and community hubs to see where patients are most likely to visit.
2. Target Proven Demand Signals
Not all communities generate the same level of prescription activity. Areas with higher shares of seniors or residents managing chronic conditions consistently deliver stronger prescription volumes and more frequent visits.
By layering provincial drug program statistics and local prescription trends on top of demographic analysis, you can pinpoint neighbourhoods where healthcare need already exists.
This approach shortens the time required to build a patient base and reduces the risk of opening in a slow-growth market.
- Identify neighbourhoods with a high percentage of seniors and people with chronic conditions.
- Review provincial drug program trends and prescription statistics when available.
- Look for clusters of long-term care facilities or retirement communities that need regular pharmacy support.
3. Prioritize Visibility, Access, and Parking
Convenience is a deciding factor for patients choosing where to fill prescriptions.
A pharmacy that is easy to see, simple to enter, and stress-free to park near will naturally draw more repeat visits.
Evaluate sightlines from major roads, observe traffic flow at different times of day, and consider seasonal factors like snow piles or foliage that can obscure signage.
Pay equal attention to pedestrian access and public transit, since a growing number of patients walk or use buses to reach their pharmacy.
- Confirm strong corner or main-road exposure with clear signage.
- Ensure quick in-and-out circulation and plentiful, well-lit parking.
- Verify pedestrian pathways and transit stop proximity for walk-in traffic.
4. Go Where Care Happens
Selecting a location near healthcare providers creates a natural link between diagnosis and prescription pick-up.
Pharmacies adjacent to medical clinics, diagnostic labs, or hospitals see consistent prescription volume and become convenient “next stop” destinations.
Research local planning documents to see if new medical facilities are in development, as future clinics or outpatient centres can keep your location relevant and busy for decades.
- Identify current clinics, labs, and hospitals within the trade area to see where patient traffic already concentrates.
- Use publicly available health service statistics to estimate how many visits nearby clinics or hospitals generate.
- Identify specialists or allied health services, such as physiotherapy or diagnostic imaging, that could create steady cross-traffic.
- Observe traffic patterns around medical facilities during peak and off-peak hours to gauge daily activity.
5. Audit Competition and Identify White Space
Before signing a lease, take a close look at existing pharmacies to identify gaps you can fill.
Evaluate competitors’ hours, specialty services such as compounding, delivery options, and the languages spoken by staff. This analysis reveals where you can stand out and where demand may already be saturated.
In some provinces, minimum distance rules between pharmacies may also influence your choice.
- Map all nearby pharmacies and note banner affiliation, hours, and service mix.
- Identify opportunities such as extended hours, multilingual service, or specialized compounding.
- Check provincial regulations for mandated spacing between pharmacies.
6. Validate Zoning and Permitted Use Early
Municipal zoning bylaws can derail even the best site plan if not reviewed early.
Confirm that a pharmacy is a permitted use for the property and look for any special definitions, size restrictions, or parking requirements tied to medical operations.
Addressing these details during site selection, not after lease signing, prevents costly redesigns or legal delays.
- Verify permitted use for “pharmacy” in local bylaws.
- Review any size caps or special definitions for healthcare services.
- Check local parking ratios and conditions related to medical facilities.
7. Build for Accessibility From Day One
Accessibility is both a legal requirement and a community expectation. Patients with mobility challenges, parents with strollers, and seniors all benefit from thoughtful design.
Plan for barrier-free entries, wide aisles, and accessible counters so every visitor can navigate comfortably.
Meeting provincial accessibility standards, such as the Accessibility for Ontarians with Disabilities Act (AODA) from the start, saves costly renovations later and signals that your pharmacy welcomes everyone.
- Incorporate accessible parking and a direct, unobstructed path of travel.
- Use clear signage and wayfinding that meet provincial standards.
8. Pressure-Test the Lease Economics
Your lease sets the financial foundation for the entire business. Beyond base rent, hidden expenses and restrictive clauses can erode profitability.
Review every term with a commercial real estate lawyer to avoid surprises and to secure protections that support long-term growth.
- Understand the difference between net and gross leases and clarify additional rent or common area maintenance (CAM) charges.
- Negotiate for exclusive use, co-tenancy requirements, and reasonable radius clauses to prevent nearby competition.
- Include flexibility for future expansion or new clinical services.
9. Use Real Foot-Traffic and Co-Tenancy Signals
Digital tools and field checks provide a true picture of daily activity.
Measure foot traffic during different hours, and look for co-tenants that naturally complement pharmacy visits, such as grocery stores or medical offices.
Strong co-tenancy creates steady shared traffic, helping your pharmacy gain exposure even from patients who did not plan to visit.
- Benchmark daytime population and repeat visit patterns.
- Validate digital traffic counts with on-site observation.
- Identify anchor tenants that create cross-shopping opportunities.
10. Plan for Service Mix and Future Growth
Your location should serve your current operations and leave room for expansion.
Canadian pharmacies are offering more clinical services every year, from vaccinations to prescribing for minor ailments.
Ensure the space can accommodate a full dispensary, consultation areas, vaccination rooms, and secure storage while leaving flexibility for future services.
- Design adaptable areas for private counselling or expanded clinical programs.
- Allow for technology upgrades and new equipment that may require extra space.
11. Consider Rural Access Models Where Allowed
In underserved regions, innovative delivery models can help you meet patient needs while maintaining profitability.
Telepharmacy or remote dispensing, where provincial regulations permit, allows pharmacists to supervise prescription preparation and patient counselling from a central location. This approach expands access to essential medications and advice and may reduce the amount of staff you need on-site day-to-day.
- Assess population size and demand to ensure long-term sustainability.
- Partner with local clinics or community groups to strengthen outreach and trust.
12. Align With Regulatory Path and Timeline
Regulatory approvals can significantly influence your opening schedule.
Each provincial college of pharmacists has its own requirements for accreditation, inspections, and premises standards. Building these milestones into your project timeline protects you from delays and unexpected costs.
- Contact your provincial college early for guidance on submissions and inspections.
- Maintain thorough documentation to streamline the approval process.
Pharmacy Location FAQs
What is the best location for a pharmacy?
The best location combines strong community demand with high visibility, convenient access, and proximity to healthcare providers.
Does pharmacy location matter?
Yes. Location influences prescription volume, patient convenience, and the financial sustainability of the business.
Finalize Your Pharmacy Location Decision with Confidence
Your pharmacy location is more than an address. It is the foundation of your business and a critical factor in community health access. By carefully analyzing trade areas, demand signals, competition, and regulatory requirements, you position your pharmacy to thrive for years to come.
Partner with PharmaChoice Canada today and gain the freedom, support, and expertise you need to choose the right pharmacy location and build a thriving independent practice.
Contact our pharmacy business experts today to learn more.
