Rating of Russian Retail Pharmacies (Q1 2017)
On the one hand, the positive trends of 2016 are strengthening – the demand for pharmaceutical drugs is slowly recovering both as a result of the growing consumption and consumers’ desire to buy more expensive pharmaceuticals. On the other hand, the current positive dynamics are nothing more than a pleasant fact which cannot help the quantitative and qualitative development of the Russian pharmaceutical retail.
The main growth tools that helped the development of the Russian pharmaceutical retail in the recent past are now either completely ineffective, or very close to being inefficient. For example, it is almost impossible to find a place which has enough space and suitable rental conditions with sufficient traffic. For example, it is almost impossible to find a place which has enough space and suitable rental conditions with sufficient traffic. However, global investment programs, such as the Moscow renovation project, open certain opportunities, but even with all the scale of these projects, these opportunities are purely local. In certain regions, for example in St. Petersburg, once large pharmacy chains are closing, which opens similar opportunities. Opportunities for price competition are also close to exhaustion – every self-respecting pharmacy chain has discounter divisions now, and it is more expensive to push the boundaries of the price war in the current conditions.
Meanwhile, the interest to the pharmaceutical market from non-pharmaceutical retailers promises a serious increase in competition in the foreseeable future, so that in the next couple of years the pharmaceutical retail will have to actively look for new drivers for development. However, if the pharmacy projects of X5 and Magnit take a larger scale, it will hardly be possible to do without losses. For now though, the Russian pharmaceutical retail can at least try to minimize these losses.
Read more about rating of Russian retail pharmacies (2016 performance) here: http://rncph.com/news/27_02_2017
Tab 1. Top 15 pharmacies with the largest share in the retail market of pharmaceuticals in Russia (Q1 2017)