Pharmexpert Announced TOP15 Russia1Q Drugstore Chains

OREANDA-NEWS. December 21, 2011. The retail segment demonstrates a stoic self-restraint in the face of the trials that have befallen it since the very beginning of 2011. In the first 9 months of this year, stable growth has been recorded among the largest drugstore chains in the Russian market. The market share of ТОР5 drugstore chains reached 10% (cf.: 8.9% the year before). A growth in their concentration may partly be attributed to post-crisis recovery and partly, to the effect of the state regulation. Nevertheless, profitability of the retail business depends to a great extent on the situation in the sphere of tax regulation of the industry; therefore business circles are closely following the debates on the Draft Law “On amendments to specific legislative acts of the Russian Federation related to the establishment of rates of insurance payments to the state non-budgetary funds”, which is expected to significantly improve the situation in the retail sector. If the expected changes regarding the tax burden on the retail business do not occur, then the investment programs of the players who have announced plans of large-scale business development will be under threat. The pharma retail sector, having left behind the effect of the 2008—2009 crisis, is moving on to the next stage of its historic development, and the results will be seen in the near future.

ТОР15 Russia’s drugstore chains by MS (in value terms) in out-of-pocket drug market, Q1-311

*Including franchising drugstores.

**Expert estimation.