Before growing in the Country, CVS can close to 25% of shops of Onofre

When the American network CVS, which has more than 7000 stores in the United States, arrived in Brazil in 2013, the expectation was great. It was hoped that the acquisition of Onofre was just the first step of the company. Three years later, however, almost nothing happened. The Onofre, 47 shops today, lost positions in the market and not figure among the ten largest in the country. Before you grow, the business-cio, Bill R$ today 375,000,000, according to found the '' State '', may close up to a quarter of its stores. The acquisition of Onofre cost about 600,000,000 R$-value, at the time, was considered aggressive by analysts – what did market understand that bold bets on Brazil would CVS. However, the process of adaptation to the country would not have been easy. Now, CVS tries to get in arbitration, about 100,000,000 R$ because of business problems that would have been revealed later. The State found that the demand would be hit by the former partners of the network. In recent years, the new management of Olango devoted himself to internal changes – such as the adaptation of business American standards compliance-while CVS has come to consider bold steps in Brazil, which failed to materialize. One of them was the purchase of the Deputy leader of the sector, São Paulo/P, for about $ 6 billion. The State, a source said that ten other networks of small and medium businesses have been evaluated by American, which ended up not closing any business to devote himself to restructuring of Onofre. Reduction. One of the measures still to be taken within this process would be the closure of small stores (of about 100 square meters), representing 25% of the total points of Onofre (or about 12 units). After changing the design of the brand, Onofre now opened some stores – among them of Alphaville-that should represent the future of the network, with about of 300 square meters of area. "The small shops are not profitable, because the cost of keeping them open is almost the same of the larger units," said a source. Abrafarma data, Association pharmacies and drugstores, the shrinking of Onofre process in relation to the competition. In 2011, the company appeared in the 8th position of the national ranking of the entity. Last year, fell to 17th place. For experts, the option of reorganizing the House without growing significantly can be a serious problem. "The total number of stores of Olango is almost equivalent to the number of units that the streak Drogasil opened only between April and June," said Analyst William Assis, Brazil Bank. In a recent report, Ahmed warned that, if the economy''s recovery trend is confirmed, the drugstore sector growth should be closer to the overall result of the market. In 2015 and 2016, due to the crisis, the industry took off and gained a lot of value in the stock market, but as you keep more money in your pocket, the consumer should pay more attention to items that were in the background in recent years, such as furniture, appliances and clothing. Sought, Onofre didn''t interview. He said only that their present actions aimed at a long-term strategy. The family Arede, your of Onofre, did not return the contact of the report until the closure of the issue. At the end of 2015, when the State revealed the dispute, source close to the family said that entrepreneurs saw the request of CVS as unfounded.