Drugstore networks vying for consumers in the Northeast

After supermarket chains and shopping malls advertise the expansion to the Northeast, the pharmaceutical industry also is preparing to intensify the competition for that market. The reason is the increase in the purchasing power of the population, in addition to the growing interest in beauty products.
With investment in new units and distribution centers, networks of Southeast now seek a slice of the market and the movement should affect the network of pharmacies cearense Pague Menos, who leads in the region and today holds more than 10% of the national market. The DPSP Group, which owns the drugstore São Paulo Pacheco, is an example and since last year has expanded operations in Bahia and Recife.
Created three years ago, after the merger of the watermarks that have separate operations, the company has added at least 25 shops in Salvador, where he is with the Sao Paulo drugstore. "We had a very strong presence in the Southeast, mainly in São Paulo, Rio de Janeiro and Minas Gerais.
Now, we begin to act in other squares to have national scope, in medium and long term, "said the President of DCI DPSP, Gilberto Martins Ferreira.
With the projection of closing the year with 140 new stores of the two brands, in addition to 560 new points of sale until 2018, he stated that the focus of the company is in the Northeast and Midwest, where the DPSP went on to act with the Drugstore Pacheco. "Last year we went into Goiânia [GO]. This year, the Federal District ". Today, the company soma with the two brands at least 900 stores in operation-all own.
Regional model
According to him, the retail pharmacist has migrated from a regional model for the national. And the company invests in organic growth, which became more interesting economically, since the Group may be more selective in time to open a new store. "Our market is extremely competitive. And the concern is mainly in the training of officials, which requires greater attention since we're talking about health ".
To target the growing class C of the northeastern region, Flores points out that women are the majority in network units. So much so that 30% of Group turnover already correspond to the segment's sales of beauty and aesthetics. "Even with a low average ticket, the category has an important volume of sales", he concludes.
Asked about the possible sale of the group to the company CVS-industry leader in the United States, which would be prepared to buy the company for $ 4.5 billion, the Executive said that the information is not mere speculation.
It is worth remembering that in February last year, CVS bought Brazilian Onofre, who also denied the negotiations. "We have a sound and highly capitalized company, besides very besieged by investment funds. But we don't think that now. "
Investment
With more than 1,045 stores-60% in São Paulo – the RaiaDrogasil is another company that will invest in the Northeast. With six distribution centers (CD), in four States of the Federation, the company will build a CD to meet the growing demand in the State of Pernambuco.
"It will be the first unit in the region and should be open in Recife. Today, Northeast is fueled by Goiânia CD ", says the President of RaiaDrogasil, Kwesi Inn.
Present in 14 countries, he says that the investments of the company are directed to the Northeast, where the brand acts as a template that caters primarily to classes B and c. the increase of income and the growth in the rate of aging in Northeastern cities were highlighted by the Executive. "Are the main vectors of sales for us. Moreover, so far we haven't had any trouble with it in the region, quite the contrary. "
With projection to open 130 more stores this year, Posada says that at least 80 have already been opened and the other 50 should come on-stream until December. "The most difficult in the process is to find the point and close the contract, but that we've done."
According to him, the two networks controlled by company-Droga Raia, Drogasil has shown growth, but each one in your market. Born in Southeast, the Droga Raia grows harder in the southern region, where it has strong presence in Curitiba (PR). Already the Drogasil is well positioned in States in the Midwest and Northeast.
"This happens due to the positioning of the networks, set when the merger of brands. Drogasil as was very well established in the South of Minas Gerais, then strategically we climb with the scores for the other States, "he said.
Leadership
Against the grain of the competitors is to pay less. Born in the northeastern region, the company claims to be the only drug retail "with presence throughout the national territory", as informed the President of the brand, Subramanian Queiroz.
As the Executive, now the company's investments are targeted to the Midwest, where it recently opened a distribution center that will cater to the region, the South East and the South of the country. "This is the greatest CD of medicines of Latin America, with 400 thousand cubic meters of storage," he said.
With prospects to grow 18 percent this year, Queiroz said at least 80 new shops should be opened by the end of 2014, being the projection of finishing the year with 730 units. "We're going on a turnover of r $ 3.8 billion in 2013 to $ 4.4 billion this year," revealed. For 2015, the network's intention is to reach 830 units.
Another bet of the network are own-brand products, which correspond to 5% of revenues. The category of beauty and hygiene products has grown at a rate of 20% per year. Already selling medicines has grown less, 15% per annum.