Moscow provided with pharmacies – Newspaper Kommersant No. 239 (7440) dated 12/23/2022

The increase in the number of new pharmacies in Moscow in 2022 has practically stopped, follows from the data of the 2GIS service. Over the past 12 months, their number in the capital has increased by only 1%, while in a number of other large cities – up to 20%. Experts attribute the slowdown in the growth of the Moscow pharmaceutical retail to the saturation of the market and the outflow of some solvent citizens. The decrease in the number of new pharmacies may continue next year, experts predict.

By mid-December 2022, there were 4,405 thousand pharmacies in Moscow, which is 1% more year-on-year, the 2GIS service calculated at the request of Kommersant. Moscow has become the only major city where the growth in the opening of new pharmacies has practically stopped. For comparison: in St. Petersburg by mid-December, there were almost 2.3 thousand points of sale of pharmaceutical retailers, which is 7% more year-on-year. According to 2GIS, among million-plus cities, the largest growth dynamics was observed in Rostov-on-Don (by 22.7%, to 1.1 thousand pharmacies), Omsk (by 14.5%, to 705 outlets) and Krasnodar (by 14.4%, up to 964 pharmacies).

The lack of growth in the number of pharmacies in the capital is also confirmed by the CEO of DSM Group Sergey Shulyak. According to him, at the beginning of the fourth quarter of this year, 4.47 thousand points of sale of pharmaceutical retailers were operating in Moscow, which is only 1.4% more year-on-year.

The slowdown in the growth of pharmacy chains in Moscow was influenced by factors that are obvious for other retail segments – the fall in household incomes that accelerated during this crisis and the outflow of some solvent consumers abroad after the announced partial mobilization, explains Nikolay Bespalov, Development Director of RNC Pharma. In addition, according to him, the pharma retail was also negatively affected by the limitation of marketing investments by Western pharmaceutical manufacturers, which became another reason for the decline in the income of pharmacy chains. “In previous years, the latter factor had a significant impact on the development of infrastructure: pharmacies invested the funds that manufacturers paid them into their own development,” adds Mr. Bespalov.

However, according to Sergei Shulyak, there is also a fundamental factor for Moscow: the city has a high saturation with pharmacies. In addition, the expert adds, objects in good locations have long been occupied.

Real estate consultants also note a decrease in demand for rentals from pharmaceutical retailers. This year, the pool of tenants in the Moscow street retail market has changed significantly, from where, along with communication stores, pharmacies have disappeared, which, on the contrary, were the most active in previous years, notes Irina Burenko, Commercial Director of R4S Group.

Pharmaceutical retailers are reluctant to open new points of sale in the capital’s shopping centers, where there is now enough free space. The problem is traffic. According to Focus Technologies, in January-November 2022, the flow of customers in shopping centers of small and medium formats grew by only 5% year-on-year, while in large objects it decreased by 20%. “Today, premises in new residential complexes are of the greatest interest, where you don’t have to fight for traffic,” says DNA Realty CEO Anton Belykh. According to him, now in Moscow new pharmacies are being opened mainly by the 36.6, Rigla and Melodiya Zdorovye chains.

In “36.6” they say that the company’s priority is the opening of new outlets in Moscow. “At the same time, we began to take a more balanced approach to assessing locations, and especially to the amount of necessary capital expenditures,” says Alexander Kuzin, general director of the network. According to him, 36.6 opened 186 new pharmacies across the country this year, entering a new market for itself – Sochi. Rigle declined to comment. In Melodiya Zdorovya, they did not respond to Kommersant’s request.

According to Nikolai Bespalov, there are no prerequisites for a noticeable growth in the next year of pharmaceutical retailers’ sales points either in Moscow or in the country. Sergey Shulyak also believes that the opening of new pharmacies will be slow due to the moderate growth of the pharmaceutical market.

Olga August