Pharmacity retail pharmacy chain has just opened the 500th store in District 1, Ho Chi Minh City. According to the company founder, the number of stores will continue to rise to 600 over the next month.
This means that the company will open 100 more stores in just one month. Pharmacity representatives said that it should have announced the 100th store from the end of January, but was delayed because of the Covid-19 translation.
Currently, Pharmacity is a leading pharmacy chain in terms of number of stores. The stores are present in 14 provinces. Pharmacity CEO Chris Blank said the company is still pursuing its target of having 1,000 stores by the end of this year. “This is a lot of pressure, but we believe it can be achieved,” CEO Pharmacity said.
Pharmacity was born from the end of 2011 and by 2015 there are 17 pharmacies. Up to now, after 6 years, the company has increased by 30 times the number of stores. The average growth rate of revenue in 2015-2017 reached 30% / year. Pharmacity said that since 2018 alone, this rate has reached over 120%.
However, due to the expansion phase, the company is still not profitable. According to the report on the use of loans through the issuance of bonds, in the first half of 2020, the company reported a net loss of nearly 200 billion dong.
Meanwhile, the race of drugstore chains is still hot. Long Chau drugstore chain has also continuously expanded since it was taken over by FPT Digital Retail Joint Stock Company in 2017.
According to a document expected to be submitted to shareholders at the next 2021 annual general meeting, FPT Retail said it would expand the number of stores to 350 this year, an increase of 150 compared to the number at the end of 2020.
FPT Retail identifies a very potential pharmaceutical market for strong development in the long term. Accordingly, FPT Retail is expected to account for about 30% of the market share of the pharmaceutical retail channel through pharmacies in the next two years. Pharmaceutical products brought in more than 1,200 billion VND revenue for the company, equivalent to 25% proportion.
Revenue has grown but similar to Pharmacity, the pharmaceutical retail segment has not yet brought profit to FPT Retail due to its ongoing investment period.
SSI Securities Company Research Department assesses that the pharmaceutical industry is sensitive to Covid-19, but is gradually recovering. “The Covid-19 epidemic presents a major challenge to the industry’s performance, especially if an epidemic spreads strongly in the community,” said SSI.
“However, healthcare spending is essential and needs are only delayed for a short time. Therefore, the possibility of the industry recovering in 2021 is very high,” SSI acknowledged.
According to Business Monitor International, the value of Vietnam’s pharmaceutical market will reach 6.5 billion USD in 2019. In which, the pharmacy channel accounts for about 30% of the total market value. However, this market is quite fragmented with more than tens of thousands of pharmacies operating across the country.
Source: ndh.vn – Translated by fintel.vn