Monday, June 24, 2024

Mexico’s biggest drug store company to open 300 new outlets

The stocky Dr. Simi, mascot of the national drug store franchise Farmacias Similares, is about to appear on many more sidewalks as the company intends to open 300 more stores this year.

Described by the newspaper El Financiero as the largest drug store in Mexico and Latin America, Farmacias Similares finished 2018 with 6,400 stores in Mexico.

” . . . The expansion goal is to add 300 more this year,” said the company’s strategy and product promotion director, Víctor González Herrera.

The plan will add 1,200 jobs to the franchiser’s existing 17,000.

According to the market research firm Euromonitor International, Farmacias Similares has beaten competitors like Farmacias Yza and Farmacias del Ahorro, taking 10.9% of the market, with estimated sales of US $2.9 billion.

The firm recently opened a number of stores in the tunnels of the Mexico City subway system, but their profitability does not compare to that of the more traditional drug stores.

Instead of looking for new venues or business models, González said, Farmacias Similares will focus on launching a wider variety of products, along with its own name brand.

The executive explained that the sale of over-the-counter medications, vitamins and skin care products represent 30% of the firm’s revenue.

González also said that Farmacias Similares intends to analyze sales of CBD — cannabidiol, a compound found in cannabis that has a relaxing effect and helps control anxiety — before deciding whether to offer it to the public.

While the firm has based its business model on the sale of generic drugs, hence its name, González remarked it has never ruled out selling patent medicines. “. . . We never stop analyzing anything,” he said.

Source: El Financiero (sp)

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