The interview with the CEO of the pharmacy chain Raia Drogasil is an expansion class with which he always understands and gets it right

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RD's plan is to open 260 pharmacies a year in the triennial period 2023-2025, based on 2,700, which indicates a growth of ~ 10% per year.

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Is there a demand for all of this?

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Underlying this ambitious volume of openings is a process of continuous expansion, which knows the result of each new store with 95% confidence.

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“Few companies in Brazil expand so well”

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While less efficient networks still rely on expansion cycles, with a high volume of openings in one phase, and subsequent adjustments and closures, almost on a roller coaster, RD expands linearly.

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Finding opportunities of such quality is not an easy job, but the defensive business model, complemented by health services, such as vaccination, with a presence in all Brazilian states and strength in the interior allows the network to find more space to position itself.

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Of the 80,000 pharmacies in Brazil, RD accounts for 3.4% of the volume with its 2,700 units, but captures a Market Share of 14%, that is, an invoice 3-4x more than the industry average.

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Part of this result is attributable to the strength of the commercial outlet, as we know that the pharmacy segment is a “buyer” of street corners and is demanding in conditions such as visibility on high-flow roads, accessibility with parking spaces in the front, and convenience, seeking to be right in the middle of demand centers.

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Such is the quality of its locations, that the chain is not interested in acquiring others, a path that could accelerate its growth, but would risk the consistent expansion and predictability that each store has today.

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#ficadica

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