Stary Lekar and 03 pharmacies changing format

2012-02-14



The Finnish pharmaceutical retailer Oriola-KD will reformat its Russian networks of Stary Lekar and 03 pharmacies to make them discounters. The name of the potential new concern has not been disclosed, however, the 'new' stores will occupy their current trading areas.

The company's decision is probably explained by Oriola-KD's weak financial results in Russia in 2011. According to the company's report, in 2011 was operating a loss of €12.6m ($16.7m), against a €8.2m ($10.9m) loss in 2010. Overall, the company's net sales within the Russian pharmaceutical market amounted to €698.4m ($924m), against €572.4m ($757.5m) in 2010. The company blamed the unsatisfactory results on the high level of competition, as well as higher taxes introduced in 2011 on the pharmaceutical market.

The project is to follow a similar announcement by 36.6, about which Retail Update Russia has recently reported, which has seen the Russian pharmaceutical retailer switch to the discounter format in half of its almost 1,000 shops, re-branding them Aptechny Sklad.

Oriola-KD acquired Stary Lekar pharmacy chain in March 2003. In turn, 03 Apteka was bought in September 2010. Today, Oriola-KD's overall Russian store count includes about 250 pharmacies. During 2011 the company opened 35 pharmacies and closed 37.