Expansion of pharmacy chains. Where and how to find good locations?

The development of pharmacy chains has always had signs of increased activity. The retail trade of medicines and related products has a constant demand from consumers with a seasonal spring-autumn increase in sales. Pharmacy chains steadily implemented development plans. However, starting from February 2023. the demand for expansion grew so much that it began to significantly exceed the supply of available space in the commercial real estate market. This, accordingly, had an effect on the increase in the cost of renting a square meter of rented premises, an increase in fixed costs for opening a pharmacy, experiments with areas and formats of institutions and a shortage of space in "working" locations. The company "Ukrainian Consult Group", which is an active player in the commercial real estate market and is engaged in the development of leading national pharmacy chains, in this article provides recommendations for finding pharmacy-style spaces.

So how to find the right area in a good location? There are several universal recommendations that are suitable for the format of any settlement. First, many operators are now willing to sublease rental space in order to optimize, reduce rental costs and increase generation and meet the needs of their traffic. Such operators include grocery supermarkets, drugstore format stores, and dollar stories. As a second point of search, we recommend paying attention to the own premises of local FOPs that are ready to move from the active phase of entrepreneurship to passive income, not wanting to compete with system operators and ready to consider a lease offer. Usually, this is a long process, but with a guaranteed result. The third option is the desoldering of large, sometimes undervalued areas between several operators. The best combination: grocery supermarket, pharmacy, drug store, pet store and postal or communication operator. Such outlets generate mainly targeted traffic that generates the right traffic for the pharmacy. It is also worth paying attention to commercial premises in new residential buildings that are actively occupied. This is a good prospect for future development.
Another characteristic feature of this period of the development of pharmacy chains is the entry of large market operators into small-sized settlements with a limited filling of the local market. This direction has many advantages, namely: the absence of a large number of competitors, not high rental rates, the possibility of becoming a virtually single system operator.
The disadvantage of these locations is a relatively low turnover.

Summing up this article, we would like to say that, in our opinion, the future development of pharmacy chains will be in the absorption of weaker competitors, even more active development of online trade and changes in the legal field, as a result of which the number of active players will decrease.

The company "Ukrainian Consult Group", which provides a full range of services in the field of commercial real estate, is ready to assist in the implementation of projects of any complexity for our esteemed customers and clients.