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Pharmacy Chain 36.6 sales plummet amid store closures

Russia-based Pharmacy Chain 36.6 has reported a revenue decline of 23.3% for the full year 2009 to RUB16.0 billion (USD503 million), attributed to the closure of under-performing stores, partial shortages of products as a result of working capital decline and decrease in customer demand. Like-for-like sales in 2009 decreased by 17%, while like-for-like average cheque increased 11%. Gross margin in the Retail unit increased from 28.1% in 2008 to 32% in 2009, due to an increased share of private label, successful commercial activity in terms of price-cuts from suppliers, improvement of pricing and assortment policies. Pharmacy Chain 36.6 opened 23 stores and closed 131 stores in 2009.

The Pharmacy Chain 36.6 Group, which includes the activity of a generic drug manufacturing unit and the operation of the Early Learning Centre franchise, recorded a net loss improvement from RUR1.64 billion in 2008 to RUB359.4 million in 2009.

Pharmacy Chain 36.6 reported a sales decline of 28.7% to RUB3.6 billion (USD121.55 million) in Q4, while like-for-like sales fell by 21%. Average cheque increased by 6%, as traffic declined by 26%.

www.planetretail.net

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