Retailweek, Èíòåðâüþ À.À.Áåêòåìèðîâà, Ãåíåðàëüíîãî äèðåêòîðà Àïòå÷íîé ñåòè 36,6

Russian retail is stable, assures pharmacy boss

Artem Bektemirov, boss of Russian pharmacy chain 36,6, moved to quash fears that the country is becoming an unstable market for foreign investors by insisting there are two distinct economies in operation.

In a tumultuous week, billionaire Yukos boss Mikhail Khodorkovsky returned to the dock to face tax evasion and fraud charges. Separately, the editor of Forbes Magazine’s Russian Edition, Paul Khlebnikov, was shot dead.

Bektemirov said the oil and gas industry was distinct from the new telecoms, retail and services economies, and said there were “quite strong barriers” between them.

In London on an investor roadshow, Bektemirov outlined ambitious plans to grow the 36,6 chain, which he describes as a “mixture of Boots and Superdrug”.

The 240-strong retailer is the health and beauty market leader by sales and store numbers, in a sector worth US$ 10 billion (?5.37 billion), which is predicted to grow 17 per cent a year. 36,6’s proposition is a novel retail format for Russians, and the chain is benefiting from the absence of a multinational player.

“Russian habits are changing,” said Bektemirov. “They want new things, they are traveling a lot more and want to test new products.”

36,6 pushed beyond its Moscow heartland by acquiring the 73-store Leko in the Russian Republic of Bashkortostan in February. Bektemirov said growth would be achieved organically and by acquisition, with a push into the Ukraine and Kazakhstan on the cards.

Consolidated sales reached US$ 147.8 million (?79.4 million) last year and are expected to double this year.

RetailWeek