customers registered in the loyalty program
Extrafarma ended the year as the sixth largest drugstore chain in Brazil according to the Abrafarma ranking, with a leading position in the Northern and Northeastern markets. The most recent business of Ultra, acquired in 2014, the retail pharmacy network went through a restructuring process aimed at preparing the company for a more accelerated growth cycle. The company’s organizational structure has been completely remodeled and processes were reviewed, accelerating the store opening pipeline. This initiative resulted in the opening of 60 drugstores since the merger of Extrafarma in January 2014. The network expansion also resulted in geographic expansion, with the opening of the first drugstores in the states of São Paulo, Pernambuco and Paraíba in 2015.
During this transition year, Extrafarma focused on raising its management standards in the retail pharmacy business, preparing the company to a stronger growth. Extrafarma improved the quality standards of the stores, which allows a better purchase experience, with team qualification, better visual communication and focus on the consumer. For this reason, we made investments in researches, team training and in a program with all managers of the stores with the purpose of implementing an entrepreneurship culture and owner’s mindset. The architecture of the drugstores was also contemplated among the changes. The brand itself has been redesigned, with the definition of a new logo.
Leading position in the Northern and Northeastern markets. Since the merger to Ultra, 60 new stores were opened.
Due to the focus on strengthening the retail platform, Extrafarma opted to maintain an opening rate of new stores in 2015 slightly lower than expected at the beginning of the year. The idea is to launch the stores already adapted to the new visual communication model. At the end of 2015, Extrafarma had 254 stores in the North and Northeast of Brazil, including the flagship store in an Ipiranga service station in São Paulo, which represented a 14% increase compared to 2014.
Extrafarma has also the “Clube Extrafarma”, a loyalty program that already has more than 3 million customers registered in its base. This initiative has as purpose to recognize its customer’s loyalty, offering value-added products and services, allowing Extrafarma to track the consumption habits of its audience.
- One of the largest pharmacy retail chains of North and Northeast regions of Brazil.
- Positioned in regions with growth potential above the Brazilian average.
- Great synergies potential for expansion through the network of 12,000 Ultra points of sale, including Ipiranga’s service stations and Ultragaz resellers.
- Increased expansion potential by accessing Ultra’s greater investment capacity.
- Strengthening of Extrafarma’s management team, through the implementation of Ultra’s recognized mechanisms of corporate governance, incentives and alignment of interests.
Extrafarma store in São Paulo-SP
NUMBER OF STORES
GROSS REVENUES R$ million
EBITDA R$ million
Highlights in 2015
- Opening of 37 new stores in 2015.
- Entry into the markets of Pernambuco, Paraíba and opening of the flagship store in São Paulo.
- Development of a new store model, in order to improve the consumers’ shopping experience.
- Stores opening at Ipiranga’s service stations (Belém and São Paulo).
In the city of Belém (PA), Extrafarma maintains the Beatriz Lazera Daycare School for employee’s children between 2 and 5 years. The program includes citizenship and recycling classes, has a playroom made up of recyclable toys and a reading room with textbooks, in addition to providing food with balanced meals monitored by a nutritionist. The school moved to a 397 square meters facilities, with new rooms, a dining room and more spacious recreation areas, after Ultra assumed Extrafarma in 2014.
Extrafarma distribution center, in Aquiraz-CE