Russia-based Pharmacy Chain 36.6 has announced a shift in its pricing strategy to drive sales volumes. The retailer will reduce prices of its best-selling items in the pharmacy, OTC healthcare and private label ranges by an average of 20%. The move follows government pressure on the industry to reduce the price of pharmacy goods. The retailer hopes to offset expected revenue losses caused by reduced prices by increased sales generated by newly acquired customers. The company also believes it will derive incremental profit from negotiating better contracts with manufacturers, and selling higher volumes of private label products.
Valeriya Solok, CEO, said: “Due to new business technologies employed at 36.6 we are now able to price our products below average competition while preserving high standards of service. This bold and innovative decision will make possible attracting more clients and increasing the company’s profitability.”
