Raia Drogasil presents new marketplaces and changes in stores; stocks rise By Investing.com

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Investing.com – Through mainly the launch of marketplaces and updates in physical stores, Raia Drogasil begins to put into practice its new strategic plan for the next five years, which is being announced this Wednesday (30) at the annual event company with its investors.

At 2:05 pm, the company’s shares () were traded at R $ 23.34, an increase of 6.43%, the second highest increase today.

Two marketplaces will be launched, one for products and one for health services. In the product marketplace, the company should start selling up to 100 thousand different products, against the 12 thousand currently sold. The idea is that, in principle, the delivery of these products is made by each seller. In a second moment, however, RD intends to optimize its logistics network to carry out deliveries.

The second marketplace under development will be destined to health services, with a network of professionals such as nutritionists, physical trainers and psychologists, and a platform for teleconsultations.

The plan, however, does not just cover the company’s digital businesses. RD intends to equip many of its stores to offer services such as vaccination, exams and telemedicine. In addition, the product marketplace will encourage customers to collect their purchases in stores, while the service marketplace will offer telemedicine consultations in pharmacies, where a health professional will be present to assist customers.

In this sense, the company informed that it should continue the pace of opening new stores, of 240 units per year in 2021 and 2022. Currently, RD is focusing on increasing its presence in cities and regions with lower income, in the Northeast and in inland cities via their entry and hybrid formats.

Another novelty for the short term is Stix, a new loyalty program created in partnership with Grupo Pão de Açúcar (SA 🙂 and Itaú (SA :), which should be launched soon.

Results

Raia Drogasil has shown a recovery, with 0.8% growth in same-store sales in July – 5% if stores in malls that have not yet had volume normalization are excluded. The digital strategy has been shown to be important in sales growth. In 2Q, digital sales corresponded to about 7% of RD sales and this percentage was maintained during 3Q. While in 2Q digital was a tool for preserving sales, in 3Q digital served as an incremental sales tool.

The company, however, also suffered impacts from the pandemic, such as the deceleration in market share gains, impacted in the 2Q due to the fact that RD has more stores in malls and premium areas than its main competitors.

Analysts View

After a conversation with management about the future of the company, in which RD presented its O2O strategy (online to offline) and its “new concept” of pharmacy, UBS recommended Purchase for its shares, with a target price of R $ 25. The information is from a sectoral report distributed last Thursday (24).



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