Health and Beauty Specialist Retailers in North Macedonia

2021 DEVELOPMENTS

Strong value growth continues thanks to stable demand for chemists/pharmacies

Thanks to heightened health and immunity awareness due to COVID-19, health and beauty specialist retailers will achieve strong retail value growth in 2021, following the stable results of 2020. This is a good performance for a non-grocery retailer (with all other store-based non-grocery retailing channel recording double-digit decline in 2020).

Local beauty specialists benefit from reduced international travel as consumers purchase domestically instead

Before the pandemic, many consumers used to stock up on beauty product purchases in duty-free zones when travelling. With tourism and international travel strongly restricted during the pandemic, consumers have not been able to take advantage of this and have instead had to turn to local retailers for beauty products.

Organic expansion of dm-Drogerie Markt continues despite impact of pandemic

On 8 July 2021, dm-Drogerie Markt opened its 20th Dm brand drugstore in Ohrid, continuing its expansion in North Macedonia despite the difficulties of the COVID-19 pandemic. To encourage consumers to attend the opening and purchase goods, the company advertised big discounts and surprises that will last over four days.

PROSPECTS AND OPPORTUNITIES

COVID-19 to help boost sales via health specialists over the early forecast period

During the early forecast period, health specialists, especially chemists/pharmacists will significantly benefit from COVID-19 as consumers continue to seek products that will support their immunity and overall wellbeing. Sales will be driven by demand for both Rx and OTC products as well as other auxiliary products necessary to maintain personal health and hygiene.

dm-Drogerie Markt continues growth trend via customer-focused marketing efforts

Germany-based dm-Drogerie Markt is set to continue to be highly active in drugstores/parapharmacies, one of the most rapidly developing channels in health and beauty specialist retailers. As one of the few high-performing international players in North Macedonia, it has realised significant organic growth and expansion, resulting in considerable increases in value share.

E-commerce set to steal some share from store-based sales

The rapid growth of e-commerce in health and beauty products continues with the channel recording double-digit growth in 2021. The penetration of e-commerce is only set to increase during the forecast period as consumers become more accustomed to purchasing products online and become more technology savvy.