The recognized pharmacy chain in northern Mexico, Farmacias Benavides, is facing both local and structural challenges due to the accelerated closure of stores by its parent company, Walgreens Boots Alliance. This decision is due to the company's struggle with the growing consumer preference for online shopping and the competition from supermarkets that offer medications alongside other products at more attractive prices.
Tim Wentworth, director of Walgreens, revealed that a quarter of the pharmacies were not generating profits, reflecting a similar trend to its rival CVS in the United States, which announced employee layoffs. In Mexico, Farmacias Benavides had experienced rapid market growth until the turn of the century, when its partnership with Farmacias Ahumada from Chile marked the beginning of a decline in its fortunes.
The arrival of new financial directors, such as Perla García Dávila, reflects the internal instability faced by the company, aggravated by reports of a lack of liquidity detected by external auditors. The sudden departure of Sarah Cepeda Muñoz as chief financial officer and board member created uncertainty within the company, while the mass store closures in the United States demonstrate the parent company's priority in other markets.
Founded in 1917 by Jesús Benavides Guerra, Farmacias Benavides has over a thousand branches in Mexico and ranks among the five most important chains in the country in its sector. Financial uncertainty and Walgreens Boots Alliance's urgency to balance the corporate books raise questions about its future, making it a potential acquisition target for companies like Grupo Femsa or Walmart de México, which seek to expand in the health and pharmaceutical sector in the country.
The growing market of medication consumers in Mexico, combined with deficiencies in state healthcare, make Farmacias Benavides an attractive player in the industry. With an aging Mexican population, the chain faces significant challenges in maintaining its market position and competing in a changing and competitive environment.
