Countless products on offer, at prices that defy all competition (at least, competition from pharmacies): it’s a recipe for success. Medi-Market, named Belgian Company of the Year 2023, has just opened its 10th shop in Luxembourg, at the Opkorn shopping centre in Differdange. The mass-retailer is known as a “parapharmacie” to French speakers, meaning a shop that sells soaps, cosmetics and other products related to wellbeing but not medicines, rather like the retail-focused Boots (UK) or CVS (US) but without the pharmacy business altogether.

Launched in 2014, Medi-Market has sought to end the so-called monopoly that pharmacies had on non-prescription products. “From the outset, it was a concept that was intended to be disruptive, thought up by my predecessor, Yvan Verougstraete, whom I replaced two or three years ago,” says CEO Cédric Antoine. “We wanted to change this with a concept that brought together health and wellbeing under one roof, with a wide range of products at the best prices: on average 20% lower than in traditional pharmacies. We have also developed several concepts: traditional pharmacies, parapharmacies and beauty salons.” The low prices are made possible by high volume of orders for the company, which has 140 sales outlets in Belgium, Luxembourg and Italy.

In Belgium, Medi-Market actually can sell medicines too, but in Luxembourg and Italy it is strictly a “parapharmacie.” Antoine explains: “It’s easier commercially to develop a network of parapharmacies, because in most countries the number of pharmacies is regulated. But clearly, we are a legitimate player in the development of the pharmacy sector too.”

He adds that entering the Luxembourg market was a natural move. “There is often a commercial correlation between Belgium and Luxembourg. Here [in Luxembourg] the configuration of pharmacies is somewhat similar to in Belgium: they are rather small and local, and not large like the ones we’re developing, where we bring together a very attractive and competitive offer with a good assortment of brands, which we believe is what makes the difference.”

Antoine has some familiarity with the Luxembourg market, having been the director of the Cora shopping centre in Foetz from 2008 to 2012.

“Destination shop”

After ten years in business, Antoine can relax a little. “Medi-Market was born out of a struggle. It’s never pleasant in a sector to see a competitor arrive and develop. Pharmacists, if they are willing to admit it, have realised that we are bringing in a new customer base by positioning ourselves as a destination shop.”

A so-called “destination shop” is one seen as a place worth visiting, where consumers are prepared to travel a long way just to make a purchase. “Rather than fighting over our strong point, pharmacists can concentrate on their core business: selling medicines, advising patients and developing new skills, such as [offering] vaccinations or different types of screening,” says Antoine.

Alain de Bourcy, president of the Syndicat des pharmaciens and owner of Pharmacie du Cygne, declined to comment.

The competition is also online

Another “parapharmacy” is Lafayette, which opened its first outlet in Luxembourg last summer. “When I arrived… I was a bit of a punching bag in the middle of three pharmacies,” says manager Mikaël Wallerich. “Now, Medi-Market is there too--just across the road [in Luxembourg City]--and the pharmacists have realised that they have to adapt. We know, for example, that when a McDonald’s opens somewhere, a Burger King is never far away. I think that competition can boost the market, because customers go to both and compare.”

Launched 15 years ago, Lafayette has built its reputation on low prices, a range of tens of thousands of products and an emphasis on advice and experience. There are 250 outlets across France, and like Medi-Market it also offers an online shop.

Some Luxembourg pharmacies have entered the online competition too, including Pharmacie Gillain with mapharmacie.lu, Pharmacie du Globe, Pharmacie de Steinfort and Pharmacie de Pétange.

“Societal transformation”

Antoine believes that the “parapharmacie” concept has gained traction in these regions because of the Covid-19 pandemic, and goes so far as to call it a “societal transformation.”

“Since Covid, there has been a change in mentality. Health has come back to the forefront. We have citizens who have clearly understood that health capital is important and that we need to learn to understand it, look after it and respect it. I think this is a societal transformation that will take place over the long term.”

“In the same way as scoring for food products, it’s not out of the question that one day there will be something similar for health, to find out the impact of products on health,” he says, proceeding to correlate the discount products in such shops with preventative health. “We’re moving towards a society in which health will no longer be just a matter of curing, but also of prevention: taking care of your body, your skin, your sleep, your wellbeing.”

Medi-Market has further ambitions for the Luxembourg market. “We have gradually become a market leader in Belgium, with an 18% market share,” says Antoine. “I don’t know the exact market share of the Luxembourg market, but we have also become a benchmark, with shops that are popular with customers and doing well.” He doesn’t rule out the possibility of developing Medi-Market beauty salons, which already exist in Belgium.

Lafayette is also planning to expand, but at a slower pace, “to give us time to get to grips with the market,” says Wallerich. “The initial results are positive for the moment. We’re meeting our forecasts and even slightly exceeding them. But it will take two or three years before we can achieve the same statistics as in France. As far as the future is concerned, I have no intention whatsoever of going into pharmacy, but of developing this ‘parapharmacie’ concept--and why not optics and medical equipment at a later date?”

This article in Paperjam. It has been translated and edited for Delano.