Portuguese 
English 
Spanish 
5 min of reading 
0 comments 
Traditional Brazilian pharmaceutical retail network closed activities after decades of expansion in Mato Grosso do Sul, accumulating million-dollar debts, closure of about 90 units, and sale of properties linked to the controlling group amid the financial crisis that marked the company’s last years.
Drogaria São Bento, a traditional Brazilian pharmaceutical retail network, officially ended its trajectory last Thursday (14th), after years of financial difficulties that resulted in the closure of all brand units.
Over decades, the company operated about 90 stores in Mato Grosso do Sul and was among the largest pharmacy networks in the country, but ultimately ceased activities permanently after a long economic crisis that also affected its distributor and part of the assets linked to the controlling group.
Founded in the 1940s in Campo Grande, São Bento began as an independent pharmacy located at the corner of Rua 14 de Julho with Avenida Marechal Cândido Mariano Rondon. With the advancement of operations over the years, the brand expanded its presence in the state and consolidated one of the largest pharmaceutical structures in the Central-West region.
-
World Cup: Giant 92,000-seat stadium that emerges like a ‘seed’ in the desert with FIFA standards; complete sports park will be the new home of the national team before Saudi Arabia’s 2034 World Cup.
-
It was necessary to assemble a combo of almost 44 meters with two trailers of approximately 22 meters, 48 axles, and three trucks working at 15 km/h to transport a 209-ton transformer through Klickitat County in a two-night operation that closed highways and crossed two concrete bridges.
-
Operated on and returned to the womb, a girl who was born twice overcomes a rare tumor and now “wakes up smiling every morning”
-
The royal house that looks like it’s straight out of the Flintstones uses granite as a natural structure and reveals a surprising way to build without clashing with the landscape.
Growth of Drogaria São Bento in pharmaceutical retail
Thanks to the accelerated growth recorded in the following decades, the company reached 23 municipalities in Mato Grosso do Sul and came to occupy a prominent position in the national scenario. During the period of greatest expansion, the network appeared among the leading names in Brazilian pharmaceutical retail.
Historical data from the Brazilian Association of Pharmacy and Drugstore Networks (Abrafarma) indicates that the best performance occurred in 2008, when the company ranked 18th in revenue and 11th in the number of units.
Network expansion increased operational costs
To sustain the network’s expansion, the company increased investments in logistics, technological modernization, and operational structure in different cities of the state. According to information released by the company in recent years, the costs associated with this expansion gradually compromised the group’s financial capacity.
In addition to the physical stores spread across Mato Grosso do Sul, the company’s structure also included medication distribution operations aimed at internal supply and supporting regional expansion. Even so, the increase in expenses and the growth of indebtedness began to increasingly pressure the company’s activities.
In the mid-last decade, the network was already facing difficulties in maintaining payments and preserving operational pace.
The situation worsened in the following years, especially amid changes in the national pharmaceutical retail sector, marked by the consolidation of large groups and increased competition in the sector.
Closure of the last stores in Campo Grande
Even after successive attempts at financial reorganization, São Bento gradually reduced operations until completely closing commercial activities. The last two operating stores, located on Avenida Guaicurus and Rua Ceará in Campo Grande, closed their doors in 2022.
At that time, the company’s indebtedness had already reached approximately R$ 88 million, a scenario that accelerated the definitive closure of the remaining units. Thus, came to an end a network that for decades had been part of the daily routine of consumers in Mato Grosso do Sul.
At the same time, former customers witnessed the progressive disappearance of the brand in the regional market as new units ceased to operate. Many stores were deactivated over the years, reducing the company’s presence in cities where the network had a strong presence since the 1990s and 2000s.
The definitive closure also affected former employees and suppliers linked to the company’s operation.
Part of the financial liabilities remained under discussion for years after the closure of commercial activities.
Group farms were put up for sale
With the worsening of the financial crisis, properties linked to the group’s owners began to be used to cover part of the liabilities accumulated over the years. Among the assets involved were farms located in the municipalities of Camapuã and Bandeirantes, in Mato Grosso do Sul.
Together, the properties total more than 1,200 hectares.
The rural areas were valued at around R$ 23.6 million. The properties belonged to the Buainain Group, the family responsible for the creation and expansion of the pharmaceutical network.
The sale of the properties marked one of the final chapters in the company’s business journey, which had already lost market share due to the growing competition from large national chains and the transformation of the Brazilian pharmaceutical sector.
Pharmaceutical network marked generations in Mato Grosso do Sul
Over the decades, Drogaria São Bento established a strong image in the Mato Grosso do Sul market and expanded its presence in different regions of the state. The network stood out mainly for its expansion in medium-sized cities and for strengthening an operation focused on local service.
At its peak growth period, the company became a state reference in the pharmaceutical segment.
The presence in dozens of municipalities allowed the brand to become known by different generations of consumers.
In an attempt to keep up with changes in national retail, the group also increased investments in technology and logistics structure over the years. Even so, the advance of large competitors and the increase in operational costs made it difficult to maintain the business in the following years.
The Brazilian pharmaceutical market has undergone significant changes in recent decades, especially with the strengthening of large national chains, growth of digital commerce, and expansion of loyalty and discount programs.
Regional companies faced difficulties competing on a similar scale.
Closure reflects changes in the pharmaceutical sector
The disappearance of São Bento also represents a change in the profile of Brazilian pharmaceutical retail.
In recent years, traditional regional networks have lost ground due to the market concentration in large groups with strong investment capacity and extensive logistics structure. Even after the stores closed, the brand was still remembered by consumers in Mato Grosso do Sul for its long presence in the state and its historical performance in Campo Grande and the interior.
The company’s journey spanned more than seven decades and accompanied different phases of pharmaceutical commerce in Brazil.
The definitive closure of operations puts an end to the history of one of the most traditional networks in the Central-West region.
Be the first to react!