The retail market is gaining momentum in Ukraine. Retail growth was buoyed by high consumer demand and individual income growth – mainly in wages. Besides, inflation cooled down, helping the retail market to grow further. During the first half of 2018, 11 new international brands entered the Ukrainian market, which increased investors' interest in retail real estate assets and the retail market as a whole. It is likely that the Ukrainian market, which is not filled with the international brands, is becoming increasingly attractive against the background of declining sales of large retailers in economically developed countries, despite the perception of Ukraine's economic and political situation as unstable.
Retail superstore chains are available in the main Ukrainian cities and primarily specialise in FMCG, consumer electronics, Do-it-Yourself (DIY), automotive parts and accessories, cosmetics and toiletries, pharmaceuticals and health care goods. During several last years though, new shopping malls that meet expectations and criteria of international brands appeared on the retail map.
Over 6,000 businesses are engaged in selling pharmaceuticals. Pharmaceuticals are sold through about 20,000 private and state-owned pharmacies and pharmacy retail points. Ukraine's pharmaceutical sector is one of the fastest-growing and most crisis resistant consumer industries in the economy. A major growth driver is import substitution, building a strong case for international pharma companies to increase investment through the purchase of existing players or building their manufacturing in Ukraine. The immense consumption gap versus peer countries is another growth driver: per capita, pharmaceutical expenditures in Ukraine are only 15-25% of the levels of neighbouring countries.