Lior Adika Credits Import Reform for Lowering Pharmacy Prices Across Israel
Lior Adika, founder of the Lior Adika pharmacy chain, praised the recent import reform dubbed 'What’s Good for Europe is Good for Israel' as a transformative law for the Israeli pharmaceutical retail market. Speaking at the Calcalist and Mizrahi Tefahot Growth Conference, Adika explained that opening import barriers is the key tool for reducing prices in a market currently dominated by only three chains, with Super-Pharm alone operating about 300 branches.
Adika described his chain as distinct from traditional pharmacies, offering a wide range of personal care, home care, and pet products at affordable prices with a unique shopping experience. Currently, the chain has four branches in Jerusalem, Tel Aviv, and Modiin, with plans to open a larger store in Nesher and expand further in central Israel.
He highlighted that in areas where his stores operate, prices drop across the region, attributing this to his efficient business model combining smart trade, import strategies, and market power. Adika also noted that despite recent price reductions, there is still room for further cuts.
Regarding government initiatives, Adika supported the import reform but criticized the state’s controlled product basket tender won by Carrefour, calling it ineffective and limited in scope. He emphasized that true price pressure comes from easing import restrictions, which previously involved complex approvals from the Ministry of Health.
Adika illustrated the impact of his pricing strategy by comparing the cost of Listerine mouthwash in his stores to competitors, showing significantly lower prices. When asked about entering the food market, he was open to the idea but had not seriously considered it before, joking that Israel needs someone to sell affordable snacks like Krembo.
Summary: Lior Adika, founder of a unique pharmacy chain in Israel, credits recent import reforms for enabling significant price reductions in the pharmaceutical retail sector and plans further expansion, while criticizing other government pricing initiatives as ineffective.
