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Regionals use innovation to knock out the competition BY ANTOINETTE ALEXANDER have become among the latest to offer a discount This regional player prides itself in customer serv- generic drug program. By offering such pro- ice, and, for the past seven or so years, has served o what do boxing and retail pharmacy have grams, these retailers can better compete with those patients in very small communities via a in common? More than you might think. such big players as Walmart. telepharmacy program. SLike boxers in the ring, both regional and South Dakota’s hometown drug store Lewis In an effort to ward off competition, Kinney national players are battling for the win and striv- Drug continues to grow its concept, even after 65 Drugs reportedly negotiated deed restrictions ing to overcome much of the same challenges, years in business, and has finalized plans to open a with St. Lawrence University on two properties — whether it is an uppercut from average wholesale full-service pharmacy this summer inside the near the SLU golf course at routes 68 and 11 — price, a jab from patients coping with rising phar- Sunshine Foods store in Tea, S.D. that will prevent for 50 years a store that sells pre- macy premiums and co-pays, or a counterpunch Meanwhile, the new management team at the scriptions. Walgreens and Rite Aid reportedly had from the rival down the street. But despite the helm of New York’s Duane Reade is testing new an interest in opening stores in those areas. challenges and added pressure from retail heavy- ideas — such as a raised pharmacy and improved These are just a few examples of how regional weights, regional players refuse to get pinned adjacencies — for store layout and design in vari- pharmacy chains are remaining competitive. against the ropes. ous locations throughout the city. While their service offerings and approaches may Unlike many of the large pharmacy retailers Pharmaca Integrative Pharmacy, whose focus vary, a common thread running throughout these that must wade through layers of management on both allopathic and holistic health remedies regional players is their commitment to, and deep and tread cautiously as to appease Wall Street, sets it apart from the competition, not only has entrenchment in, the communities they serve. these lightweights have speed and agility on their tapped supermarket and drug store pharmacy Many of these companies have been serving their side, and they are taking innovative measures to veteran Mark Panzer to serve as COO, but also patients for generations — 118 years if you are maintain their footing. has nearly doubled in size in the past year. With Bartell Drugs — and they have become not just a For example, Drug Fair, a regional with 59 phar- the help of a $20 million injection in the arm, local drug store on the corner, but also a friend. macies and general merchandise stores in north- Pharmaca now stands at 23 locations. In fact, many would argue that these light- ern and central New Jersey, and Discount Drug Then there’s Thrifty White, an 86-store chain weights are the true heavyweights in the commu- Mart, which operates 67 stores throughout Ohio, that serves rural areas and towns in the Midwest. nities they serve — a knockout champion. New exec team poised to overhaul Duane Reade ops NEW YORK — Since taking the helm at Duane Reade in Drug Store executive Frank Scorpiniti to serve as development in 2009. March 2008, John Lederer and his team have been SVP of pharmacy operations. He succeeded Jerry In one Upper East Side location recently visited by reviewing the business and pouring over customer Ray who resigned in September 2008. Drug Store News, many of these new ideas were evi- research to uncover opportunities to strengthen the Meanwhile, the management team is focusing on dent. For example, the pharmacy department is locat- business and capitalize on the chain’s brand and three primary areas: pharmacy, customer experi- ed near the front entrance and is elevated so it over- urban market niche. The 245-store chain also has ence and developing an “urban-centric” box. In looks the rest of the store. It also features hardwood retooled the management team. pharmacy, the company is exploring ways to floors for a high-end look and feel. Throughout the In the second half of 2008, the company hired upgrade its technology through added Web-based front-end, the aisles are wider, the lighting is brighter Joseph Magnacca, who previously led marketing applications and other efficiencies in the supply and some of the areas have been remerchandised for and merchandising initiatives at Shoppers Drug chain and pharmacy customer service. better adjacencies. For example, the acne skin care Mart since 2002, as SVP and chief merchandising To improve the customer experience, focus is on treatments are merchandised next to the skin care officer. Magnacca filled a post that had been vacant enhanced employee training and on strengthening boutique. The store also features a grocery-style since the April departure of David D’Arezzo. ways to measure customer satisfaction. checkout area and modern-looking signage. Joining the company as SVP of supply chain was In addition to these initiatives, the company is DUANE READE Mark Scharbo. Scharbo served as COO of Case-Mate, testing new ideas for store layout and design. Sales 2008: $1.69 billion a provider of leather accessories for cell phones and These stores represent the early stages of Duane RX Sales 2008: $777.4 million other digital devices, which he co-founded in 2005. Reade’s ultimate strategic direction. Management Store Count: 245 More recently, Duane Reade tapped former Longs stated that it will work to refine and advance their

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Kinney expands through innovation, local outreach BY ALARIC DEARMENT recruitment, as well as free screenings for colorec- tal, breast and cervical cancer to uninsured and GOUVERNEUR, N.Y.— In its 105 years, Kinney Drugs has underinsured patients ages 50 and older. grown into an employee-owned company with 87 The chain also is expanding the scope of its retail- stores in central and northern New York and ing business. In November, it announced that it Vermont, operating its own distribution warehouse, would open a new 12,700-sq.-ft. prototype store in pharmacy benefit manager and institutional phar- Syracuse, N.Y., that would provide a broader range macy business. of pharmacy-related health services and healthcare It also has reached out to the communities in products. These would include a pharmacy drive- which it operates, with efforts during Colorectal through window, free prescription delivery, a phar- Cancer Awareness Month last March for which the macist consultant area and a program to provide free New York State Department of Health Cancer “life vials” of patients’ medical and prescription his- KINNEY Services program presented Kinney with a 2008 tories for medical emergencies. The store will include Sales 2008: $759.5 million Innovative Project/Event Award. Kinney had expanded personal care, OTC, beauty, household RX Sales 2008: $580.5 million invited the NYSDOH’s program into 61 stores to and pet products, as well as consumables, a digital Store Count: 87 set up clinics for colorectal cancer outreach and photo center and a greeting card department. Aiming to reinvent Rx, Kerr extends renewal efforts BY JIM FREDERICK drug store marketplace, which demanded a new grams and new ways to partner with physicians, approach to serving patient needs in the Carolinas employer-based health plans and other stakeholders. RALEIGH, N.C. — When a group of former Thrift Drug and a willingness to scrap old concepts of communi- Those efforts have won the chain a high-profile role executives bought Kerr Drug from JCPenney in 1997, ty pharmacy. But it’s a role that Kerr’s leaders have in community wide pharmacy care programs like neither Kerr’s new management team nor the chain always appeared to relish. the Asheville Project and ChecKmeds NC, a state- pharmacy industry it represented knew the North Kerr virtually pioneered the concept of in-store sponsored medication therapy management pro- Carolina chain would soon embark on a mission to health centers staffed by clinical care and home care gram, as well as recognition from many healthcare reinvent the concept of the health-based community specialists, and it continues to push back the frontiers organizations and patient advocacy groups. Among drug store. But over the past decade, that has been of community practice with broad-based clinical pro- them: the American Diabetes Association, which Kerr’s mission. named Kerr the 2008 ADA Provider of the Year for Under chairman, president and CEO Tony Civello, KERR North Carolina, and Outcomes Pharmaceutical Kerr has emerged as the chain drug store industry’s Sales 2008: $665 million* Health Care, which recognized the company as the leading innovator in pharmacy-based patient care. RX Sales 2008: $432 million* top chain drug store provider for medication therapy That role, Civello has indicated, was essentially Store Count: 102 management in 2007. *Sales estimated forced on the company by the realities of a crowded CONTINUED ON PAGE 18 USA Drug adds services, technology PINE BLUFF,Ark. — Any broadline drug store operation technology-fueled approach to merchandising, pany’s corporate headquarters in Pine Bluff. that can thrive on Wal-Mart Stores’ home turf — marketing and distribution, functions that it carries After establishing USA Drug in 1984, LaFrance while maintaining a widely merchandised front end, out not only for its own stores but also for other and a small team of company managers embarked stacks of deeply discounted promotional buys, bou- retail operators through its regional wholesaling on an aggressive growth strategy, acquiring some of tique-style arrays of giftware and other goods, a full- and store-support operations. the industry’s top regional drug chains. service pharmacy and a reputation for value and USA Drug operates through a variety of regional The company’s flagship is USA Drugs, which personal service — has to be doing something right. chains and store banners, most of them acquired in operates some 40 USA Drug and Super D full-line USA Drug, a soft-spoken but muscular palooka of the years since company founder Stephen LaFrance and “Express” drug stores in Arkansas. The compa- regional drug store retailing, is clearly doing some- formed Stephen L. LaFrance Pharmacy Inc. in 1968. ny also owns more than 50 May’s and Med-X drug thing right. The company’s evolution accelerated in the mid- CONTINUED ON PAGE 18 Pine Bluff, Ark.-based USA Drug gets little 1970’s with the formation of SAJ Distributors, a full- national attention, but its grasp of consumer prefer- service wholesale distribution company that pro- USA DRUGS ences and ability to embed its message and retail vides health, beauty and general merchandise to gro- Sales 2008: $700 million* image deep within communities in the South cery, drug and discount stores. SAJ distributes more RX Sales 2008: $406 million* Central region of the country is beyond question — than 22,000 items to more than 1,000 customers from Store Count: 159 *Sales estimated so, too, is the company’s surprisingly sophisticated, a four-story, 255,000-sq.-ft. storage facility at the com-

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Snyders renews focus on Twin Cities leadership

BY JIM FREDERICK merchandising initiatives to rejuvenate its core oper- in gift certificates and savings coupons, in-store spe- ations in Minnesota. cials and 90-day supplies of more than 350 generic MINNETONKA, Minn. — Year 2008 was an eventful one To that end, Snyders incorporated home health- medications — covering most chronic conditions — for Snyders Drug Stores, owned by Canada’s Katz care departments in most stores during the year. for less than $13. Group. Under the direction of Katz Group president “This category, which includes goods, such as walk- In June, a national consumer poll rated Snyders Andy Giancamilli, along with David Schwartz, who ers and wheelchairs, differentiates Snyders from its the country’s No. 2 chain pharmacy in such areas as remains Snyders president and day-to-day manager, national competitors,” noted Katz Group spokes- the helpfulness and professionalism of its pharma- the chain sold four Western Drug stores in Montana woman Donna Araujo. cists and short prescription wait times, behind to CVS last spring and embarked on new service and Snyders also augmented its in-store digital photo pharmacy franchise operator Medicine Shoppe. kiosks with online photo processing and photo-relat- “Therefore, Snyders claimed the No. 1 ranking for SNYDERS ed products through its affiliation with LifePics. the chain pharmacy classification,” Araujo said. Sales 2008: $300 million* Determined to maintain its strong position in the Advanced technology helps Snyders pharmacists RX Sales 2008: $210 million* Twin Cities, Snyders also launched a prescription seal the deal with patients. Each pharmacy utilizes an Store Count: 50 corporate, savings plan in 2008. For a one-time $10 fee, cus- automatic inventory replenishment system, interactive 30 serviced independents tomers can sign up for the Snyders Prescription voice response system and, in higher-volume phar- *Corporate-owned stores only; sales estimated Savings Club, which qualifies them up front for $40 macies, Script Pro 2000 robotic dispensing systems. Aurora raises the bar with community service efforts BY ALARIC DEARMENT ond-hand items went to people in need. In December, officials at Milwaukee Concordia MILWAUKEE — Just about every retail pharmacy University announced that Aurora would pro- offers prescription drugs, OTC medications and vide program support for the $20 million phar- beauty products. But how many belong to a com- macy school it is building by having Aurora prehensive healthcare system encompassing pharmacists serve as instructors at the school stores, clinics and hospitals? while pharmacy students do internships at Aurora Health Care, which serves 90 communi- Aurora’s pharmacies. The school will be ties in eastern Wisconsin, often seeks to involve itself Milwaukee’s first pharmacy school. in local communities. In November 2008, Aurora Aurora also received a three-year accreditation sponsored a recycling drive that kept more than from the Accreditation Commission for Health 15,000 items out of landfills through its Good Care for its 130 retail pharmacies, institutional Neighbor Day program, particularly expired and pharmacy and the For Your Well Being retail store unwanted medicines. The items included more than AURORA inside Aurora St. Luke’s Medical Center in 1,600 lbs of old medication, almost 12,200 pieces of Sales 2008: $331 million Milwaukee. The voluntary accreditation resulted used clothing, more than 600 cell phones, almost 430 RX Sales 2008: $323 million from a peer review of Aurora’s internal policies, computers and 600 stuffed animals. Many of the sec- Store Count: 129 processes and patient-care delivery. Thrifty White niches its way into customer service BY BARBARA WHITE-SAX cy technicians to fill and dispense prescriptions after a pharmacist verifies and approves the prescriptions MAPLE GROVE, Minn. — Thrifty White is a textbook through an audio-video link. The system allows example of a small chain that fills a specific niche in Thrifty White to provide pharmacy services in com- its market. With 85 stores, it serves rural areas and munities too small to support a traditional drug towns in the Midwest with populations from 1,000 to store. The chain currently operates eight telephar- 90,000 and is committed to customer service. macy sites in Minnesota and North Dakota. “Being primarily in smaller markets, we under- Thrifty White also focuses on long-term care busi- stand the importance of providing access to under- nesses in most of its markets, and supplies many of served areas needing pharmacy services,” said those needs from a central fill site located in Fargo, Thrifty White EVP pharmacy Gary Boehler. N.D. With a well-orchestrated delivery route using Advances in technology have helped the chain couriers, deliveries can be made in one day — a serv- THRIFTY WHITE best reach customers in the North Dakota, Iowa, ice that helps keep nursing homes viable. Sales 2008: $304 million Montana, South Dakota and Wisconsin markets it The chain also works with North Dakota State RX Sales 2008: $276.64 million serves. Since 2003, the chain participated in a tele- University College of Pharmacy to introduce stu- Store Count: 86 pharmacy program, which allows certified pharma- dents to the telepharmacy concept.

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Discount Drug Mart illuminates savings BY ALARIC DEARMENT stores that will deliver combined energy and mainte- savings compared with the previous system, or more nance cost savings equal to the margin earned on than $560,000 per year across the 37 retrofitted stores. MEDINA, Ohio — While its name suggests that it cuts $14.2 million in sales over the life of the new lamps. The chain also announced last September that it customers slack on prices, Discount Drug Mart also The chain enlisted United Resource Group to had sold its pharmacy benefit manager, Immediate has made an effort to give itself a few discounts. find out how to address the inefficiencies of the Pharmaceutical Services, for $40 million to PBM The Medina, Ohio-based retail pharmacy chain, lighting schemes in its 25,000-sq.-ft. stores. It con- HealthExtras. Analysts had expected IPS’ annual which operates 67 stores throughout Ohio, has ducted a test at a store in Avon Lake, Ohio, with revenues to decline by up to $100 million. installed new General Electric lighting fixtures at 37 10 fixtures installed. But the 40-year-old chain has offered discounts “Our store manager noticed right away that he to its customers, too. To compete with such retail- DISCOUNT DRUG MART liked the new versus old lighting,” co-COO John ers as Target, Walmart and others, Discount Drug Sales 2008: $518.9 million* Wright said in a statement in September 2008. Mart announced last October that it would reduce RX Sales 2008: $248.15 million “We initiated this project with a primary focus on the price of its 30-day generic discount program Store Count: 68 improving operational efficiency.” from $4.50 to $3.99, as well as offer 90-day sup- *12 months ended March 2008 versus 12 months ended March 2007 The lighting system delivers about 30% in energy plies for $9.99. Bartell fights failing economy with new technology BY ANTOINETTE ALEXANDER of press time, the system was being tested and is expected to roll out later this year. Two years ago, the SEATTLE — Like many others in the industry, George company upgraded its POS system and, a year Bartell, chairman and CEO of Bartell Drugs, is brac- before that, opened a new warehouse. ing for the New Year as the industry wades through The company also is gearing up for its entrance a string of regulatory issues and the economic into Issaquah, Wash., an area it has been looking to crunch. But with a history that dates back 118 years, enter for a number of years. it is safe to assume the company has witnessed its “The market is appealing for a couple of reasons. share of ups and downs and, with the help of a new One, we listen to our customers, and we have had pharmacy system and entrance into a new market, more requests from people out there for a store in 2009 just might be on the upswing for the chain. BARTELL DRUGS their area … [And two], the demographics are pretty “We try to be nimble. And I think, in this kind Sales 2008: $350 million good, and it is covered by all of our advertising of uncertain environment, economically, if we are RX Sales 2008: $189 million already, so that part of it was a natural,” Bartell said. nimble, we have the potential to be successful and Store Count: 55 The new 16,407-sq.-ft. store, which will be a standard to gain market share,” said Bartell, who noted that store prototype, is slated to open in fall 2009. it will be important to figure out how to adapt to In the meantime, the chain is wrapping up some Bartell said the company is interested in opening the new ways consumers shop in today’s market major technological improvements, with the imple- additional stores in the Issaquah area, but did not and remerchandise accordingly. mentation of a new pharmacy computer system. As disclose additional details. Drug Fair incorporates new program, management SOMERSET, N.J. — Regional operator Drug Fair been to improve the shopping experience. The every 150 points accumulated, shoppers receive a Group has undergone a great deal of change in most recent evidence of this is the launch of a new $5 coupon printed on their receipt, which can be recent years since retail veteran Timothy LaBeau generic drug discount program. used as cash for their next purchase at any Drug was brought in to reposition the chain after the late Under the Drug Fair Prescription Savings Club, Fair or Cost Cutters store. In addition, members 2005 acquisition by Sun Capital Partners. Today, the announced in late December, members can receive free health consultations, priority schedul- transformation continues with new initiatives for receive 90-day supplies of more than 350 generic ing for flu shots and free prescription delivery. consumers and a new CEO at headquarters. drugs for $9.99 and get discounts on more than In other news, the company announced in Unlike a typical pharmacy retailer, Drug Fair 5,000 brand-name and generic drugs, including September the appointment of Kathleen Group has two divisions: Drug Fair and Cost insulin. The program is designed to benefit both Guinnessey as CEO, reporting to LaBeau. Cutters. The Drug Fair division includes 46 stores the uninsured and those with insurance who need Previously, Guinnessey was SVP and CFO of that sell both pharmaceuticals and general mer- drugs not covered by their health benefits. The Levitz Furniture. chandise, while the Cost Cutters division totals annual enrollment fee is $5 per person. DRUG FAIR 13 larger format stores that sell value-oriented Meanwhile, the company continues to promote Sales 2007: $340 million general merchandise. its We Care rewards card launched in August 2007. RX Sales 2007: $170 million Since LaBeau took the helm in the first half of Card members receive one point for each dollar Store Count: 59 2006, a major focus for the management team has spent at any Drug Fair or Cost Cutters store. For

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Fruth improves back-end efficiency with upgrade BY ALARIC DEARMENT raised more than $24,000 to fund scholarships at universities in West Virginia and Ohio. POINT PLEASANT, W.Va. — Sales at Fruth Pharmacy That same month, Activant Solutions increased slightly since last year, as the Point announced that Fruth would manage business Pleasant, W.Va.-based retail pharmacy chain and point-of-sale operations using the Activant ended its 57th year in business. Eagle software platform. The Business Advisor The chain saw an increase from $135.1 million in software is meant to help Fruth’s executives 2007 to $136 million last year, of which $114 million gauge the chain’s profitability, monitor individual came from pharmacy sales, compared with $113.2 store performance and control inventory across its million in 2007. “Our sales were basically flat for the 25 stores and two warehouses. year,” Fruth CFO Bob Messick said. “It is impossible to try to manage a business “Basically flat” sales haven’t stopped the 56- and make effective executive decisions these days year-old chain from benefiting its local communi- based on quarterly and year-end reports,” Fruth FRUTH ty, though. In August, it sponsored the annual CEO Don Pullin said. “We wanted more timely Sales 2008: $136 million Scholarship Golf Tournament at the Greenhills data so that we could catch negative trends in RX Sales 2008: $114 million Country Club in Ravenswood, W.Va., which time and reverse them, while also identifying and Store Count: 25 included 58 Fruth vendors and employees who making the most positive trends.” Lewis’ growing boxes continue to serve Badlands BY MICHAEL JOHNSEN more than just a typical drug store banking on pharmacy and health and beauty aids to help SIOUX FALLS, S.D. — South Dakota’s hometown drug drive product — across its larger 40,000-sq.-ft. store Lewis Drug had a lot to celebrate in the past boxes, the chain sports a diverse product mix, year. President and CEO Mark Griffin was hon- ranging from home and garden to soft goods and ored with the Spirit of Sioux Falls Award late last from electronics to furniture. year by the Sioux Falls Development Foundation And the concept still is growing. Lewis Drug in recognition of his contributions to the Sioux plans to open a full-service pharmacy inside the Falls community as a local drug store retailer, and Sunshine Foods store in Tea, S.D., this summer. the chain itself celebrated anniversary No. 65. In addition to partnering with grocers like LEWIS Lewis Drug successfully has staved off the likes Sunshine Foods on food and drug combos, Lewis Sales 2008: $143 million of Walmart and Walgreens in serving the bur- Drug has developed strip-mall adjacencies doc- RX Sales 2008: $100.1 million geoning Sioux Falls market since World War II by tor-clinics — recognizing the convenience in Store Count: 30 staying true to one core theme — build a box being just next door to the doctor writing the pre- where customers can find the merchandise friendly associates, and they’ll return again and scriptions long before retail clinics became the lat- they’re looking for at a reasonable price and with again for more of the same. Especially as Lewis is est trend among pharmacy operators. Navarro launches Savings Club for uninsured patients BY ANTOINETTE ALEXANDER The lifetime membership fee costs $9.99 and cov- Medical Care, are part of an affiliation between ers the entire family. Members can fill a prescription Samoho Healthcare and Mercy Hospital. MIAMI — Known for its Hispanic heritage and for 100 pills from more than 400 generic medications. In other company news, Navarro recently related product offerings, Navarro Discount Free, next-day delivery is available, and members named Lee Armbuster its new CEO, replacing Pharmacies has, over the years, developed a also receive a $10 gift card with enrollment, as well Marcio Cabrera. In January 2008, Cabrera, an devout following among Hispanic shoppers. as 10% off on more than 1,500 Premier Value brand MBF Healthcare executive, assumed the role of Today, the 31-store regional chain is taking steps products featured at Navarro. CEO at Navarro. to further enhance its service offerings and is Navarro, which was invested in by private equity Earlier in 2008, Armbuster joined Navarro as stressing the importance of value — a message fund MBF Healthcare in early 2007, also is working COO. Before that, Armbuster was president of that is likely to strike a chord with shoppers, to meet the healthcare needs of its shoppers by open- Supervalu’s Shop ‘n Save division. given the current economic crunch. ing several physician-staffed health clinics with serv- Among the more recent developments is the ices offered in both English and Spanish. NAVARRO recent launch of its Savings Club, a prescription dis- Through a partnership with MediGo, a division of Sales 2008: $350+ million* count club designed to offer patients with little or no Mexico-based Samoho Healthcare, Navarro opened RX Sales 2008: $105 million* insurance discounts on more than 400 generic med- in fall 2008 walk-in clinics inside three Miami-Dade Store Count: 31 ications and free delivery. Navarro stores. The clinics, dubbed MediGo Express * Sales estimated

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Acquisitions bolster Pharmaca’s industry presence BY MICHAEL JOHNSEN Mark Panzer late last year opted for higher alti- upon how our new stores are performing, we’re hop- tudes as he assumed the COO post at Pharmaca. ing to open somewhere between four to six stores per BOULDER, Colo. — Signing a well-known big-box But 2008 had already been a busy year for year,” Barry Perzow, Pharmaca co-founder, chair- pharmacy veteran to the Pharmaca team late last Pharmaca. Before signing Panzer, it already had man and CEO, recently told Drug Store News. year is only the latest example that the company’s secured $20 million in financing last spring, “Pharmaca continues to set the standard for inte- integrative pharmacy concept — which marries acquired two independents and David Maher, for- grative medicine at the retail level,” Perzow has both allopathic and holistic health remedies — con- mer vice chairman and COO for American Stores stated. “Fueled by a consumer-driven movement tinues to put this retailer on the upswing. (Osco/Sav-on) to its board of directors, tapping into toward healthy aging and self care, the convergence Supermarket and drug store pharmacy veteran his considerable experience in retail pharmacy. of western medicine with natural and complemen- The chain almost has doubled in size in the past tary modalities is now embraced by leading teach- PHARMACA year. Now at 23 stores, Pharmaca has added 11 loca- ing hospitals and medical centers. Pharmaca’s Sales 2008: $120.5 million tions — three through acquisition. The chain plans to growth demonstrates that we are the compelling RX Sales 2008: $65.1 million open an additional two to three locations through its destination for those seeking a healthier, more Store Count: 23 current fiscal year, which ends in June. “Depending proactive lifestyle.” Ritzman moves ‘alternative health’ on up to the East WADSWORTH, Ohio — Ritzman Pharmacies, a 10-store And Ritzman has been playing the natural well- least since 1999, when it transformed its Hudson, pharmacy chain located primarily in and around the ness game a little bit longer than either Pharmaca or Ohio, store from a traditional pharmacy into a Cleveland area, is oftentimes grouped together with Elephant Pharmacy, both of which emerged earlier regional center for prescription compounding, West Coast natural, traditional pharmacy hybrids this decade. Ritzman, two years shy of anniversary patient information and natural health and wellness. like Pharmaca and Elephant Pharmacy given No. 60, has been playing in this wellness space at While the backbone of the business still is filling Ritzman’s heritage in natural care and wellness. The traditional prescriptions, Ritzman executives are just difference is that Ritzman has been making its natu- RITZMAN as at home in less-than-traditional venues. For exam- ral position work back East, catering to consumers Sales 2008: $37.4 million* ple, Ritzman VP operations Jon Fiume is a frequent who are assumed to be less inclined to turn to herbal RX Sales 2008: $33.2 million* speaker at the NatExpo conventions, marketplace- remedies or homeopathy to cure what ails them, Store Count: 10 style meetings that cater to the specialty channel and especially as compared with their Colorado or * Sales estimated has led reserved trips to the Amazon Rainforest to California cousins. explore new natural remedies.

The Wild Card Ricky’s gains hair care share with salons

BY ANTOINETTE ALEXANDER merly known as Shears Hustle & Blow, have been month the private-label Mattese cosmetics line. rebranded as Love Ricky’s Style. The revamped line will have an improved look NEW YORK — It may not operate pharmacy or even “The plan is to roll out a salon in every location. and feel. Ricky’s also will continue to grow its have much of an OTC presence, but Ricky’s NYC Hopefully, we can accomplish that in 2009. ... It is skin care business. is the ultimate beauty destination, with its edgy, a goal of mine,” said president Dominick Costello, While New Yorkers are well-acquainted with ultra-hip store. The home-grown chain has devel- who noted that a private-label hair care brand Ricky’s, others throughout the country also soon oped an almost cult-like following among New eventually could be sold in stores. may be, as the company eyes plans for expansion. Yorkers. Now, the company, which is big in hair Opening a salon in every location is no small There are no short-term plans to enter a new city, care, is looking to further tap into that market feat, and Costello acknowledged that the compa- but it certainly is on the company’s long-term “to- with the rollout of in-store hair salons. ny will proceed cautiously in 2009, given the cur- do” list. In New York, the 22-store chain currently has rent economic conditions. Yet, unlike some com- “We are putting the pieces in place to go two in-store hair salons in Soho and the East panies, 2008 proved to be Ricky’s best year ever. national,” Costello said. “In an ideal world, Village and, as of January, will have a third salon “Those numbers were on top of 10% growth in within a year, we are going to start touching located inside the new Ricky’s store on Columbia 2007 [same-store sales], so we are very happy ground somewhere.” University’s campus. Ricky’s Miami location also with where we are at,” Costello said. “This year, has a hair salon. we are just really tightening our belt and making RICKY’S Since the openings of the Soho and East Village sure we get through the lean months.” Sales 2008: $40+ million salons, Ricky’s management team has taken full Aside from implementing in-store hair salons, Store Count: 22 ownership of the salon concept. The salons, for- the company also is working to relaunch this

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more than 30 Super D stores pendent pharmacy owners, as through a well-executed com- and bad economic times. But USA Drug and three Ike’s deep-discount well as in-store clinics under a bination of folksy, small-town the company’s aw-shucks CONTINUED FROM PAGE 8 stores in Tennessee; and 16 partnership with MedBasics personalized service, commu- approach to local retailing stores in Oklahoma and Super D stores in Mississippi. Family Health Centers. nity outreach activities and a masks a sophisticated array of southwest Missouri; nine USA/Super D also offers a USA Drug stores connect keen sense of what its cus- data-driven systems for Super D stores in Missouri; full-service franchise to inde- with their communities tomers want and need in good replenishment, demand fore- casting and inventory control. The chain took another step to advanced technology last A GENTLE PUSH is fall, when IBM and USA Drug all that's needed jointly announced a new part- to open a drawer nership to design a new point- of-sale system and roll it into all 159 of the company’s drug stores. “This upgrade will allow each store to meet new A SINGLE LATCH locks or unlocks ALL drawers technology requirements and at once goals for growth,” IBM stated. Kerr CONTINUED FROM PAGE 8 In November 2007, Kerr debuted a new store format that culminates a decade of experimentation in health and pharmacy retailing, front-end convenience merchandising and even coffee shop opera- tions. The so-called “hybrid” store, in Sanford, N.C., com- bines such leading-edge clini- cal care concepts as diagnostic Tested to comply with CE standards services and community out- 7.75"W x 1.88"D x .88"H reach programs with a full- scale drug store and café. In September, Kerr’s com- The PROBLEM munity outreach efforts HANDY size and the Fully two thirds of all patients fail to take their medicines as included a new fundraising highest quality food prescribed. Last year, pharma companies lost a staggering $30B program for wounded veter- grade plastics from scripts and refills that were never filled. How much of that ans of the wars in Iraq and could have been yours? Afghanistan, called HELP Wounded Tarheel Troops. The SOLUTION Kerr’s store count remains essentially unchanged over Studies have shown that the use of a pill case (i.e. VitaCarry) can EVERYONE can enjoy help to increase compliance by as much as 450%! the past two or more years, at the NEW pushbutton 102 units in North and South designs - available as Advising customers to use better adherence tools may increase Carolina. But that number is AM/PM, 14 Day, 7 Day sales at the prescription counter. Even more rewarding - healthier deceptive, and masks a steady outcomes may be achieved as a result. Doesn't it make sense to and ongoing program of reno- offer the best and most effective tools available to help your vation, relocation and upgrad- customers get and stay healthy? ing within the chain’s store ROOMY drawers are base as the chain spruces up contoured for safe and VitaCarry brand products can be found in Walgreens, Walmart, and expands existing stores, easy access to contents Costco.com, Kinney Drug stores and other fine retailers. adds new healthcare centers and moves some units into 585.340.6167 phone larger and more productive 585.340-6236 fax nearby locations. [email protected] email 2009 is no exception. ATTRACTIVE PACKAGING VitaCarry is a registered trademark of Variant Products, Ltd. Rochester, NY lures customers who www.variantproducts.com | Patents Pending “We’ve got four stores relocat- want to learn more ing from strip centers to free- Providing a NEW standard standing locations this year,” of care for medication adherence. said Kerr’s director of market- ing, Diane Eliezer.

7 • January 19, 2009 www.drugstorenews.com Drug Store News