REGIONALChainReport Even as the big get bigger, it appears the industry’s top re- gional chains continue to grow in relevance and importance in the markets they dominate. In this special section, DSN pro- fi les the top 25 regional pharmacy chains in food, drug and mass, with a special focus on what makes each one unique. Section by: Antoinette Alexander, Alaric DeArment, Jim Frederick and Michael Johnsen H-E-B Hy-Vee Fred’s

Store count: 1,046 Store count: 330 Store count: 228 Store count: 232 Store count: 695 2010 Rx sales: $1.5 billion 2010 Rx sales: $1.2 billion 2010 Rx sales: $1.1 billion 2010 Rx sales: $942 million 2010 Rx sales: $628 million Region: Southeast Region: Texas Region: Pa., Ohio Region: Midwest Region: Southeast

When Publix Super Mar- H-E-B has expanded its Perhaps the greatest In any industry, it be- If you’re ever curious kets roared out of its home “Mi Tiendo” Latin format point of differentiation hooves a business to set what it would look like if state of Florida for the fi rst into the Austin, Texas, attached to Pittsburgh- itself apart from its peers, a dollar store were to hang time in 1991 to open a store market to help differenti- based grocer Giant Eagle which West Des Moines, a pharmacy shingle on its in Savannah, Ga., it brought ate itself in a heavily pop- is the number of innova- Iowa-based supermar- storefront, Fred’s may be the with it 61 years of expertise ulated Hispanic area. The tive formats the gro- ket chain Hy-Vee does by best barometer as to how in customer loyalty and a concept has been avail- cery operator showcases making itself a destination successful those pharma- tradition of friendly, family- able in two locations in to meet the diverse needs for health and wellness. cies would be. Through No- style service. That tradi- the Houston market. of its customer base. When chairman and CEO vember 2011, revenue from tion continues. The remodel will incor- Giant Eagle opened the Ric Jurgens retires in June, Fred’s more than 320 phar- Publix is now the coun- porate 6,000 sq. ft. of selling fi rst of its HBW (health/ he’ll leave behind a chain macies represented 34.2% try’s largest and fastest- space to incorporate Latin- beauty/wellness) depart- that has introduced such of its overall business, up 40 growing employee-owned centric grocery fare, includ- ments — a new well- innovations as in-store basis points from a year ago. chain, with al- ing a masa factory that ness format that helps dietitians, in-store chefs For the year, Fred’s is pro- most 1,050 stores and more grinds corn daily, a tortilla- bridge pharmacy and a and a partnership with jecting $1.9 billion in sales, than 820 in-store pharma- producing machine, and more natural, wellness- Amber Pharmacy to pro- up between 2% and 4%. cies. Its drawing power is a butcher and deli featur- oriented front end — in vide specialty pharmacy The chain has migrated built on a base of satisfi ed, ing Latin cuisine. 2009. And Giant Eagle in services through its stores. many of its pharmacies to customer-focused employ- Across its pharmacy mid-January opened its The chain also has recently the front of the store, an ees/owners — the chain base, H-E-B pharmacists fi fth Market District lo- said it would expand its initiative that has netted consistently scores high in have been offering health cation in fi ve years. The Blue Zones Lanes, which a 20% lift in overall sales- lists of admired companies screenings for blood Market District concept were launched last spring. per-square-foot in those and top workplaces — and a pressure, glucose and is geared to Giant Eagle’s The fi xtures replace the refi tted stores. reputation for no-gimmicks cholesterol every second foodies, featuring food junk food usually seen Beyond pharmacy, Fred’s value; health and wellness Saturday of the month from 19 countr