Drug Stores Add Fresh Food

Pharmacies are expanding their offerings to entice shoppers to stay longer and spend more.

April 08, 2013

LOS ANGELES – Where can you get sushi, frozen yogurt and lattes all at one place? At a Walgreens in Hollywood, the Columbus Dispatch reports.

“Shoppers are just getting more savvy and into buying things online, so drug stores have to evolve to keep customers,” said Dane Leone, a senior research analyst at Macquarie Bank. “They’re also learning that in places like LA and New York, people want the option of picking up high-end fresh food when they go fill their prescription.”

Drug stores are going after the upscale crowd by expanding to fresh food. Walgreens has opened new stores with large alcohol sections and sushi chefs, while Rite Aid is redoing its stores to add gluten-free and packaged organic foods. At some CVS locations, customers can pick up freshly made sandwiches, fruit and vegetables. (See more of Walgreens’ new stores in the 2012 NACS “Ideas 2 Go” DVD.) 

“Drug stores are trying to figure out what their role is,” said Ken Martindale, COO of Rite Aid. “We’re in a new environment where everyone is selling everything.”

With dollar stores enlarging their fresh food selections and discount chains going into groceries, drug stores are trying to keep up by returning to their roots. Pharmacies of the past often served ice cream and fast lunches at soda fountains. Today’s drug stores are looking to become a more upscale version of that.

Walgreens has six similar stores already running, with another 10 being built in Miami and San Francisco, among other cities. “The main thing is, it makes us more relevant,” said Bryan Pugh, a vice president at Walgreens. “If we are more relevant to customers, that makes us more successful.”
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