Author Topic: A drugstore on nearly every corner...is this your area, too? (Read 7622 times)

Manedwolf · « **on:** April 10, 2008, 05:59:44 AM »

This is something that's really been happening just in the last year or so here, and also just getting even more concentrated when I visited S. Florida.

There's a drugstore, a mega-drugstore, usually, popping up on seemingly every corner. At least every mile.

CVS, Walgreens or Rite-Aid. Often across the street from each other, and then on the next block, there's another! And another, and another...They're usually built in only a few months. They just opened two mega-sized Walgreens within one mile of each other on a 2-lane stretch of Daniel Webster Highway in not-very-crowded Merrimack.

Is there really that much of a market for drugstores? It doesn't even seem like the population of the local area could support the lease of the land, but they're there.

It's going the same way as a Lowes or Home Depot or other big box store every five miles in a cluster with ApplebeesFridaysRubyTuesdayChilis, but with far more concentration.

Do you see that in your area, too? How many drugstores can a market support? O_o

mtnbkr · « **Reply #1 on:** April 10, 2008, 06:02:38 AM »

We're on the downhill side of that trend now. Some have closed up and become other businesses. They do tend to be less pure "drugstore" type shops and more "convenience/grocery/drugs" oriented.

Chris

charby · « **Reply #2 on:** April 10, 2008, 06:06:17 AM »

We went through this in the 90's here in Iowa. As Mtnbkr said it is on the downslope. Seems like the ones that made it are the bigger stores.

Manedwolf · « **Reply #3 on:** April 10, 2008, 06:15:05 AM »

Sounds like they ran into what I'm theorizing, that there just isn't the population to support that many of the same stores, not enough to cover land lease or property tax, employee pay, suppliers, HVAC, utilities and to make a profit!

I don't mind the ones in my area so much because the local building codes (literally created by town residents in Town Meetings) tend to make them at least have a facade of Cape-style grey wood, 19th century brick or such, rather than the postmodern blandbox I see elsewhere. If they fail, they can be something else. It's not like a dead big-box, which tends to become an empty big-box forever.

I just wondered at the market oversaturation! Whether anyone else's area is becoming that. Hearing that some other places already have been there and done that, it makes me wonder why they seem to be repeating the pattern that didn't work elsewhere, here, all over again.

HankB · « **Reply #4 on:** April 10, 2008, 06:54:05 AM »

In my town, they recently opened a CVS diagonally across an intersection from a Walgreens.

When I've been to Tucson, I got the impression that Walgreens drugstores were as common as Starbucks in some places . . .

Boomhauer · « **Reply #5 on:** April 10, 2008, 07:11:20 AM »

Huh. Yeah, that's happening here, too.

Worst I've seen is three at an intersection, CVS, Walgreens, and Rite Aid (used to be Eckerds here), each taking a corner...

Manedwolf · « **Reply #6 on:** April 10, 2008, 07:18:26 AM »

Quote from: Avenger29 on April 10, 2008, 06:11:20 AM

Huh. Yeah, that's happening here, too.

Worst I've seen is three at an intersection, CVS, Walgreens, and Rite Aid (used to be Eckerds here), each taking a corner...

In Londonderry, there's one on each of four corners at an intersection.

AJ Dual · « **Reply #7 on:** April 10, 2008, 07:27:39 AM »

Yep, happened here in the Milwauke metro.

One major north-south arterial that cuts through several western Milwaukee burbs has a Walgreens every 1-2 miles or so.

The major chains are knowingly oversaturating various markets to drive each other out.

Declaration Day · « **Reply #8 on:** April 10, 2008, 08:22:02 AM »

That already happened here. Years ago, Rite Aid bought up all of the Perry drug locations and CVS bought out Arbor drugs. Soon after, Walgreens came to Michigan. Then the war started. There was one or two drug stores built on nearly every major intersection. Within two years, half or more of them shut down. What a tremendous waste of money. Some of the vacant locations became dollar stores, one is a pet food store, but most of them remain vacant.

Finch · « **Reply #9 on:** April 10, 2008, 08:45:22 AM »

Don't get used to it. All the Rite-Aids closed here in Vegas. Every single one.

Tuco · « **Reply #10 on:** April 10, 2008, 01:06:17 PM »

We've (West central Michigan) had a head to head battle between Walgreens and Rite Aid for the last ten years +/-. For a while, you could make book that if one opened, the other would within a year within 1/4 mile.

I did some development work with Walgreens and they have severe criteria for placing a store (demographics, visibility, traffic counts).

The number of head to heads have declined (rite aid lost) and I've notice Walgreens doing some surgical placements. eg off the beaten path but close to assisted living centers.

There is an excellent case study of Walgreen's marketing philosophy in the book "Good to Great" (or was it Built to Last?). Opened my eyes to the corporate 'dominate or die' mindset.

Corporate Soakers

lupinus · « **Reply #11 on:** April 10, 2008, 01:12:31 PM »

I work for walgreens, plan on seeing several thousand more over the next few years.

They plan on over a thousand new stores a year for the next few years. And thats taking closings/moves into account.

Perd Hapley · « **Reply #12 on:** April 10, 2008, 01:21:36 PM »

Folks are talking about that here in St. Louis Co., too. The difference being that Walgreens is the only national drugstore chain we have here.

taurusowner · « **Reply #13 on:** April 10, 2008, 01:30:57 PM »

I live in Ypsilanti MI, and work in Ann Arbor, and I know of 2 Walgreens, and a CVS that are under construction just on my way to work. And a Rite Aid that opened for business a month or 2 ago. I don't really have a problem with it, I just wish more of them were open 24 hours. All the 24hr ones are about 15 minutes away. I gotta move out of the ghetto.

Manedwolf · « **Reply #14 on:** April 10, 2008, 01:35:09 PM »

Quote from: taurusowner on April 10, 2008, 12:30:57 PM

I live in Ypsilanti MI, and work in Ann Arbor, and I know of 2 Walgreens, and a CVS that are under construction just on my way to work. And a Rite Aid that opened for business a month or 2 ago. I don't really have a problem with it, I just wish more of them were open 24 hours. All the 24hr ones are about 15 minutes away. I gotta move out of the ghetto.

They never put 24 hour pharmacies in bad areas, because addicts rob them for oxycontin.

taurusowner · « **Reply #15 on:** April 10, 2008, 01:36:21 PM »

Yeah I know. Which is why i should move, among a plethora of other reasons. Sad

BridgeRunner · « **Reply #16 on:** April 10, 2008, 02:25:02 PM »

So, is anyone on APS *not* from Michigan?

Actually, I really dislike dealing with these drugstores since the mega-expansions have started. Currently I'm using a CVS because stopping by there fits well into my weekly schedule, but my preference is to use the in-house pharmacies at most medical centers. The pharmacists at these chains may be just as knowledgeable, but I tend to feel a bit skeptical when they're in these dime-a-dozen schlocky stores thrown up overnight.

We've got one of these Rite-Aids within a short walk, but even walking in there is pretty off-putting. Just unpleasant places to be imho.

just Warren · « **Reply #17 on:** April 10, 2008, 02:44:16 PM »

An aging population is part of this trend. More geezers mean more geezer meds sold.

I like the local (2 blocks away) Walgreens. It has a good selection of stuff and is not as expensive as a 7-11 and is easier and faster to navigate than a full service grocery store.

lupinus · « **Reply #18 on:** April 10, 2008, 03:55:46 PM »

BW-

Actually, a lot of Walgreens pharmacists are more knowledgeable then some of the independents or smaller chains I've been in. Clerks and such get paid OK but our pharmacists tend to make damn good money for their field, and they don't hire them at a dime a dozen. Frankly they aren't and many areas are actually sharing them right now cause they are hard to find.

And I find rite-aids depressing lol

Manedwolf · « **Reply #19 on:** April 10, 2008, 04:13:23 PM »

Quote from: lupinus on April 10, 2008, 02:55:46 PM

And I find rite-aids depressing lol

Their new logo on stores isn't even a logo, just the name in bland all-caps sans-serif. All the charm of a hospital storage room door.

lupinus · « **Reply #20 on:** April 10, 2008, 04:17:22 PM »

and once you get inside, it's even worse lol.

Perd Hapley · « **Reply #21 on:** April 10, 2008, 05:02:56 PM »

Quote from: HankB on April 10, 2008, 05:54:05 AM

When I've been to Tucson, I got the impression that Walgreens drugstores were as common as Starbucks in some places . . .

Starbucks are common now? I guess anybody who's sick of Starbucks should move to St. Louis. Haven't seen too many here. Of course, I don't live in the yuppified areas.

Back on topic, I don't like going to Walgreens, due to their silly attitude about abortifacients. Which is their right, of course, I just prefer not to contribute.

Hawkmoon · « **Reply #22 on:** April 10, 2008, 08:56:47 PM »

Quote from: Manedwolf on April 10, 2008, 04:59:44 AM

Do you see that in your area, too? How many drugstores can a market support? O_o

Apparently -- a lot.

Yes, it is happening everywhere. But at least there are three or four chains to compete with one another. Think about poor Dunkin' Donuts. They're building new stores about 500 feet on center, coast to coast. The only compete with themselves, but I guess they prefer that to allowing anyone else even a toehold.

I drove by a gas station the other day that has a Dunkin' Donuts franchise in it (as every gas station around here now seems to have). The building directly behind the gas station is ... you guessed it ... a Dunkin' Donuts store.

Manedwolf · « **Reply #23 on:** April 10, 2008, 09:16:39 PM »

Oh, Dunkin...there's 48 within 10 miles of me.

MillCreek · « **Reply #24 on:** April 11, 2008, 04:54:06 AM »

A new pharmacist, starting right out of school, has a starting salary of $ 85-90,000 if they want to work retail at a Walgreen's CVS or the like.

News:

Author Topic: A drugstore on nearly every corner...is this your area, too? (Read 7622 times)

taurusowner

taurusowner