Walgreens Store Remodels

[Alpha8472]

This is a little late but Walgreens announced in May 2009 that by Fall 2009 that 400 of their 6,700 stores would have the new Walgreens store design. It features reduced product selection by 15-20% and lowered shelf heights to improve department visibility and sight-lines. Walgreens says that they will roll out the changes nationwide in 2010.

Has anyone seen examples of these remodels? Do the lower shelves really improve the look of the stores?

[tesg]

I've been in three different stores locally in the past couple of months and there's been no change.

I assume the "lower shelving" thing is being copied from CVS. I suppose that helps fend off shoplifting a bit...

[storewanderer]

None in Northern Nevada, and some stores in Northern Nevada are just a few months old and did not open with this new design.

I have heard this new design has resulted in sales losses in the converted stores due to less product mix and fewer impulse buys. Walgreens really needs to make some adjustments to their overall operation given the shoddy merchandising, junk all over, low quality private label home items (the private label OTC stuff seems fine), and store cleanliness and organization. Their format from what I am seeing is not working as well in suburbs as they expand as it works in the larger cities that are densely populated.

It also seems Walgreens and CVS are engaged in a reckless battle over who can build the most stores, closest together, the fastest.

[Alpha8472]

They did studies on grocery stores and customer opinions on discontinuing items. The research found out that customers were much more upset over the store discontinuing items than high prices. When you have prices, people can choose either to buy it or not to buy it. However, if you discontinue an item that people like, it enrages them. They feel as if it is a personal attack. Lack of selection is a main cause for people to patronize other stores where the selection is better.

The last thing Walgreens should be doing is reducing selection. CVS reduced the selection of many items as Longs stores and they lost quite a few customers. Walgreens already has a bare bones selection of basic products. Reducing items is just going to make things worse. Saving a little bit of money by not stocking as many products will backfire. Customers will shop somewhere else where the selection is much better.

It's the little things that matter. Reducing selection and getting rid of employees might save a little bit of money in the short run. Cutting employees leads to long lines and upset customers. All the drug store chains can think about is cutting costs and saving money, but the customers are the ones who will get angry and leave.

[storewanderer]

The drugstore chains in CA have a slightly odd position as being more of a general merchandise store. These East Coast Drugstores want to be just that: a drugstore. They want to sell prescriptions. If you pick a small OTC item up on the way out great but that is not their focus at all.

Walgreens mix is larger than an East Coast Rite Aid or a standard CVS (non former Longs) product mix but it appears what Walgreens is trying to do is get things down to a CVS style mix.

The real hole from Walgreens is liquor. Even in the stores that have liquor (such as the former Rite Aids in San Francisco), the mix is not good at all and like a 7-11.

[Super S]

Walgreens has recently applied to sell beer and wine at several stores in Washington state. There are many people who prefer smaller stores and like the convenience factor. As for drug stores being a general merchandise store, that was true for many years in Oregon and Washington as well, Payless had apparel departments and full sporting goods departments among other things, but Payless even scaled that back before they were acquired by Rite Aid. Rite Aid trimmed the selection even more as evidenced by shelves blocking off areas of many older stores around here.

[Brian Lutz]

Walgreens has recently applied to sell beer and wine at several stores in Washington state. There are many people who prefer smaller stores and like the convenience factor. As for drug stores being a general merchandise store, that was true for many years in Oregon and Washington as well, Payless had apparel departments and full sporting goods departments among other things, but Payless even scaled that back before they were acquired by Rite Aid. Rite Aid trimmed the selection even more as evidenced by shelves blocking off areas of many older stores around here.

If you go back far enough, you can even find Pay 'n Save ads showing appliances being sold in their stores. In fact, a 1971 ad I just saw earlier this week for Marvel Morgan Drugs (a Rexall store in Bellevue, I believe it was an independent) advertised TVs and stereos being sold in the store, with financing being offered.

[Alpha8472]

I have noticed that Walgreens has added some gourmet food items just like Rite Aid. They are using similar wire metal shelves, and they are selling gourmet crackers, cookies, sauces, as well as other items. Rite Aid added these items after Longs Drugs disappeared. Now Walgreens seems to want to get into the gourmet food business.

[storewanderer]

Walgreens has live plants out front here in NV now too. Next to nothing inside for garden supplies and stuff though. No gourmet food. Maybe they will work on improving the corresponding items in future years.

Funny they bit the bullet and did all this I assume in light of CVS. I think Walgreens is too concerned with playing a game of who can beat who with CVS but many of the moves made are not moves that the customer cares about or in some cases risk really annoying the customer. Walgreens needs to worry more about itself.

Walgreens isn't doing very well and they are appearing kind of desperate. These merchandising efforts "on the fly" only add to that appearance.

How are they doing with adding liquor in CA? Do any stores have it yet besides the former Rite Aids in San Francisco? Their liquor mix was so poor in those I don't know if it was even worth the effort.

[Alpha8472]

I have not seen any liquor in the Walgreens near me in the East Bay of the San Francisco Bay Area. They seem to be moving very slowly with that right now. I don't know if liquor would be all that profitable for Walgreens. Their prices on regular drinks like soda are already quite high. I think their liquor prices would be the same as convenience store prices. In some cases, I think convenience stores would have a bigger selection of liquor.

The current refrigerated section at my local Walgreens simply isn't big enough to carry much of a liquor selection. They would still have to install many new refrigerated units. My local Walgreens has been clearing out several rows of merchandise and moving all of the contents of the store. I assume this is being done in preparation to install new refrigerators for the liquor.