Save Mart closing pharmacy

California. No non-grocery posts.
reymann
Personnel Manager
Personnel Manager
Posts: 279
Joined: August 13th, 2014, 8:25 pm
Been thanked: 28 times
Status: Offline

Re: Save Mart closing pharmacy

Post by reymann »

kingswood is doing a great job running save mart into the toilet so far. exiting the pharmacy business could lead to more foodmaxx conversions and closing marginal stores that would have otherwise have stayed open.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Save Mart closing pharmacy

Post by storewanderer »

reymann wrote: August 24th, 2022, 6:15 pm kingswood is doing a great job running save mart into the toilet so far. exiting the pharmacy business could lead to more foodmaxx conversions and closing marginal stores that would have otherwise have stayed open.
This assumes Food Maxx format is one they are interested in going forward...

Given the management changes that have taken place, I think it is not clear at this time what exactly the go forward focus will be.

The prior ownership really liked Food Maxx and it saved them from having to close a lot of locations outright, but Food Maxx still rather drastically underperforms WinCo, Wal Mart, etc. An Aldi entry will not help Food Maxx one bit.
reymann
Personnel Manager
Personnel Manager
Posts: 279
Joined: August 13th, 2014, 8:25 pm
Been thanked: 28 times
Status: Offline

Re: Save Mart closing pharmacy

Post by reymann »

on the current path the new ownership is going, i feel like some sort of purge of unprofitable stores could be on the horizon in the near future which could result in food deserts in some areas.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Save Mart closing pharmacy

Post by storewanderer »

reymann wrote: August 25th, 2022, 4:07 am on the current path the new ownership is going, i feel like some sort of purge of unprofitable stores could be on the horizon in the near future which could result in food deserts in some areas.
They have to be careful with this. Part of why the previous ownership kept so many dog stores open was to help spread fixed costs among a greater number of stores. Closing the poor stores, but keeping the same cost structure, will cause some other locations to also look not quite as profitable, as they currently look with those dog stores sitting around to absorb some overhead.

The previous known policy was as long as a store made one cent of profit, it was kept open. I do think they closed some stores that were likely marginally profitable in recent years as leases ran out, but a number of closures were obviously very low volume stores.
bryceleinan
Personnel Manager
Personnel Manager
Posts: 349
Joined: June 1st, 2018, 11:59 am
Has thanked: 2 times
Been thanked: 34 times
Status: Offline

Re: Save Mart closing pharmacy

Post by bryceleinan »

retailfanmitchell019 wrote: August 24th, 2022, 5:26 pm
storewanderer wrote: August 24th, 2022, 4:08 pm
Only one Nevada Store has a pharmacy in the same shopping center, 10500 North McCarran. Nevada Stores were Albertsons/Sav-on combo stores when Save Mart took them over. Most had pharmacy expanded and renovated as part of the combo store program.

In a number of cases there isn't even a pharmacy at the same intersection as the pharmacy Save Mart is closing.

Fatal move for the Nevada Stores. Raleys handled their partial pharmacy closure program in a much smarter manner to retain grocery customers.
I bet Albertsons could buy back these stores. I'd move the stores into Intermountain and slap Albertsons signs on the exterior (while converting the 3 Safeway stores in Reno to the Albertsons name).
10500 N McCarran has a Safeway across the street, so the only competitor that makes any sense (and I’d seriously doubt they’d bite) is Smith’s, since Raley’s already has a location down Mae Anne. Intersection has a Walmart and Walgreens, plus Safeway, with a nearby CVS.

The Kietzke store has a nearby Walmart, and Safeway used to be in the next plaza over, where Floor and Decor is now. Trader Joe’s is nearby, otherwise, not much grocery in the area, other than an IGA that Storewanderer discussed (and is currently closed for remodeling) I can’t remember how this did as Albertsons. There are other pharmacies in the area, so not a big deal there.

Pyramid Highway… that did well as an Albertsons, and I could see Safeway taking it over, bolstering their position out in Sparks. Smith’s would be crazy not to look at it too. Walgreens across the street, and a new Winco nearby. Walmart, Raley’s, and Grocery Outlet at the other end of the valley.
reymann
Personnel Manager
Personnel Manager
Posts: 279
Joined: August 13th, 2014, 8:25 pm
Been thanked: 28 times
Status: Offline

Re: Save Mart closing pharmacy

Post by reymann »

keeping the marginal save marts open in fresno has been great for the seniors with limited transportation and a lot of these marginal stores trend old. the save mart on first/bullard is in rough shape and they have not remodeled since taking over this store from albertsons and now could be on death watch with the pharmacy along with other unremodeled stores that are in rough parts of fresno. west/ashlan and cedar/ashlan could be on death watch. shaw/armstrong is one that they almost converted to foodmaxx and it will be interesting to see if that gets revisited now with the pharmacy closing and a foodmaxx down the street.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Save Mart closing pharmacy

Post by storewanderer »

reymann wrote: August 26th, 2022, 5:12 am keeping the marginal save marts open in fresno has been great for the seniors with limited transportation and a lot of these marginal stores trend old. the save mart on first/bullard is in rough shape and they have not remodeled since taking over this store from albertsons and now could be on death watch with the pharmacy along with other unremodeled stores that are in rough parts of fresno. west/ashlan and cedar/ashlan could be on death watch. shaw/armstrong is one that they almost converted to foodmaxx and it will be interesting to see if that gets revisited now with the pharmacy closing and a foodmaxx down the street.
It looks like a couple of those stores you are referring to there were included in the last remodel program (they did a quick sweep of remodels to a block of somewhat questionable performing stores in 2021). No Nevada Stores got included in that 2021 program.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Save Mart closing pharmacy

Post by storewanderer »

Was in Walgreens in Carson City tonight. Pharmacy line had about 12 customers waiting in it inside, drive through had cars backed up almost to the street (probably 6 cars in line; only one lane was open). The pharmacy closes at 7 PM due to staffing shortages and this was about 5 minutes until closing time. It was not clear what happens with the people who are still in line at closing time, but they were starting to close things...

Appears to be a lot of issues with Walgreens as customers are finding out their insurance isn't accepted when they show up to do a pick up. State of Nevada employees specifically (this is a BIG problem in Carson City).

Good job Save Mart- close two pharmacies, send customers to an understaffed single Walgreens that has to close early due to being understaffed... and this Walgreens features a 1.9/5 rating over on Google Maps (rare to see ANY business with such a low rating)... you can bet where those people who were sent to Walgreens not by choice, won't be doing their grocery shopping...
HCal
Assistant Store Manager
Assistant Store Manager
Posts: 612
Joined: February 1st, 2021, 11:18 pm
Has thanked: 21 times
Been thanked: 67 times
Status: Offline

Re: Save Mart closing pharmacy

Post by HCal »

storewanderer wrote: September 6th, 2022, 11:00 pm Good job Save Mart- close two pharmacies, send customers to an understaffed single Walgreens that has to close early due to being understaffed... and this Walgreens features a 1.9/5 rating over on Google Maps (rare to see ANY business with such a low rating)... you can bet where those people who were sent to Walgreens not by choice, won't be doing their grocery shopping...
I doubt Save Mart cares. Walgreens paid them a pretty penny for the files, so it's their problem now.

But this leads me to wonder, why do people use a supermarket pharmacy? I don't think anyone would say "let me get my prescription filled at Save Mart" if they weren't a Save Mart shopper to begin with. So most of the pharmacy customers were likely already shopping there, and many are likely to continue. They may reduce their trip frequency, but I think the impact on Save Mart will be minimal.

With that said, Save Mart is losing traffic for other reasons, like high (perceived or actual) pricing.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Save Mart closing pharmacy

Post by storewanderer »

HCal wrote: September 6th, 2022, 11:29 pm

I doubt Save Mart cares. Walgreens paid them a pretty penny for the files, so it's their problem now.

But this leads me to wonder, why do people use a supermarket pharmacy? I don't think anyone would say "let me get my prescription filled at Save Mart" if they weren't a Save Mart shopper to begin with. So most of the pharmacy customers were likely already shopping there, and many are likely to continue. They may reduce their trip frequency, but I think the impact on Save Mart will be minimal.

With that said, Save Mart is losing traffic for other reasons, like high (perceived or actual) pricing.
In recent years people are using supermarket pharmacies because they take insurance plans the major chain drugstores specifically Walgreens and/or CVS do not take, and because they have shorter lines/shorter wait times. In the case of Save Mart, their pharmacies provided excellent customer service and you kept seeing the same employees time after time.

People use a supermarket pharmacy because it creates a one stop shop. Most major chain supermarkets have everything a drugstore has (especially in the regions with a larger Kroger chain not Ralphs or QFC, and even some of the Albertsons banner regions) and usually at lower pricing, plus the full grocery assortment. You cut out a stop by going to a supermarket pharmacy. Supermarket visit frequency is typically greater than drugstore visit frequency.

The issue is more of- the pharmacy customer very likely was already shopping there and used that pharmacy because they shopped there. Now they will move to the pharmacy at Wal Mart, Raleys, Smiths... (in the case of Carson City). Why should they continue to shop Save Mart at this point? They will likely find better quality and/or pricing at those other stores and at a minimum that trip involving pharmacy will cost Save Mart the grocery spend from that trip (maybe not the other trips each month). These customers won't stay with Walgreens; many can't due to it not taking their insurance (and CVS doesn't take the State of Nevada insurance either) and the few that may be trying to stay with Walgreens, are being failed by Walgreens understaffed pharmacy with short hours of operation.
Post Reply