Industry Updates: Drug Stores and HBC Chains – May 2013

Personnel Updates:

Pharmasave Drugs, which has more than 475 community retail pharmacies across Canada, has appointed Carmen Churcott as CEO.

Supervalu has appointed Rite Aid president, chairman and CEO John Standley to its board of directors.

Financial Focus:

The Jean Coutu Group reported fiscal 2012 sales of $2.468 billion.

Industry Insight:

CVS pharmacy is planning to return to the Toledo, OH market with multiple locations. CVS Caremark Corp. paid $2.2 million for one property in January after leaving the Toledo market in 2001.

Kinney Drugs expects to complete the rollout of a new store design across its 95+ locations in upstate New York and Vermont. The regional drug chain began revamping its drug stores more than five years ago to better cater to women ages 35 and older, its primary shopper. Kinney Drugs’ 95th store, at Nottingham Plaza in Syracuse, NY, opened in February and features an expanded pharmacy department, including a pharmacist consultation area and a wider range of health products and services, along with a broader selection of personal care items, beauty offerings, groceries, beverages, pet supplies, apparel and seasonal items, and a digital photo center.

Walgreens opened its newest flagship store in Boston. The ribbon-cutting included the presentation of donations totaling more than $100,000 to Boston organizations in recognition of the work by first responders following the tragic events at the Boston Marathon last month. The store also features an enhanced, state-of-the-art pharmacy, LOOK Boutique beauty department, and hundreds of fresh food items.

Rite Aid stores in Buffalo, New York have been remodeled to become the first market in which a majority of Rite Aid’s stores have been converted to the Wellness format.

Real Estate:

Walgreens negotiated a 20-year lease agreement for Ann Arbor, MI’s former Michigan Book & Supply building to build a campus flagship store. Agree Realty and Walgreens have been mostly silent about plans for the high-profile building, but Joey Agree told investors on earnings conference calls that it is being transformed into a “campus flagship” Walgreens store.