Drugstores Capturing Grocery Share
By George Anderson
Mike Mallon, vice president of real estate for Dominick’s, told the Chicago Tribune, “Walgreens are popping up on every corner.”
The expanding presence of drugstore chains, primarily Walgreens and CVS, combined with the greater push they are making into food categories has certainly caught the attention
of convenience store operators and traditional grocers.
The Chicago Tribune store says stores such as Dominick’s and it main rival Jewel are seeing sales hit by as much as 20 percent by the growing drugstore count.
Mr. Mallon says, “These smaller stores really are right now a very formidable group.”
Walgreens spokesman Michael Polzin said, “Food is a very important convenience factor for us. It brings people in. If they need something for dinner, or just one or two items
on the way home, they can stop at our store.”
Moderator’s Comment: What are your thoughts on the expansion of the major chain drugstores into food?
ACNielsen (a RetailWire sponsor) reports food sales in drugstores increased 36 percent over the past five years. – George
Anderson – Moderator