Drugtown stands by positioning as rural neighborhood chain

Drug Store News,  April 26, 1999  by Tina Kyriakos

• E-mail
• Print
• Link

One of the most ambitious plans recently has been a two-stage disease management program. What started as some basic training on conditions such as asthma, diabetes and high blood pressure has now become an intensive program to certify one pharmacist from each location on a single disease state. Now that a four-month effort targeted at asthma education is complete, Drugtown--as well as Hy-Vee--pharmacists are being trained as specialists in counseling on diabetes management. "These programs give our pharmacists the confidence to counsel even more effectively on a condition and its treatment options," explained Goodhall, adding that despite the lack of reimbursement for these efforts, the chain views it as a selling point with customers, with an immediate pay-off in terms of building loyalty and, perhaps, some long-term paybacks at the cash register. Indeed, a double-digit-13 percent- increase in prescription count in 1998 is one indication of the strength of the chain's professional services.

Growth of all formats

With Hy-Vee's rapid rate of expansion- its numbers have climbed to 179 food/drug combo and supermarket locations alone-it's no secret that upping pharmacy operations will be a key strategy over the next few years. While availability of the right type of locations has meant slower pace of growth for its Drugtown division, plans call for the chain's expansion outward from its base geographically, as well as for higher penetration within key markets.

"We see pharmacy as a growth area for our company, so we'll be looking to add more pharmacies to stores of various sizes in all the communities in which we operate," said Mitchell, noting that all six new supermarkets that opened last year featured in-store pharmacies. While independent owners are generally a source for the free-standing operations, the company often purchases the pharmacy and incorporates it into the supermarket operation. If this has become what Mitchell called a "major thrust" over the past three years, it's because Hy-Vee, like other major chains, is committed to the one-stop shopping trend. Like its food business competitors, the company has found that not only is it a service its customers want, it can help build business in other departments. In fact, Hy-Vee has found that having a pharmacist on duty in the store can, in some cases, double sales of HBC items and nonprescription drugs.

One of the challenges for the chain is finding staff to support its growing pharmacy businesses in its key markets. To that end, Bob Egeland, assistant vice president of pharmacy operations, and Helen Eddy, director of pharmacy education, have not only put a strong push on developing specialized training for pharmacists in disease counseling, but also on certifying technicians who can help free pharmacists to take on a wider role in providing service, which is expected to remain at the top of the company's list as it grows all of its formats.

Hy-Vee Inc.