Cloud of Sept. 11 still darkens lucrative NYC market: Manhattan-based Duane Reade continues to dominate its home turf, as it has mastered the science of nailing prime locations and making the most of small, pricey real estate space

Drug Store News,  June 6, 2005  by Antoinette Alexander

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The 20-store chain, which also now operates two Miami stores and one in East Hampton, N.Y., is well known for its Halloween offering, but is working to focus on its core business: beauty. Such a move will mean greater competition for the beauty business at drug chains in New York, including Duane Reade, Rite Aid, CVS, Brooks-Eckerd and Walgreens.

As part of the effort, the company is taking a closer look at Mattese NYC, its private label makeup artist line. The company is working on a relaunch and may expand distribution for the collection into some overseas and local, noncompeting retailers.

Over the next few years, the chain is looking to expand nationwide and is eyeing major metro markets.

NEW YORK: WHO'S WINNING *

                  2004 Rx      2004 front-end     Total stores
                market share   market share (")       w/Rx

CVS                 25.0%           21.6%             416
Duane Reade         15.6            21.8              240
Rite Aid            12.9            14.2              301
Brooks-Eckerd       11.5            10.8              208
Walgreens            6.6             7.8              105

Source: Chain Store Guides 2004 Drug Industry Market Share Report
Market defined as greater New York area, including New York City,
Long Island, Westchester, Rockland, N.Y.; Bergen, Essex, Hudson,
Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex
and Union counties in N.J. (") Reflects drug stores only

NEW YORK: THE STAKES *

Population                                    18,702,285
No. of households                              6,804,695
Median disposable
  income ([dagger])                              $44,995
Total Rx sales **                               $7,268.6
Total front-end ([dagger][dagger]) sales **     $3,794.1

THE SIDES

Drug stores                                        2,468
Supermarkets                                       1,234
Mass merchants                                       269
Warehouse clubs                                       51

Source: Chain Store Guides 2004 Drug Industry
Market Share Report

* Market defined as greater New York area, including
New York City, Long Island, Westchester, Rockland,
N.Y.; Bergen, Essex, Hudson, Middlesex, Monmouth,
Morris, Ocean, Passaic, Somerset, Sussex and
Union counties in N.J. ** Sales in millions ([dagger]) Per
household ([dagger][dagger]) Reflects drug stores only

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