ShopKo to trial pharmacy format
US value retailer aims for bigger slice of drugstore sales
July 9 2003
US retailer ShopKo is to trial a standalone drug store concept as the company aims for a bigger share of the growing pharmacy market.
ShopKo currently operates a value variety store format with a focus on clothing, homeware and household goods. It has 89 in-store pharmacies within its Pamida stores division, which offers one-stop shopping in small, rural communities.
The company hopes to open standalone drug stores in two locations next year. The format will feature a pharmacy and opticians, as well as health & beauty, cosmetics, skincare, over-the-counter medications, wellness products, and photo processing. The stores will also offer convenience food and general merchandise.
The drugstore market is growing faster than retail as a whole in the US, and is increasingly being targeted by general retailers such as Wal-Mart, as well as specialists such as CVC and Walgreen.
ShopKo president and chief executive Sam Duncan said: “We are excited to be testing this drug store concept. It is a format that leverages our strength in health services and retailing. Furthermore, the two locations capitalize on the strong ShopKo brand. We anticipate that, once validated, the concept may become a significant growth opportunity.”
ShopKo currently operates 360 stores in 23 US states.
