Drugstore growth goes upscale
Published 5:00 am Saturday, March 23, 2013
- Customers choose from a variety of sushi made by Hybrid Sushi as drugstores, including this Walgreens in Hollywood, Calif., are going upscale.
LOS ANGELES — At a spot on Sunset Boulevard and Vine Street in Hollywood, visitors scoop up sushi, taste frozen yogurt and order lattes.
But this isn’t a restaurant or even a fancy supermarket. It’s that Main Street staple: Walgreens.
“It’s like an amusement park,” gushed West Hollywood resident Brent Leonesio, 30, as he eyed the line of people waiting to pick up caffeinated drinks to go. “They’ve kind of made this into a destination. It’s actually fun to come here.”
Once mainstays for late-night snack runs and toilet paper emergencies, drugstores are shaking off their stale image and going upscale.
Walgreen Co., for example, is opening glossy stores that feature sushi chefs and enormous alcohol selections. Rite Aid Corp. has been revamping its locations and bringing in packaged organic and gluten-free food.
“Drugstores are trying to figure out what their role is,” said Ken Martindale, chief operating officer of Rite Aid. “We’re in a new environment where everyone is selling everything.”
The $220-billion industry is up against big-box chains such as Wal-Mart and Targett.
On yet another front, drugstores are fighting online merchants that cater to tech-savvy customers who are comfortable ordering mouthwash and prescription medication over the Internet.