Phar-Mor opens No. 300; denies plans for IPO - Ashtabula, Ohio store, initial public offering

Discount Store News, August 3, 1992 by Tony Lisanti

ASHTABULA, Ohio -- Phar-Mor, which now calls itself the nation's biggest deep discount store chain, opened its 300th store here last week with more fanfare than at all of its previous 299 stores.

From a live satellite broadcast to a store tour led by Michael "Mickey" Monus and other senior executives, Phar-Mor choreographed an uncharacteristically high profile grand opening as one of six anchors to the 70-store Ashtabula Mall, located about 55 miles northwest of Cleveland and 40 miles south of Erie, Pa.

Phar-Mor executives flatly denied persistent rumors that the privately held chain was planning to go public in the near future. One spokesperson said, "The recent infusion of cash from several investors was sufficient to fuel the growth of the chain's five-year plan."

The Youngstown, Ohio-based chain, which also eliminated the word |drug' from its tagline (see editorial page 9), will open 40 more stores by year-end for a total of 340 units. Its five-year plan calls for 60 stores per year through 1995.

Phar-Mor will go head-to-head with Kmart, which will open its newest prototype store, including a pharmacy, later this month on the opposite side of the mall. Sears opened at the same time as Phar-Mor, but most other specialty stores and anchors will not open until the fall.

The 66,000-sq.-ft. store, boasting 40,000 products in 10 major product categories, featured some of the newest design and merchandising strategies, including several store within a store concepts, electronic couponing and information kiosks, and a new pharmacy computer system. Newest features of the store include: * Everything Rubbermaid. This new store within a store concept, features "almost every product Rubbermaid carries," Monus said. Both sides of an aisle are set apart from front to back with colorful signs and banners promoting "Everything Rubbermaid." * Team Phar-Mor. This new and expanded shop concept features a full line of licensed college and pro team sportswear and merchandise tailored to the local area. It was first unveiled last year, marking the chain's first entry into soft lines, and is currently in 65 stores. A company spokesperson said the chain will further test soft lines with a full line of basic fleecewear tied to the back-to-school season. * Movies and Music. This self-contained department has a full-line of compact discs, cassetts, video games and tapes. A full movie rental department is included offering three videotapes for two nights for $1.99. * Pharmacy computer system. This new computer system, according to vp of pharmacy Bob McCurdy, enables Phar-Mor "to print a unique label for prescriptions with patient counseling information" beyond just the standard dosage and guidelines for a particular drug. * Interactive video kiosks. The new health information center, called "Practical Prescriptions for Good Health," offers customer information on 4,000 prescription and over-the-counter medications. The computer, located in the pharmacy department, prints out information and can also measure blood pressure. Another kiosk called "Saving Center" dispenses free money-saving coupons.

Phar-Mor is also testing a full frozen foods department in four stores, optical centers in two stores, and Mrs. Fields cookie stores in several locations. It continues to expand its home office department with electronics and ready-to-assemble furniture.

A distribution center serving the southeast will open in Jacksonville, Fla., in October.

Phar-Mor, which employs over 25,000 people, was recently ranked 49th in Forbes Magazine's Top 400 list of privately held companies.

Sales for the fiscal year ended June 30, were $3.14 billion, a 26% increase over the $2.49 billion reported in fiscal 1991.