Lewis targets home decor customers with upscale, Pier 1-inspired collection

Drug Store News, Oct 11, 2004 by Antoinette Alexander

SIOUX FALLS, S.D. -- Lewis Drug is gearing up its front-end mix to compete with the big players, but it's not who you might think.

Lewis Drug, which borders on being a mass merchant with its extensive front end that accounts for 50 percent of sales, will begin offering a new home decor collection next month that will have the look of Pier 1 Imports with a mass merchant price tag, said Doug Schroeder, a buyer for Lewis Drug.

Much like Pier 1, the line offers shoppers the ability to decorate their home with exotic-looking pieces that can be mixed and matched. The collection, most of which comes from China, will include hundreds of items, such as candles, lamps, tables, chests, vases and wall decor. Prices will range from $10 to $100.

"We are bringing in items from around the world and changing our entire, furniture concept to a whole home decor idea, Schroeder said.

The collection initially will be offered in eight of Lewis Drug's 22 stores and likely will be expanded to more locations if the line is successful.

Lewis Drug, which has stores averaging 35,000 square feet in size, already has a foothold in the furniture segment, selling such items as leather recliners and entertainment centers.

The margins are attractive--roughly 40 percent--and the products enable Lewis to compete better with its rival drug chains. The assortment also enables Lewis to target shoppers who frequent such nearby retailers as Pier 1 and Target for home decor.

Schroeder said the current furniture selection pulls in about $500,000 per year, but he expects that number could double easily with the new offering.

However, in order to boost its sales in the home decor arena, Lewis Drug will have to position itself in the consumers' mind as a point of destination for home decor--a feat some may consider bold for a pharmacy retailer.