Thrift dazzles Raleigh with new Kerr format

Drug Store News, Oct 9, 1995 by Lisa I. Fried

RALEIGH, N.C. - Thrift Drug's Kerr Drug unit opened the company's largest drug store to date Sept. 21 here, and unveiled plans for four more custom-designed stores to open in the state.

At 25,000 square feet, the new Kerr outlet is significantly larger than Thrift's current models, which range up to 18,000 square feet in size. The new store, located in the upscale Cameron Village shopping center, features a coffee bar, sweet shop, fresh flowers and many aspects of Thrift's upscale prototype stores. It also includes the company's recently enlarged "At Your Service" counter, which offers key duplication, document faxing and other services.

The store is located in the same shopping center where Banks Kerr, founder of the Kerr Drug chain, opened his first store in 1950. That store, which was approximately half the size of the new store, was doing well, according to Kerr, but was overcrowded. It was closed with the opening of the new unit.

Thrift purchased Kerr in February. Anthony Civello, president of drug stores for Thrift, used the grand opening to communicate his chain's intentions to the Raleigh-Durham market, which was the platform for Kerr's growth.

"Kerr Drug is an important part of this community because of the excellent relationships that have grown since 1950 with customers, suppliers, landlords and the entire community," he said. "The marriage between Thrift Drug and Kerr Drug has been a good one and will continue to be a good one because of the similarities and common values of both companies."

Custom-designed store

With regard to the store, Civello said that Thrift and Kerr "custom designed" it to serve the Cameron Village customer and the local community. "It is a unique, one of a kind ... one-stop shopping store."

"Thrift's strategy is to reposition stores by tailoring the front-end to the community," Bill Baxley, director of operations, merchandising and marketing for Kerr Drug Stores, told Drug Store News during the grand opening. Cameron Village's upscale mix of merchandise and services was tailored to the relatively high-income communities of North Raleigh and downtown Raleigh.

Thrift plans to open four more large-scale specialty stores in North Carolina in the near future, using the Cameron Village prototype as a model, but not necessarily incorporating the breadth and depth of products and services, Baxley said. This year the chain will open two such stores in nearby Cary, N.C. and a third in Holly Springs. Wake Forest has been designated for next year.

A sensory adventure

The most unusual aspect of the store is Sunbeans Cafe, a coffee bar and sweet shop. "Coffee shops are opening in malls," said Baxley. "We want to take the excitement of the concept and combine it with the convenience of a retail setting."

The Cameron Village store is such a departure from Kerr's prototype that the chain created a directory to guide consumers through it. The directory and circular invite customers to "experience a new concept n shopping," and the store definitely delivers it.

"Years ago people came to a drug store for other reasons than to pick up a prescription," said Judith Granato, director of marketing services for Thrift. "They sat at the soda fountain and shopped. We want to return to that time."

The chain immediately tries to create a unique experience at the entrance of the store. The outlet's front right corner is a sensory adventure. Aromas of fresh-ground coffee, sweet chocolate and fresh flowers beckon customers inside. Sunbeans Cafe, a combination coffee bar and sweet shop, serves flavored and traditional coffees, espresso drinks, cookies, pastries and chocolate and candy by the pound.

While waiting for their orders to be ready, customers can browse nearby displays of wine and champagne and gourmet food.

Nearby is a gift basket department and vast bath and body section, both staples of Thrift's upscale stores. Last year, the chain created 12,000 gift baskets in its home market of Pittsburgh alone, so the gift department certainly has a great deal of potential. In the Cameron Village store, customers can buy a pre-packaged gift basket or grab individual gift items from the store and create their own baskets.

The cosmetics department has cosmeticians on hand to help customers with a range of upscale fragrances and cosmetics brands, as well as designer jewelry.

Necessities corner

The left corner of the store is geared toward everyday necessities and services. A bright yellow "At Your Service" sign showcases the long list of conveniences offered at the service department, including laminating, a notary public, shoe repair, one-hour photo, Western Union, gift wrapping, wedding invitations, party supplies, copying and fax service and shipping.

Elsewhere in the store, aspects of Thrift's upscale prototype help make the shopping experience interesting. Gondolas filled with everything from Mikasa china to bath beads to books of fairy tale are strategically placed to catch customers' eyes, and keep them interested and draw them down each aisle. The convenience food department comprises a wall of refrigerator cases and three aisles of snacks and food.