Jewel Osco maximizes food/drug synergy

Drug Store News, Oct 20, 1997 by Lisa I. Fried

SALT LAKE CITY -- A customer who walks into a Jewel Osco combination food and drug store knows immediately that the operator of the store. American Stores. is equally committed to both the food portion and the drug portion of its business.

And, now the vendor community has formally recognized this commitment by naming American Stores Combo Operator of the Year for its Jewel Osco stores.

Unlike many food service operators that devote a few aisles to drug store merchandise in the back of a full-service supermarket, American's Jewel Osco stores provide customers with a full-size food store and a full-size drug store within one retail unit.

Indeed, this commitment is what separates them from other food/drug operators, according to vendors. "American Stores has made a bigger commitment to the nutrition category than any other food/drug combo operator," said Barry Drucker, senior vice president of sales for Natures Bounty, a vitamin manufacturer. "Their overall commitment to the category is tremendous, and they are driving sales."

The drug side of the Jewel Osco store provides customers with a complete selection of health and beauty aids, cosmetics, greeting cards and pharmaceuticals. The food side of the store provides them with fresh produce, a wide array of meat and seafood, a full- service floral department, service bakeries and delis.

American is committed to maximizing the synergy between its food and drug operations and the company has undergone scores of structural and management changes to leverage that combined strength.

At the Jewel Osco stores, marketing efforts have been united more than ever, producing greater value for customers shopping these stores. For example, a customer might be offered a buy-one-get-one-free offer that includes an item from both the food and drug store side.

This is a dramatic change in attitude for the company and truly eliminates any walls between the two operations both in the customer's mind and the minds of the corporate staff.