Medic Discount Drugs debuts two latest Cleveland stores

Drug Store News, Nov 17, 1997 by James Frederick

CLEVELAND -- Defying the current ascendancy of megachains and intensifying competition in its own market, Medic Discount Drugs celebrated the simultaneous grand openings of two Cleveland-area stores Nov. 1. Both stores replace older, nearby Medic units with modern facilities in new, high-traffic locations.

One unit debuted in the community of Euclid Beach, east of downtown Cleveland. The other opened in a new strip center, anchored by a supermarket, in Twinsburg, Ohio. That store is less than two miles from the soon-to-be-shuttered headquarters of Revco D.S., which was purchased earlier this year by CVS.

Despite the chill and rainy weather, Medic generated crowds at the grand opening events with an effective pre-opening circular distribution, local-celebrity appearances, giveaways and price specials. New and existing customers were also drawn by Medic in-store services such as fax/photocopy/postal centers, home healthcare departments, diabetes product centers, money orders, lottery ticket sales and contact lens replacement.

The two grand opening events underscore the resolve of Medic's managers to remain a significant force in northern Ohio. Medic now operates 30 stores in greater Cleveland, where it differentiates itself by occupying a high-service, personal-touch niche that has clicked with many consumers.

To build customer loyalty, the chain has launched a series of membership-club cards that offer savings for different segments of the population, including seniors, parents, book lovers and children. Among Medic innovations: a program by which expecting parents can get free use of a beeper for several months before and after the birth of the child.

Medic has also forged strong ties with a number of vendors, allowing it to continue offering value pricing and attention-getting price specials amid tough price competition from its larger competitors.

Jerry Zlotnik, executive vice president and vice president of purchasing for Medic, beleives the chain can hold its own against Walgreens, Rite Aid, Discount Drug Mart and newcomer CVS in its home market. "In today's business environment, even though there's tremendous competition, our real problem is third party," Zlotnik told Drug Store News. "Third party [payers] don't recognize the value of the retail pharmacist. They'll continue to take anything we give them for free.

Small chains, such as Medic, are also frequently frozen out of some managed care plans, Zlotnik said--either because they can't operate profitably on the razor-thin prescription reimbursements being offered by the payer, or because they don't get the chance to bid on the plan in the first place.

Despite those headaches, Zlotnik and chain founder and president Nat Lipsyc continue to champion the value of smaller chain pharmacy. "It's frustrating to see so many chains sell out," said Zlotnik. "Innovation has always come from the smaller players in this industry."

What's more, Zlotnik argues, "The small chain probably does a better job of caring for patients and knowing their needs than the large chains."