Pay Less is a winner with new store format

Drug Store News, Nov 19, 1990

Pay Less is a winner with new store format

Pay Less Drug Stores had a challenge: to design a new store prototype that put stronger emphasis on pharmacy and the drug store side of the business, without sacrificing the chain's traditionally broad merchandising focus. Result: a winning design combination that captured the 1990 REX award in store design for its effective repositioning of drug and general merchandise.

"We're trying to break down the walls between pharmacy and the rest of the store," said Dave Widen, vp-pharmacy operations. "The challenge is to emphasize our pharmacies without eroding the appeal of mass merchandise in our stores."

What made that task so challenging for Pay Less store designers was the sheer size and scope of Pay Less' format. The chain operates some of the largest drug stores in the business, with stores roughly grouped into three size ranges--23,000, 27,000 and 31,000 square feet. The merchandise mix goes way beyond that of traditional H&BAs, extending to apparel, kitchen gadgets, records and tapes, sporting goods, domestics and garden supplies. Many stores also have outdoor garden centers.

Pay Less designers tackled the challenge by making pharmacy one of the chief anchors of the new store, with a corner locaion fronted by the personal care and toiletries aisles. Cosmetics occupies a prominent post at the very center of the store, just behind the checkstands.

OTCs, toiletries, cosmetics, greeting cards, school and office supplies, books and magazines and other traditional drug store categories are all given renewed emphasis in the new design. All are positioned within easy access of the pharmacy, creating a natural flow of related products and emphasizing the presciption area as a core department.

Adjacencies have been totally re-examined throughout the store, as well. The camera and electronics counters, for instance, now anchor the right corner of the store adjacent to records and tapes and sporting goods. Housewares, kitchen appliances and domestics are grouped near one another, as are garden supplies, plants, seasonals and outdoor living supplies.

Pay Less will have close to a third of its more than 300 stores sporting the new format by the end of this year. Early results were encouraging: older units posted double-digit sales gains after remodeling.

PHOTO : Pay Less will open more than 40 new stores this year based on its completely resigned format, with eight older units slated for remodeling by the end of the year.

PHOTO : Checkstands are arrayed in double rows, similar to high-volume supermarkets, and feature slot scanners and an adjacnet service counter.

PHOTO : Glamour has been added to cosmetics and fragrance, and the department is now positioned at the front center of the store and anchored by a service island.

PHOTO : The stationery section has been beefed up and given more emphasis as a key general merchandise component. Result: volumes in redesigned sections are running well above company average, according to coo Tim McAlear.