Hi-School Pharmacy

Drug Store News, April 28, 1997 by Allene Symons

VANCOUVER, Wash. -- Hi-School Pharmacy's business is growing with the swelling population of its Pacific Northwest market.

"The whole Northwest is a boom area," said president Steve Oliva. For example, Hi-School's headquarters town, Vancouver, Wash., is actually part of greater Portland, Ore., which boasts a 5 percent to 6 percent annual increase in population. And that's where you'll find 13 of Hi-School's 40 drug stores.

Hi-School Pharmacy operates both large format and apothecary drug stores in Washington and Oregon, and also has one store in Crescent City, Calif.

One of the ways Hi-School is growing sales is by expanding its space for general merchandise.

In 1996, Hi-School closed two stores, opened a new store in a medical center and remodeled one store by expanding it from 6,000 square feet to 23,000 square feet.

Hi-School is also nearing completion of its custom designed POS scanning program and inventory replenishment system.

The chain's 19 large-format stores are unusual because they have 4,000-square-foot Ace and True Value hardware departments, which attract more male shoppers than the average drug store, and spur sales in electronics and small appliances. Some Hi-School Pharmacies also carry about 6,000 square feet of Ben Franklin variety and crafts merchandise. (The chain formerly operated two Ben Franklin stores, but has incorporated much of that merchandise in its drug stores.) Other features of the large stores include automatic teller machines in two stores and one-hour photo labs in three locations.

This year, Hi-School plans to close one store and open two new stores, including the recently completed conversion of a 37,500-square-foot former Safeway into a 25,000-square-foot Hi-School Pharmacy with double drive-up windows.

Hi-School operates its apothecary stores under many names, including Bolger's Pharmacy, Ervin's Drug West and Medco. In addition to its retail outlets, the company operates other affiliated healthcare businesses, including an infusion company in Seattle. Its managed care division manages about 5,000 lives in a capitated program.

RELATED ARTICLE: HI-SCHOOL PHARMACY AT A GLANCE

Co. headquarters: Vancouver, Wash.

1996 sales: $76 million

% chg. vs. 1995: +5%

No. of units: 40

Average store size: 20,000 square feet

Pharmacy sales: $42 million

% of sales from pharmacy: 56%