WALGREENS DRUGSTORES SPREADING IN SOUTHLAND.Byline: Brent Hopkins Staff Writer CANOGA PARK - Buoyed by strong sales and eager to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. a key demographic, Walgreens is pushing its might in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . The drugstore chain has established itself in the region in recent years with 251 stores, but in coming months it's shifting into high gear. By May of 2002, the 100-year-old chain expects to open 14 stores in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County, including four in the San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. and two in Lancaster. The rapid growth, which could swell the Walgreens portfolio from 3,343 to 6,000 locations by 2010, is based on a calculated strategy, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. spokeswoman Carol Hively. ``We take measured risks,'' she said. ``We're very aggressive in our growth and business tactics, but we do our homework.'' Walgreens first local targets are Canoga Park, with a store on the corner of Topanga Canyon Boulevard and Saticoy Street, and Lancaster, at 831 E. Avenue K, both slated to open the first week of May. A Burbank spot at San Fernando San Fernando, city, Argentina San Fernando (săn fərnăn`dō), city (1991 pop. 144,761), Buenos Aires prov., E Argentina. It is a district administrative center in the Greater Buenos Aires area. Boulevard and Alameda Avenue is planned for September, with a Northridge location at Devonshire Street and Reseda Boulevard to follow in November. A second Lancaster store and a Reseda branch are expected to open in 2002. The Deerfield, Ill.-based chain is soaring high on substantial earnings. In its report for the second quarter of 2001, issued Monday, Walgreens posted sales of $6.42 billion, a sharp increase from $5.6 billion in the same period last year. It also showed an earnings boost, up from income boost, up from $238.9 million to $296.9 million for the period. Southern California has been an essential part of the chain's success, so Walgreens plans to keep expanding locally. ``We're doing very well,'' Hively said. ``By the year 2004, we plan to have 450 there. That's fueled by the demand for prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, . Some of the growth is in the warmer states that are attractive to seniors looking to retire to a pleasant climate.'' Though the retail sector has been notably gloomy in recent months, Walgreens and its competitors enjoy some degree of immunity, said Richard Giss, a partner in the Deloitte and Touche accounting firm. ``The market for drugstores is a unique animal,'' he said. ``On the retail side, we're entering into a tough time. Drugstores are selling needed staples, however, so they're less subject to the fickle fick·le adj. Characterized by erratic changeableness or instability, especially with regard to affections or attachments; capricious. [Middle English fikel, from Old English ficol, whims of retail, unlike fashion and gift retailers that have a high elasticity of demand Elasticity of demand The degree of buyers' responsiveness to price changes. Elasticity is measured as the percent change in quantity divided by the percent change in price. A large value (greater than 1) of elasticity indicates sensitivity of demand to price, e.g. .'' With this freedom from market fluctuation, Walgreens can expand and fill the marketplace. ``They're building up their base to a critical mass. If you just stick your little toe little toe n. The smallest and outermost toe of the human foot. Noun 1. little toe - the fifth smallest outermost toe in,'' Giss said, ``your advertising costs you an arm and a leg.'' Although drugstores, especially large chains, become increasingly ubiquitous, there's still room for more. ``We've got a growing population,'' Giss said. ``In some areas, you still have room for additional drugstores.'' Though America loves the image of a lingering trip to the corner drugstore, with Pop running the soda fountain and Mom selling bottles of aspirin, it may be a thing of the past. Today's shopper is more interested in finding products quickly and moving on, according to Hively. ``We try to anticipate and be responsive to what our customers want,'' she said. ``The trends of shopping have changed, and we try to keep up.'' CAPTION(S): photo, box Photo: (color) A new Walgreens store is rising at Topanga Canyon Boulevard and Saticoy Street in Canoga Park. Phil McCarten/Staff Photographer Box: A CENTURY OF GROWTH Source: Walgreens Co. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion