The next time you see construction workers breaking ground to make way for a freestanding pharmacy or remodeling an existing
one, the Grand Opening banner could read: ShopKo Express Rx.
ShopKo Stores Inc., headquartered in Green Bay, Wis., is a mass-merchandiser with 361 stores. Two hundred and fifty of these
stores —including almost all of the ShopKo stores—encompass pharmacies. The company has decided to open freestanding pharmacies
with a "neighborhood drugstore format."
Mike Bettiga, senior VP, retail health services, told Drug Topics, "We're a mass-merchant with pharmacies and optical centers in almost all of our ShopKo Stores. We also have another division
called Pamida. Pamida has smaller stores, a number of which have pharmacies, in a rural setting across the Midwest. We pride
ourselves on the success and importance of pharmacies to our company.
"Retail health is a key differentiator for ShopKo. Getting into the freestanding pharmacy business is something we talked
about and explored for a number of years. We recently made the decision to go out and test a couple of different concepts
with freestanding drugstores." The tests have yielded three freestanding stores under the ShopKo Express Rx banner. One store, situated in Port Washington,
Wis., is a pharmacy that ShopKo acquired and remodeled. Two of the brand new stores are located in what Bettiga described
as "new growth areas" outside of Green Bay. One of these stores is a 15,000-sq. ft. building in Howard, Wis. In addition to
a pharmacy, the store features an optical center. "We put an optical center into a drug environment. There is a big emphasis
on food and beverage as well, and a business center. The business center features a postal substation and offers lottery sales,
hunting and fishing licenses, key making, and one-hour photo. It's a different concept from some of the other stores," said
Bettiga. The second new ShopKo Express Rx store, in Ledgeview, Wis., has 14,200 square feet. It does not have an optical center.
"This is a test for us and a work in progress," explained Bettiga. "We intend to do a lot of work with customers, finding
out what they like and what they'd like to see different. We are going to test the results of optical because it is a different
business for the drugstore environment. There is an advantage in that we have the entire infrastructure set up to support
all of the optical that we have in our whole chain. This is a natural extension for us," he said.
Emphasizing that ShopKo Express has a lot of young families to cater to in these new stores, Bettiga said, "Our whole mission
is to provide a very convenient outlet for retail health services. We are going into high-growth areas outside the core city,
and we are trying to provide a little more convenience. "
Bettiga said ShopKo Express Rx offers a merchandise mix with a greater emphasis on food than some of its competition. In addition
to the business center, the pharmacy carries some electronics, traditional health and beauty aids, greeting cards, seasonal
products, and one-hour photo. All of the new stores have a drive-thru. The company has decided not to carry toys and gifts.
"We are going to focus on the types of items you would need for a fill-in trip and make the store accessible and convenient
for customers in those areas," explained Bettiga.
As to the design of the stores, Bettiga said the pharmacies are very open. There are separate counseling panels in the front
of the store and very large, roomy waiting areas in the fore of the pharmacy. The Howard store features a Healthnotes information
kiosk as part of its wellness center. The stores have a center entrance, Bettiga pointed out. "We only merchandise up to 66
inches to allow customers to see the various departments throughout the store. This allows them to orient for a moment and
choose their shopping pattern."
Will ShopKo expand with more Express Rx outlets? While Bettiga emphasized that it's too early to discuss expansion, he said
that the chain operates in 16 states from the Pacific Northwest into Wisconsin and upper Michigan.