Craig’s Drugstore in Cambridge

Nearly ten years ago Craig’s Drugstore in Cambridge, MD recognized the need for a change.  Wal-mart (CVS, Walgreen’s, Meijer) and others had moved close by and the race to see who could offer the lowest prices was on.  Owners Chuck and Karen Kelly knew that they had an established customer base in the community, but wanted to make some changes to the design of their store to enable them to highlight the products and services that set them apart from the big chain stores.  In order to survive the squeeze of the competition, Chuck and Karen enlisted the help of Ed Lemar, Chief Designer and Senior Vice President of Gladson Design Group, to design the store layout to provide a warm and comfortable shopping environment and increase sales.  The changes that were made almost a decade ago enabled Craig’s Drugstore to be positioned for success now and into the future.

Many successful independent pharmacy owners have lived through the initial introduction of the big chain stores to their trading areas.  The chances for the independent owner to survive are slim if they are trying to compete only on price.  Chuck and Karen, like other successful owners, knew that if they stayed close on price their best opportunity for keeping and gaining additional customers was to market their additional services and merchandise their products more effectively.  According to Karen, “The limited space and cluttered displays that we had in our old store put a cramp on my merchandising style.  In our new store Gladson provided a layout that allows me to really showcase all my different departments.”  In order for the Kellys to keep and continue to grow their customer base, they knew they needed to set themselves apart; it was Gladson’s Design Team that pointed them in the right direction.  Survival in the competitive pharmacy market is based on results; and with margins on prescription medications continuing to decrease, the best opportunities to increase profits are in front-end cash sales and additional services.  “Our customers are the successful owners, and the Kellys are no different,” says Ed Lemar, “they recognized a need to invest in their future and took advantage of an opportunity to set themselves up for success.”

The Kelly's new location moved a few blocks down the street, but remained in the historic downtown area.  With the addition of a few thousand square feet, they were able to incorporate their medical equipment business, which had been run out of a warehouse in a separate location.  One side of the new store would now be dedicated to home health care products and medical equipment.  Gladson’s new design utilizes vignettes in which to display these home health care products. By displaying these products in a way that allows the customer to visualize how they are used, the Kelly’s home health care business has more than tripled.  Although not every successful independent pharmacy has a home health care department, it is one way that independents can set themselves apart from the big chains and gain additional high margin sales.  The Kellys also incorporated additional services into this side of the business.  The new design allowed for a separate service area on that side of the store with a dedicated and knowledgeable sales associate.  They also now employ a registered respiratory therapist and a diabetic care specialist.  These are all services that you can’t find at the big chain stores, and these are some of the elements that have allowed independent pharmacy owners to differentiate themselves from the competition.

The level of customer service that Craig’s drugstore, and other Gladson design projects, provides also separates them from the big chains.  During the merchandising and sales seminar given by a Gladson Director at the conclusion of project installation, the Kelly’s sales and management staff were trained on customer service, inventory control, creating additional sales and merchandising.  Small things like walking the customer up to the product and handing it to them go a long way in keeping customers loyal.

Another way to keep customers coming back and to distinguish your store from the big chains is to create a comfortable shopping environment.  Gladson’s Design Team incorporated antiques and different elements from the old store into the décor and design of the new location.  Arched ceilings from the old store and a restored original “Craig’s Drugstore” sign were apart of the new design.  “Gladson’s designers took advantage of the extra space available to create wider aisles,” says Chuck Kelly, “now our customers stay longer and browse more.”  The new larger card and gift area was set up with displays that allowed the Kellys to showcase special promotional and seasonal items, and the fixtures were placed so that all products have maximum exposure to the customer.  Effectively displaying these higher-end products leads to increased higher margin sales.  With the crunch felt from Medicare/Medicaid reimbursements on prescription medications, it is imperative for today’s independent owners to find other opportunities for better profits.

“For 36 years now the Gladson Design Group has been at the forefront of effective pharmacy design,” says Ed Lemar, “by making the task of filling prescriptions simpler for the pharmacist, it enables him or her to spend more time consulting with their patients.  By improving the workflow behind the counter, the pharmacist has more time to develop a rapport with their customers making them feel like the staff really cares.”  This is in contrast to the assembly line impersonal conditions that often exist at the big chains.  The new pharmacy design allows for two semi-private consultation areas and a private consultation/fitting room.  Separate additional work stations also gave the Kellys the room they needed to continue to offer a delivery service and nursing home prescription filling area.  Again, these are services that set independent pharmacies apart from the chains and are all factors that have helped independent pharmacies establish themselves as a leading growth market.

Without taking the initiative almost ten years ago to invest in the future, it’s unsure how Craig’s Drugstore would have survived.  The Kellys recognized a new kind of competition had come to town and they needed to position themselves in the community as the gold standard for customer service and additional pharmacy services.  With the leadership and experience of Gladson Design Group, they were able to showcase and expand all the areas which would separate them from the big chain stores and achieve higher profitability along with continued success.

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