ALBERTSON'S TO ROLL OUT CLOSER HBC, PHARMACY TIE

JOEL ELSON

BOISE, Idaho -- Albertson's here expects to roll out chainwide its Better Care Centers, a new merchandising concept now being tested at about 20 stores in Phoenix.

According to Jenny Enochson, a spokeswoman for the chain, which operated 826 stores in 20 states at the close of last year, the program consists of new low-profile shelving, signage and other fixtures all designed to better integrate the health and beauty care department with pharmacy.

"We'll have a gradual rollout chainwide if all goes according to plan," Enochson stated.

Enochson did not know how many stores were testing the program at present. Sources close to the chain said about 20 stores in the Phoenix area have been involved in the test for the last six months.

Albertson's pharmacies typically have been positioned along the left or right perimeter wall, with HBC products merchandised in aisles in front.

Under the new format, the HBC gondola fixtures are grouped closer to the pharmacy area to create "more of a drug store within a grocery store" presentation, said Ken Cross, pharmacy director for Albertson's Phoenix division, Tolleson, Ariz.

In the Better Care formats HBC products are merchandised on low-profile 60-inch high gondolas. "The lower gondolas afford HBC customers a clear view of the pharmacy with the idea that it's all one department," said a trade supplier.

The testing being run in Phoenix does not involve a repositioning of the departments. However, in new and remodeled stores, Albertson's plans to relocate the health care department with pharmacy at the front end of the store under a new prototype format. Moving the HBC and pharmacy departments from the middle of a left or right side wall to earlier in the store "creates a better synergy with the pharmacist and is easier for customers to get to," said Cross.

"The pharmacy department deals with patients who are often ill, and having the department at the front is much easier, with less walking. It also can develop better patient relationships through pharmacy consulting services," he added.

In pamphlets that introduced the Better Care Center, Albertson's said its new concept offers "Everything you need to manage your health care." Artwork illustrates a pharmacy shopper in discussion with a pharmacy department staffer. Copy states "At last, one-stop convenience for quality health care, products and services."

"Albertson's has identified this new format as one of its initiatives," said Gary Giblen, managing director of Smith Barney, New York. "And like most major supermarket operators, Albertson's is making a push on pharmacies in order to combat the drug store chains, which are more competitive than ever."

According to Giblen, "a more defined store-within-a-store drug store atmosphere allows supermarkets a way of reasserting their strength in pharmacy."

Giblen said Albertson's current TV ad campaign, which includes references to the excellence of its pharmacists, clearly indicates "how serious the chain is about spotlighting its pharmacy departments."

"Supermarket operators are hell-bent on installing a pharmacy because you sell 25% more HBC with one."

"Moving the pharmacy and HBC sections closer to the front is more convenient. It's also more of that store-within-a-store look that Albertson's is doing in other departments," said Chuck Cerankowsky, a securities analyst at Tucker Anthony, Cleveland.

In its printed description of the new health care center, Albertson's listed pharmacy services offered, including prescription information explained and signed by a pharmacist, acceptance of many health care plans, everyday low pricing on a wide variety of nonprescription medications and health care information.

The chain also plans scheduled health care events ranging from cholesterol and blood pressure screening to product sampling and in-store.