SHAW'S FORMULATES ITS SECOND PHARMACY

Ramona G. Flood

EAST BRIDGEWATER, Mass. - As part of its expansion into pharmacy, Shaw's Supermarkets here has opened its second pharmacy in its new prototype format in Manchester, Conn.

The company plans to add six more pharmacies by February 1996, said Bernard Rogan, a spokesman for Shaw's. In August, the chain opened its first in-store pharmacy in Fair Haven, Mass.

The pharmacies are being managed under a franchise agreement with Arrow Corp., Farmington, Conn., a franchiser of pharmacies, operating 52 pharmacies in Connecticut, Massachusetts and Pennsylvania.

"Shaw's is adding pharmacy as part of our commitment to our consumer. We realize that the demand exists today for both convenience and personalized service. We believe that the new Arrow Prescription Centers at Shaw's fulfill that need," said Rogan.

This is Arrow's first venture with a supermarket chain.

Under the agreement, Arrow will provide overall management services to the chain, including pharmacy planning and development, administrative services, and managed care programs designed to accelerate the growth of pharmacy and related departments within each Shaw's location, according to a press statement from Arrow. The franchiser also will provide the stock, computer software, data bank and administrative support.

Rogan stressed, however, that Arrow Prescription Centers will be fully staffed by Shaw's personnel, and the retailer will hire the pharmacists. The pharmacies will be placed in Shaw's new service-oriented format. These 65,000-square-foot stores include phar-

macy, photo processing, dry cleaning, banking, expanded floral services and a food court. The new prototype, which is a fully expanded one-stop shopping concept, will be rolled out wherever space permits, said Rogan. "We are opening about one new store a month," he added.

Besides carrying the Arrow name, the pharmacies will use the Arrow color scheme of red, white and blue. "This concept provides an opportunity for personal consultations and a pharmacist that is readily available," Rogan said. "Arrow is a very well-recognized name."

The pharmacies have walk-up counters that are adjacent to the health and beauty care aisles.

"Everything will be behind the counter," said Rogan, "but the counters are set up to have private consultation bays."

In each location, the consumer has access to a Health Touch Machine, an informational service that allows the consumer to touch the screen and receive pertinent information on health-related topics. Ed Mercadante, president of Arrow, noted in a statement that the company operates high-volume pharmacy departments that concentrate on maximizing patient care. He also pointed out that the departments tend to support HBC sales.

"All pharmacies will stress cost competitiveness and focus on patient care services," said Mercadante.

Shaw's is examining the feasibility of opening additional pharmacies in existing locations, depending upon space requirements, lease terms and specific market conditions, said Rogan.

"The pharmacies will be more visible in our new stores but we will also be incorporating the format into some of the existing Shaw's when possible," he said.

The Shaw's-Arrow agreement was the culmination of a lengthy search to find the right partner for the supermarket chain, said Rogan. Shaw's signed a licensing and management agreement with Arrow last May.

In June, an in-store pharmacy was set up in Shaw's Brockton, Mass., store as a field test location. Public response was excellent and the chain decided to expand the program, said Rogan.

Shaw's currently operates 91 stores in Rhode Island, Massachusetts, New Hampshire, Maine and Connecticut. The Manchester store is Shaw's first in Connecticut. The chain is currently planning to expand into Vermont.