The Death Of The Drug Store

Walgreen's just announced they are closing 1200 stores. Rite Aid is in bankruptcy for the umpteenth time and closing more than 800 stores while CVS is closing 300 stores on top of 100's of stores already closed. 

Growing up in the 60's as a kid and 70's as a teenager, there was nothing more fun than shopping at the local drug store. Back then, many had soda fountains and served lunch at a counter. But they all had the best candy selection including every kind of penny candy you could think of from Mary Janes, Black Jack, Watermelon Jolly Ranchers, Lemonheads, Laffy Taffy, Dubble Bubble, candy buttons, Pixy Sticks, and even wax bottles. 

They also had the coolest selection of seasonal goods, ice cold sodas and it was fun shopping. It was also the place to get rubbers, Brylcreem, Vitalis and Brut 33. And of course, picking up prescriptions for mom. 

Along the way, independent drug store owners sold out to regional chains and then regional chains sold out to national chains and we ended up with three commoditized chains that offered nothing unique or fun. 

Fast forward to today and you can get prescriptions almost anywhere including Walmart, Amazon, Target (CVS) and thousands of local pharmacies inside medical buildings. Hence, the need for national chains to close stores as they are no longer relevant. Who would have thought?

The same thing happened to office supply stores. Staples and Office Depot are as much fun to shop as a Dollar Tree. 

Penny candy gave retailers a fun category to sell although it most likely wasn't the most profitable and there was a lot of theft (what kid didn't steal candy (I store a pack of gum and was badly reprimanded)). But retailers have forgotton that they have to offer shoppers fun experiences to be relevant and get shoppers into their stores. That is one reason why Costco consistently outperforms Sam's Club and other warehouse clubs: Their stores are fun to shop. 

Now I'm craving Sour Patch Kids and yes, I can buy them on Amazon. But there was something special about the impulse nature back then when your senses made buying decisions because sensory overload always happened at the candy counter. Charm Pop anyone?