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The Honolulu Advertiser
Posted on: Saturday, June 30, 2007

Walgreens tapping into local Hawaii products

By Andrew Gomes
Advertiser Staff Writer

Walgreens this week took another step toward establishing itself in Hawai'i by hosting a meeting for prospective product suppliers, and the company said the turnout was overwhelming.

An estimated 350 to 400 people attended a Wednesday meeting in Waikiki intended to attract potential suppliers of local goods for what the nation's largest drugstore chain hopes will be as many as 40 stores in the state.

The first store is scheduled to open in November at the former Tower Records site on Ke'eaumoku Street, followed by three more early next year.

Bill Hose, Walgreens vice president of store operations, said the turnout was beyond the company's expectations.

"We're really delighted," he said. "It was a really positive response."

The meeting predominantly drew suppliers of goods from Hawai'i, including food and books, but also drew distributors of national products from batteries to beverages.

After Wednesday's event, the retailer began holding one-on-one meetings between Walgreens purchasing officials and vendors, though Hose said so many vendors signed up that another round of meetings will have to be scheduled for August.

"There were just more vendors than people to meet with them," he said.

Though Walgreens has done its share of local market research, vendors will help the Deerfield, Ill.-based company shape its merchandising plan.

"Our purpose was to ask for their help," Hose said of the vendors. "We're new to this market, and we recognize that this is a very unique market."

Hose said the Hawai'i Walgreens stores will probably have 25 percent more local products than its typical stores in other U.S. cities.

Any vendors still interested in supplying Walgreens in Hawai'i can contact the company at Hawaii.vs@walgreens.com.

Walgreens said it identified Hawai'i as ripe for entry because it is the last of the biggest 100 U.S. markets with only one major drugstore chain, Longs Drug Stores, which Walgreens figures has a 73 percent share of the business.

Walgreens has disclosed locations for three stores. Two stores — one at the former Star Market site in Kane'ohe and one at the former Kam Bowl in Kalihi — will be typical Walgreens stores that are about 14,500 square feet and have drive-through pharmacy windows.

The Ke'eaumoku store will be 13,000 square feet and will not have drive-through pharmacy service or much parking.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.