Duane Reade’s Front-End Slips

Oct 07, 2003

By George Anderson

The dominant drugstore chain in the New York metro market, Duane Reade, has been successful by building a front-end business that accounts for approximately 75 percent of the
company’s sales.

Last quarter, however, Duane Reade said profits would fall below the expectations of analysts due to a drop in front-end performance, the grid blackout, and lower pharmacy margins
due to an increase in generic sales.

Anthony Cuti, chairman and chief executive officer, Duane Reade said, the company was also affected by the growing numbers of patients without insurance and “persistent unemployment
in the metro New York area.”

Moderator’s Comment: How can drugstores develop more successful front-end businesses?

Duane Reade’s philosophy is pretty simple. The company tries to jam everything into their stores that busy New Yorkers, or those who simply work there,
may need.
Anderson – Moderator

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