Running a successful business isn’t easy these days, but one industry in particular seems to be flourishing. Pharmacies are popping up all over California with the most recent additions to Chico being CVS/pharmacy and Walgreens on The Esplanade.
“Our business is growing because America’s population is aging,” said Robert Elfinger, Walgreens spokesman. “The demand for prescription medication is increasing every year.”
People are taking more prescription medication which helps them to live longer, healthier lives, he said. This is fueling Walgreens growth across the country.
Walgreen’s opened its newest Chico store on Jan. 22 at the corner of East Ave and The Esplanade. They also recently remodeled another store on East Ave and Cohasset. While Walgreens has three stores in Chico, throughout California it owns 565.
The pharmacy’s locations are decided based on the demographics of the community. Before choosing a site they look into traffic patterns, both vehicular and pedestrian, and do a lot of research.
“Part of our growth strategy now will be to go into California and the North East,” Elfinger said. “We think we can gain more market there.”
CVS/pharmacy spokesman, Michael DeAngelis also claimed that California is a growing market for CVS. The company has 819 stores all over California.
The pharmacy’s newest Chico store is less than a mile away from Walgreens at The Esplanade and East Lassen Avenue. The 15,000-square-foot building opened on March 21 in the new Lassen View Promenade center.
CVS entered the Chico market through its purchase of Longs Drug Stores in 2008. They converted the two Chico Longs stores into CVS/pharmacies last year, but this is the first one that was built as a CVS, which means a different layout and a convenient drive-thru.
The pharmacy has made it a priority to focus on convenience. Along with drive-thru pharmacy windows, the company builds in easy to reach locations and has long hours, so that customers always have easy access to CVS/pharmacy’s products and services.
One economic bonus for CVS is that 97 percent of its pharmacy business is covered by third party insurance. CVS also attributes their success to the affordability and demand of their essential products. They sell small items, such as toothpaste, aspirin and shampoo that people find necessary for everyday life.
“We’re not recession proof but to some degree we were recession resistant during the latest economic downturn,” he said. “It’s a combination of the fact that we’re providing pharmacy services and prescriptions.”
This year the company will be adding 250 to 300 stores to its already 7,000 stores throughout the country. CVS already has plans to open another store in Chico next year on the corner of Forest Ave. and Route 32.
“Chico is one of the major markets we entered into as part of the Longs acquisition,” DeAngelis said. “Now that we’ve completed the conversion of the Long’s stores we’re excited to be opening new locations.”