July 10, 2000

Edition: 20:00,21:00

Estimated printed pages: 3

Article Text:

LINDA WERTHEIMER, host:

This is NPR's ALL THINGS CONSIDERED. I'm Linda Wertheimer.

When huge drugstores, like Rite Aid, expanded across the country, many local pharmacies saw their business hurt and, in the last decade, thousands of independent pharmacies were forced to close their doors, but some hung on. And as Maine Public Radio's Naomi Schalit reports, most of the remaining stores have found ways to compete with the dominant chains.

NAOMI SCHALIT reporting:

Half a century ago, silver-haired Joanne Jacobs was still dark-haired Joanne Waltz, that's when her father opened this drugstore in the heart of tiny Damariscotta, Maine.

Ms. JOANNE JACOBS: Since August of 1948--it was the opening day and I had my first job behind the soda fountain.

(SOUNDBITE OF DRINK BEING POURED)

SCHALIT: They're still pouring coffee at the soda fountain's counter, but the pharmacy's changed a lot since the old days, that's when there were two other small drugstores in town. They were friendly competitors, says Jacobs' husband Winton, who's a pharmacist.

Mr. WINTON JACOBS (Pharmacist): We always had good relations. In fact, we'd alternate Sunday's being open and then we'd also--if he ran out of something and wanted to borrow something, we'd loan. If we ran out and had to have it right away, if he had it, we'd borrow it from him and we'd pay--whenever our next shipment.

SCHALIT: Then came the '90s. The friendly days were over. A Maine-owned drugstore chain moved in next door and almost drove them out of business. The same thing was happening in communities across the United States; 11,000 independent drugstores closed their doors between 1990 and 1998.

Mr. JACOBS: No matter what you'd do, they were always opposing it or trying to undercut you pricewise or something and it took quite a while to get--so you could get the people you used to, you might get a price break, but will they deliver it, will they give you the service, and these sort of things that our little store always had.

SCHALIT: But then, says Joanne Jacobs, they got lucky. The local chain drug store next-door was bought by the national Rite Aid chain.

Ms. JACOBS: When Rite Aid came, it was a benefit because so many people do not like to do business with them that we gained customers.

SCHALIT: With the help of their son, third-generation pharmacist Dean Jacobs, the family pushed to expand their business and they did it by offering services nobody else did. The person who needs the pills being counted on this afternoon can get them delivered for free. After hours, an answering service will track down one of the pharmacists. The Jacobs family now owns seven drugstores. They supply prescriptions to local long-term-care facilities. They've got agreements with local hospitals to supply medicines to them if they run out.

Val Cardinale is editor of the pharmacists journal Drug Topics. He calls independent drugstores like this the comeback kids.

Mr. VAL CARDINALE (Editor, Drug Topics): The drain is still there. I mean, there's still some falling off, but it's not as precipitous as it was in the past. So the ones that have survived are tougher, they're more savvy, they've learned how to compete effectively, they have established niches for themselves.

SCHALIT: Some independents offer screening programs. Others, in-home medical equipment. Last year, a Consumer Reports survey rated independent drugstores highest in customer service. Tammy Plummer is a regular patron at Waltz Drugs.

Ms. TAMMY PLUMMER (Patron): They're more in touch. I actually was in to Rite Aid and couldn't even see the pharmacist one day when I just wanted to ask a question 'cause I happened to be in that area. And it's just nice that they're out in the open and if you have a question you feel comfortable asking them about it.

SCHALIT: But if customer service is their strength, it's also a potential weakness, because their larger competitors can offer the same thing, too. Jody Cook is a Rite Aid spokeswoman.

Ms. JODY COOK (Spokeswoman, Rite Aid): Rite Aid does have delivery in a lot of its location where either the customers have come to us and asked if we could add delivery services to our stores or if maybe there was an independent store that Rite Aid has now acquired and they did offer the service and we've continued that service for those customers.

SCHALIT: In Damariscotta, though, the Rite Aid up the road from Waltz Pharmacy doesn't deliver and Dean Jacobs believes his pharmacies will be around for a long time to come. When Rite Aid offered to buy up Waltz Pharmacy awhile back, Jacobs sent them packing. `Come back,' he said, `when you're ready to sell out to me.' For National Public Radio, this is Naomi Schalit, in Damariscotta, Maine.

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Record Number: 200007102006