Genovese strikes first blow in Manhattan - Genovese Drug Stores enters the New York market

NEW YORK -- In a long-awaited move, Genovese Drug Stores has finally weighted into the Manhattan market with a glitzy, 7,500-square-foot store on the city's Upper East Side. The chain's entry was a splashy one, with top company brass mingling with hundreds of customers who packed the store throughout opening day Nov. 2.

Genovese will operate both front-end and pharmacy here 24 hours a day, making it one of only two round-the-clock pharmacies in Manhattan. (The other is independent Kaufman Pharmacy in Midtown.)

Although the store's size is a step down from Genovese's 12,000-square-foot prototype, it is packed with merchandise, and certain categories, such a hair accessories, are given greater space in Manhattan.

According to Genovese executive vice president Allan Patrick, the store's mix will be constantly fine-tuned to fit customer preferences through its POS scanning system. "With POS, we can tell tomorrow morning what sold," he noted. "That allows us to very quickly adjust prices, modify planograms or reorder merchandise."

Focus groups held in the store's planning stages have provided key insights into the chain's newest market. "New items are very important to this consumer," said Patrick. "They also wanted more selection in certain categories, such as reasonably priced panty hose."

Although no leases are singed, Patrick said the chain is looking for more Manhattan locations.

In addition to its full-size stores, the chain has developed a streamlined portotype, called Genovese Express, a 6,000-square-foot format located in high-density urban areas in New York City's outer boroughs. Unlike the Express stores, however, the Manhattan location includes every category available in the traditional, suburban store. "We took a Long Island store and placed it in Manhattan," said Patrick.

Nevertheless, some aspects of the store are unique to Manhattan. Among the modifications:

* The use of slatted wall fixturing to cover existing pillars. The slatting enables the store to use every inch of retail space and increases endcap merchandising.

* Rotating window display fixtures to attract consumer attention. "We really needed motion to catch the customer's eye in Manhattan," said Fred Kates of Kates Unlimited, the creator of the fixtures.

* An expanded pharmacy consulting and waiting area that includes seating, health information and videos that customers can take home.

* An emphasis on prescription home delivery, as part of a full-service approach.

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