Duane Reade finds a cure in private label

摘要

In less than two years, Duane Reade's private-label brands have doubled In sales. Some of the New York City-based drugstore chain's private brands have emerged as bestsellers. Beyond that, improved private-label sales have brought higher average gross margin rates and raised overall store gross margin. Duane Reade has achieved these eye-catching results by repositioning and redesigning more than 2,000 private-label SKUs, as well as giving its 250-plus stores a facelift. In the process, the retailer, synonymous to New Yorkers with "pharmacy," has evolved into a store with a pharmacy, and Duane Reade appears to be re-emerging as a meaningful shopping destination for consumers in New York City and surrounding boroughs. With its extensive makeover, Duane Reade paints a picture representative of retailers who are getting more adept at leveraging packaging's power as a brand communicator and sales influencer, especially when it complements other marketing efforts. The company has completed the arduous process of creating new brand experiences, discontinuing products that didn't meet consumer needs, and upgrading food product quality under its four primary private brands. The new look emphasizes the tagline "New York Living Made Easy." Duane Reade's private brands bear such package images as gritty photography capturing the character of the city and clever UPC code-like depictions of New York landmarks, from the Empire State Building to the Brooklyn Bridge. The strategy behind Duane Reade's fresh appearance was carried out by a new management team that reports to new owner Walgreen Co.