I can understand why go! wants to enter the market, but why Walgreens? Walgreens plans to open their first store in the Islands in place of the Ke'eaumoku Tower Records.

How in the world does Walgreens thinks it can compete opening so close to a WalMart (across the street), a Sam's Club (above it), and a Longs Drugs (at Ala Moana Shopping Center).

I would imagine the parking situation to be nill as well.... :confused:

http://the.honoluluadvertiser.com/article/2006/Nov/30/br/br0294368175.html

When we lived in the Bay Area, and prior to that in IND, Walgreens came in and blitz-built. They really hurt Longs in the former and a couple of local chains in the latter.

When we lived in the Bay Area, and prior to that in IND, Walgreens came in and blitz-built. They really hurt Longs in the former and a couple of local chains in the latter.
I wonder if Walgreens have the name recognition in Hawaii, though, to hurt Longs.

It's not like Longs is pricing itself above cost. If anything, the Longs ad is what keeps prices down.

Add to that the fact that everyone in Hawaii knows what a Longs is and has come to trust the Longs name. Not to mention the presence Longs has in the Hawaii market. Do we really not have an oversaturated drug store market?

And, add further to that the presence of Walmart.

Except for our hanai-kama'aina, no one is really going to know what a Walgreens is. So I'm still questioning their move. Why is it that they see such an incredible opportunity for them to grow in the Islands, to the point where they've been clammering for a year & 1/2 now to open a store here... :confused:

I agree from my short time here that Longs is known, trusted, and sets the bar often for low prices. And the store personnel here are great.

But I worry about this -- Walgreens had zero name recognition in IND. Two years later, they had driven some local chains to merger/out of business.

I agree from my short time here that Longs is known, trusted, and sets the bar often for low prices. And the store personnel here are great.

But I worry about this -- Walgreens had zero name recognition in IND. Two years later, they had driven some local chains to merger/out of business.
Ah, see, we don't have any local chains here in Honolulu to begin with. ;)

Part of being in Hawaii is shopping at stores like Longs and ABC. I find Walgreens prices to be equal to or greater than Longs, so there is no real price or product advantage.

Most Longs stores are much larger than the average Walgreens

Here is what should worry Hawaiians about Walgreens - their corporate strategy is to place multiple locations in close proximity to each other - like pepperoni on a pizza. They get their customers by being the store of convenience - always around the corner, and always easy to find a late-night or 24hour location.

I am not sure they can damage Longs - but they could turn into a blight on the Hawaiian landscape by building cookie-cutter stores everywhere. In my part of Boca Raton, I have 3 identical Walgreens stores all within 1-2 miles of each other on the same roadway.

Longs, Walgreens, ABC stores:

All 3 can be found in Las Vegas; now here too.

Waikiki may crumble under the combined weight of ABC/Walgreens!

Part of being in Hawaii is shopping at stores like Longs and ABC. I find Walgreens prices to be equal to or greater than Longs, so there is no real price or product advantage.

Most Longs stores are much larger than the average Walgreens

Here is what should worry Hawaiians about Walgreens - their corporate strategy is to place multiple locations in close proximity to each other - like pepperoni on a pizza. They get their customers by being the store of convenience - always around the corner, and always easy to find a late-night or 24hour location.
Being very familiar with the Walgreens strategy, I don't think that'll work here in the Islands, especially on Oahu. Waikiki is already dominated by ABC stores which pay a very steep price to have an ABC store within every two blocks. The rest of greater Honolulu doesn't have the infrastructure to support a Walgreens popping up on every street corner (all the ex-gas station lands have since been converted... :) ). And, outside of greater Honolulu, Walgreens won't have that name recognition unless they can offer a cheaper product than Longs. There are a great number of pukas out there that Walgreens can take advantage of, however, such as the Pearl Highlands center where the nearest Longs is at Pearlridge.

Still, the people of Hawaii look for bargains. So my bottom-line is, if Walgreens can't bring cheaper prices than Longs, I don't see them carving out a niche.

If Walgreen's wanted to bother with Kauai, I don't think they would find the pickins all that good.

The 2 Longs stores do okay,probably not great, with the competition from Walmart and now Costco. Their prescription business, which once thrived, now doesn't.

My MIL is a pharm.tech. at one in the midwest. They're basically coast-to-coast now, and they're not the only big chain... CVS has been spreading from the east, RiteAid or some name like that is big.

Walgreen's doesn't need to compete with Long's, really. They can probably survive off the traffic from tourists from back east who see "Long's" and say "huh?" but see "Walgreen's" and say "Ah, a familiar name."

Oh, they'll be on Maui soon. But not all over Maui County! Garuns.

Coming never: Walgreen's on Moloka'i or Lana'i.

Walgreen's doesn't need to compete with Long's, really. They can probably survive off the traffic from tourists from back east who see "Long's" and say "huh?" but see "Walgreen's" and say "Ah, a familiar name."
You mean to tell me that the some 130k visitors to the State from the East of the Rockies per month will be the base of support for Walgreens?

I don't see that happening because (1) there's no space in Waikiki for a Walgreens store to pop up, let alone the fierce competition from the ABC stores and (2) anything outside of Waikiki will force visitors to drive there... which means they'd actually have to hunt out a Walgreens when they can visit the nearby ABC store/Longs.

I think Walgreens entered the competition a little too late on this one.

here are a great number of pukas out there that Walgreens can take advantage of, however, such as the Pearl Highlands center where the nearest Longs is at Pearlridge.

Still, the people of Hawaii look for bargains. So my bottom-line is, if Walgreens can't bring cheaper prices than Longs, I don't see them carving out a niche.

There's a longs .5 mile from pearl highlands, near daiei (now don quixote(sp))

With the right PR, walgreens could have a great start. People here flock to new stores/chains. If their prices are competitive, I think they can be successful. Run Longs out, no. But cut into their profits, yes.

I think chain loyalty is fading as most folks here and the rest of the us(and world?) want the most for their money regardless of whether it costs their countrymen manufacturing and retail jobs. The walmartization of the world.

eh, sorry for the tangent. At least I didn't start in on how go! airlines is a similar deal(with some stark differences).

i can see how they'd do well, both with visitors who recognize the name from 'home' and from people living in hawaii who appreciate competition. sometimes it's nice to have more than one place to buy _____.

plus, if they're new stores, some folks will check 'em out just to see something new. i remember driving from kona to waimea just to see the new food town a couple years ago...it was so much nicer than the icky sack-and-save near me that i actually made that pilgrimage a few times just to go shopping. most folks in hawaii probably wouldn't do that, but...if there were a walgreen's in kona, (i understand we're talking o'ahu, but someday...) it likely would get my business over longs. the one on the kona side always smelled funny...did anyone else ever notice that?

You mean to tell me that the some 130k visitors to the State from the East of the Rockies per month will be the base of support for Walgreens?
Maybe not, but as one of Walgreens commercials advertises, "... if you have forgotten your prescription, every Walgreens is your local pharmacy - whether it is across town or across the country ..." So if the tourist needs his/her prescription refilled during his/her trip, are they going to Walgreens (where their prescription is) or Longs?

And as karenkay said, many locals will go to the "new store" to try it. Some will even stay! (Walgreens hopes so.)

And as karenkay said, many locals will go to the "new store" to try it. Some will even stay! (Walgreens hopes so.)
But again, many locals will stay only if the pricing is cheaper than Longs. Locals go and "check" new things out (ala residents of a small town checking out the stoplight ;) ), but they only stay if the store is cheaper... And, you're talking cheap if you're beating Longs in price and selection.

Sure, Walgreens will provide their nationwide prescription service here, which will attract tourists to Walgreens, but Walgreens can't build success on just tourists and displaced Mainlanders alone. They need to attract the locals... Can they really out-price and out-compete Longs? I don't know if they can quite do that.

Plus they don't have the selection capacity of Longs. I've been to Walgreens stores across the nation (Boston, NY, Orlando, etc. + around the West Coast--too many to count) and know that they are roughly 1/2-1/3 the size of a regular Longs store. And, most Longs are strategically placed in the Islands to be near a Safeway or in malls.

And, with WalMart 30 feet away and Longs 1/4 mile away in Ala Moana Shopping Center, with little or no parking, Walgreens seems to have take a misstep with their first store, IMHO. The Tower Records lot is not big at all, with maybe 8 parking stalls max.

Hawaii has a state regulation limiting only a 30 day max supply of meds for prescription drugs written by MD's not having a HI medical license. I wonder how this will effect the Walgreens rx policy.

MisterNice

Sure, Walgreens will provide their nationwide prescription service here, which will attract tourists to Walgreens, but Walgreens can't build success on just tourists and displaced Mainlanders alone.

I wonder if Walgreens will sell those evil "Revealed" guide books? :p

I wonder if Walgreens will sell those evil "Revealed" guide books? :p
FWIW, both Costco and Longs sell them. ;)

Honestly, I have no idea whether Walgreens can have commercial success in Hawai'i.

However, I do defend their right to TRY.

I agree Longs is a part of the local fabric and would make for formidable competition. Still I think Hawai'i suffers when competition is limited.

That's why I've advocated Go! joining the competitive landscape, Home Depot & Costco entering the Kaua'i market and the superferry. Absent competition innovation just doesn't happen and prices just continue to increase.

So, welcome Walgreens. Proceed with due caution. Make some allowances for local preferences and customs - if you do so, you might succeed beyond all expectation.

Lihue1k

I would say that Walgreens is smaller because they just sell mostly drugs. They're not an all convenience store like Longs, that's why I love Longs. Whenever I step in a Walgreens on the mainland it's boring but that's what they are - a drug store that just sells drugs and I always compare them to Longs and complain (where's the soda?). At Longs it's like I can almost live there. Food, cosmetics, hygiene stuff, liquor, photo center and more. Eckerd's on the east coast sorta reminds me of Longs but I'm digressing.

. . . Walgreens, but Walgreens can't build success on just tourists and displaced Mainlanders alone. . .

Displaced Mainlanders? Not much aloha in that choice of words, slippahs.

Displaced Mainlanders? Not much aloha in that choice of words, slippahs.
AZ, that is the term used here in the Islands by many Mainlanders I know who have moved here. Just as the term displaced kama'aina is used for locals now living on the Mainland.

And, much like the term haole is used to mean foreigner.

And thus the comeptition heats up...
http://starbulletin.com/2006/12/20/business/story01.html
Longs officially opened Monday at 2070 N. King St., its first location in the islands that only has a pharmacy. Walnut Creek, Calif.-based Longs Drug Stores Corp. bought and expanded Gulick Pharmacy in a deal that closed Saturday.

"This is the first pharmacy store in Hawaii that we've done although we do have some on the mainland," Longs spokeswoman Farra Levin said. "Our customers are looking for more convenience, and we've tried to answer that by creating more locations."

Longs may open one to four more locations in Hawaii within the next year or so, she said.

Walgreens is also scouting for a location in Kona, according to a commerical
real estate broker friend.

Well I'll eat my earier words and say that perhaps they will show up on Kaua'i.

Rumor has it that Star Market will be leaving Kauai (Kukui Grove). Too close to Costco, a poorly run market that appears to have lost critical market share and be losing money. That will be a huge space that perhaps could work for Walgreen's.

I would say that Walgreens is smaller because they just sell mostly drugs. They're not an all convenience store like Longs, that's why I love Longs. Whenever I step in a Walgreens on the mainland it's boring but that's what they are - a drug store that just sells drugs and I always compare them to Longs and complain (where's the soda?). At Longs it's like I can almost live there. Food, cosmetics, hygiene stuff, liquor, photo center and more. Eckerd's on the east coast sorta reminds me of Longs but I'm digressing.

Really? Where have you been to Walgreen's? The Walgreen's I am familiar with sell everything but fresh meat and produce. If they start selling the local stuff (and they will, they do it everywhere else), it won't be any different than Long's - well, maybe a little brighter and cleaner. As a regular visitor to Hawaii, I would welcome being able to get my prescriptions refilled with ease. Hey folks, if you can absorb Costco, I think you can handle Walgreen's.

I wonder if Walgreens have the name recognition in Hawaii, though, to hurt Longs.


Maybe they are not after the Hawaii locals, but the visitors who know and love Walgreens

Maybe they are not after the Hawaii locals, but the visitors who know and love Walgreens
I don't know about that, especially since Walgreens commercials are out in full force on the local radio stations here on Oahu. So, it looks like they're catering to locals as well; however, of course, the focus would logically be with Mainlanders. But, like I said, mainlanders alone won't be able to support Walgreens. Locals have to turn too, and I don't know how possible that'll be.

Well I'll eat my earier words and say that perhaps they will show up on Kaua'i.

Rumor has it that Star Market will be leaving Kauai (Kukui Grove). Too close to Costco, a poorly run market that appears to have lost critical market share and be losing money. That will be a huge space that perhaps could work for Walgreen's.

Please, please, please, Safeway instead . . .

Lihue1k

Please, please, please, Safeway instead . . .

Lihue1k

^ And grocery miles! :)

^ And grocery miles! :)
Is that why I've been receiving 125 miles for every $250 I spend?

Please, please, please, Safeway instead . . .

Lihue1k


Seriously we stopped shopping at Safeway a couple of years ago (and many folks we know feel the same way). Horrible market, and yes, way worse than Star. Shelves are always 1/2 empty, bad layout that makes long lines even worse. Ridiculously overpriced. I wouldn't be surprised to see them go too, leaving Foodland and Big Save to compete with Costco and perhaps Walmart's Supercenter (if they get it approved). Foodland had been wanting to open in the Koloa area, but I'm not sure if they are just waiting now or what.

Seriously we stopped shopping at Safeway a couple of years ago (and many folks we know feel the same way). Horrible market, and yes, way worse than Star. Shelves are always 1/2 empty, bad layout that makes long lines even worse. Ridiculously overpriced. I wouldn't be surprised to see them go too, leaving Foodland and Big Save to compete with Costco and perhaps Walmart's Supercenter (if they get it approved). Foodland had been wanting to open in the Koloa area, but I'm not sure if they are just waiting now or what.

Interesting. I suppose it depends on what one is looking for, but I find the Safeway to be much better stocked (and a much larger variety of products, in part, I'm sure because the store is so much bigger) than the Big Save in Koloa. The problem is the drive is too long from Poipu and, as you suggest, it's overpriced. There are a couple of things that I like that I always purchase in CA and HI because they are not available in IL. While both Big Save and Safeway carry them, the stock at Big Save is almost always depleted and they're always available at Safeway.

Well, here we have it. Walgreens plans to fiercely compete with Longs... [emphasis added]


Drugstore giant Walgreen Co., in the midst of an aggressive nationwide expansion, plans to go head-to-head with Longs Drug Stores Corp. in Hawai'i, eventually opening as many as 40 stores in the state and locating them next to Longs whenever possible.

"We think there's a lot of room here," said Robert Roscoe, Walgreens director of asset development, at an International Council of Shopping Centers conference yesterday in Waikiki.

Hawai'i is the last of the biggest 100 U.S. markets with only one major drugstore chain, according to Roscoe, who said Longs has a 73 percent share of the business in the Islands.

"That's unheard of," he said. "That's why we're coming here."

Walgreens has said it plans to open its initial four stores on O'ahu by early next year.
http://the.honoluluadvertiser.com/article/2007/Jun/22/ln/FP706220379.html

Well, here we have it. Walgreens plans to fiercely compete with Longs... [emphasis added]

http://the.honoluluadvertiser.com/article/2007/Jun/22/ln/FP706220379.html

I wonder how well Walgreens researched the 'intrinsic' aspects of the Hawaiian market. Sure, anyone can identify a market they think is wide open and move in to claim a slice of the pie, but there are certain aspects of the Hawaiian market that are different than say, New York City.

How well is Longs ingratiated into local culture...would a feeling of "Ohana" between Hawaiian residents and Longs defeat any attempt by Walgreens to launch a full-out assault on Long's turf? How deep would Walgreens need to drop its prices to get around the connection Longs has to the community, if such a relationship exits?

I can speak for myself - when in Hawai'i or even out in California, I shop at Longs exclusively, totally ignoring the chains (Walgreens and CVS) that are located in my neighborhood back home. Why? Longs just has better service and selection and its prices are no worse (and often better) than Walgreens or CVS.

I wish Walgreens lots of luck with this endeavor...they're going to need it. There might be a reason no one has seen 7-11 launch an assault on ABC's turf...

I wonder how well Walgreens researched the 'instransic' aspects of the Hawaiian market. Sure, anyone can identify a market they think is wide open and move in to claim a slice of the pie, but there are certain aspects of the Hawaiian market that are different than say, New York City.

How well is Longs ingratiated into local culture...would a feeling of "Ohana" between Hawaiian residents and Longs defeat any attempt by Walgreens to launch a full-out assault on Long's turf? How deep would Walgreens need to drop its prices to get around the connection Longs has to the community, if such a relationship exits?

I can speak for myself - when in Hawai'i or even out in California, I shop at Longs exclusively, totally ignoring the chains (Walgreens and CVS) that are located in my neighborhood back home. Why? Longs just has better service and selection and its prices are no worse (and often better) than Walgreens or CVS.

I wish Walgreens lots of luck with this endeavor...they're going to need it. There might be a reason no one has seen 7-11 launch an assault on ABC's turf...

Long's is a CA chain, right? Why would anyone care since it's not locally owned, unless, as you say, there is some connection to the community. My experience with Long's is limited, mostly to Hawaii, but I tend to gravitate to clean and bright with good prices, which is how I think of Walgreen's. But then Walgreen's is the home town store where I'm from, so perhaps I think of them more positively.

But then Walgreen's is the home town store where I'm from, so perhaps I think of them more positively.

Exactly. Longs might not have its HQ in Hawai`i, but your gravitation to Walgreens is exactly why the people of Hawai`i have a strong connection with Longs... it's the hometown store. Not to mention, Longs has made itself part of Hawai`i.

Case in point: Lee Cataluna's (playwright and longtime columnist for the Honolulu Advertiser) The Folks You Meet in Longs (http://www.iolanistore.org/tfoyoumeinlo.html)

I frequented Walgreens in California for 8 years. I can't imagine anyone writing The Folks You Meet in Walgreens.

Even from my still-malihini experience, it is very clear that Longs is a part of Hawaii and they "get" Hawaii.

We'll see if Walgreens can do the same....

You know, come to think of it, sadly I've been shopping less and less at Longs and buying in bulk from Costco. It seems to be the new consumer trend in Hawai`i. More and more are treating Costco as a grocery store than a wholesale store, taking away business from the supermarkets and local drug stores.

I don't know how this would add to the overall analysis, but Walgreens is going to have try pretty hard to make themselves apart of Hawai`i.

That said, who knows. I'm sure people said the same thing about K-Mart and Walmart when they first came to the Islands. Or the Home Depot. On and on.

So, I read this morning that CVS is buying Longs Drug Stores. NOW, will y'all mind if we get a Walgreens' on Kauai? ;)

So, I read this morning that CVS is buying Longs Drug Stores. NOW, will y'all mind if we get a Walgreens' on Kauai? ;)

Oh no! Seriously?
How terrible :(

First they destroyed the family-based Eckerd brand in Florida, now they're going after Long's.

Oh no! Seriously?
How terrible :(

First they destroyed the family-based Eckerd brand in Florida, now they're going after Long's.

Drug store chain CVS Caremark Corp., looking to build its West Coast presence, said Tuesday it would buy Longs Drug Stores Corp. in a deal valued at $2.7 billion.


http://www.chicagotribune.com/business/sns-ap-cvs-caremark-longs-drug-stores,0,1499788.story

So, I read this morning that CVS is buying Longs Drug Stores.

I'm in Hawaii now and heard this on the local news last night. If what CVS did to Osco Drug (at least in Arizona, where I live) is any indication, locals cannot imagine what is about to become of their beloved Longs.

What a shame. :(

I'm in Hawaii now and heard this on the local news last night. If what CVS did to Osco Drug (at least in Arizona, where I live) is any indication, locals cannot imagine what is about to become of their beloved Longs.

What a shame. :(

It will be like the devil taking up residence in St Peter's.

At the very least, Longs' stores in Hawaii will keep the name Longs.

At the very least, Longs' stores in Hawaii will keep the name Longs.

I wonder how long "for the foreseeable future" is.

I wonder how long "for the foreseeable future" is.
Till everyone stops caring...

Till everyone stops caring...

Not sure that has much to do with anything. Federated Dept. Stores changed Marshall Field's to Macy's in Chicago way before people stopped caring. There is still the occasional protest in front of the downtown store on State Street.

Not sure that has much to do with anything. Federated Dept. Stores changed Marshall Field's to Macy's in Chicago way before people stopped caring. There is still the occasional protest in front of the downtown store on State Street.
Lot different here in the Islands, IMHO.

Indeed. What slippahs, az, and boca said on all counts.

Having also seen what CVS did elsewhere, there is reason to be worried.

Lot different here in the Islands, IMHO.

Lots different meaning what? The name change would be accepted gracefully?

The name change would be accepted gracefully?

It's more, imo, that there would be a sad sense of shikata ga-nai (to use a phrase often heard here).

And, btw, it's not an unknown phenomenon that folks love Hawai`i for all the ways that it's not like home, and then complain about the ways that it's not like home. ;)

Lots different meaning what? The name change would be accepted gracefully?

I wouldn't be surprised to pull up to a newly minted CVS and find someone spraypainted "Longs Forever" over the CVS sign - or something like "Haole CVS - Go back to the mainland!".

If CVS was smart, they would keep the Longs brand, especially in Hawaii. Albertson's bought Lucky a few years ago and the quality IMHO went down - at least looked like it. When Save-Mart bought Albertson's they brought back the Lucky name which is a step up from Albertson's.

This might be even worse....

Walgreen Tops CVS Offer for Longs

NEW YORK -- Walgreen Co. made an offer late Friday to buy Longs Drug Stores Corp. for $2.8 billion, hoping to unseat a rival offer from CVS Caremark Corp. that Longs had already accepted.

Walgreens said it would pay $75 a share in cash to buy the California-based Longs, besting CVS's price of $71.50 per share, ...

http://online.wsj.com/article/SB122126726883530769.html?mod=hpp_us_whats_news

This might be even worse....



http://online.wsj.com/article/SB122126726883530769.html?mod=hpp_us_whats_news

or better. And at least clean.