1. 14/01/2013
Duane Reade's
Smart Approach to
Private Label and
Branded
Neighborhood
Environments
Scott McCulloch
Todd Maute
Rob Eder,
Photographs from Drug Store News article 9/4/2012
What are we doing?
• Intro (aka, who are you and what’s a “Drug Store News?”)
• Set the table — DR in brief
• Rebranding:
stores, private brand
• Q&A
WHO IS DSN?
12x/Year
38k circ
80+ years
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2. 14/01/2013
WHO IS DSN?
Website
e‐newsletters
DSN.TV
DSN+
100K unique
visitors
250K views
Duane Reade:
A very brief history
DR: A brief history
• 1960. Founded Cohen bros. ‐
Lower Broadway
• 1992. 37 stores ‐ Sold to Bain ‐
$239 million
• 1998. 67 stores ‐ Public offering
• 2004. 239 stores ‐ Sold to Oak
Hlll ‐ $700 million
• 2010. 257 stores ‐ Sold to
Walgreens ‐ $1.2 billion
• 2013. 253 stores
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3. 14/01/2013
DSN Sept. 24, 2012
Walgreens: The
Transformer
http://drugstorenews.com/digital‐editions
The Original Transformer
“Duane Reade had started the new
drug store concept, and now you
see a lot of that influence coming
back to Walgreens and
accelerating where we’re headed…
a lot of what we’re doing that
acquisition helped to accelerate.”
‐Greg Wasson, president/CEO, Walgreen Co.
DSN, Sept.24, 2012
Health & Daily
Living Store
“What I saw was an opportunity to
move away from a very specific,
needs‐driven reason to shop and
become a place where people
want to shop.”
‐Joe Magnacca, president daily living products
and solutions, Walgreens
DSN, Sept.24, 2012
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4. 14/01/2013
What’s a Health &
Daily Living Store?
What’s a Health &
Daily Living Store?
What’s a Health &
Daily Living Store?
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5. 14/01/2013
What’s a Health &
Daily Living Store?
What’s a Health &
Daily Living Store?
CONTENT RELEVANCE,
CONTENT RELEVANCE,
CONTENT RELEVANCE…
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6. 14/01/2013
Duane Reade's
Smart Approach to
Private Label and
Branded
Neighborhood
Environments
Scott McCulloch
Todd Maute
Rob Eder,
Photographs from Drug Store News article 9/4/2012
Re-branding Objectives
• Remain Relevant
• Distance ourselves from the competition
• Not just listen to our customers but Hear
them
– Convenient, wider aisles, expanded
categories
• Fashion forward, innovative design
• Customer Service focused
• “New York Living Made Easy!”
Photographs from Drug Store News article 9/4/2012
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7. 14/01/2013
STRATEGIC DRIVERS ORGANIZATION OF OFFERING
EASY How I Feel
Pharmacy, prescriptions
& medicine
REWARDING
What I Need Now How I Look
Personal &
Beauty & personal care
household consumables
UNIQUELY NEW YORK
Leverage “Buying to Selling model”
Evening Population
Daytime Population
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8. 14/01/2013
How I Look
Photographs from Drug Store News article 9/4/2012
How I Feel
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9. 14/01/2013
How I Feel
What I Need Now
What I Need Now
Photographs from Drug Store News article 9/4/2012
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10. 14/01/2013
What I Need Now
Photographs from Drug Store News article 9/4/2012
42nd & 8th Ave
42nd & 8th Ave
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11. 14/01/2013
42nd & 8th Ave
42nd & 8th Ave
42nd & 8th Ave
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12. 14/01/2013
42nd & 8th Ave
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
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13. 14/01/2013
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
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14. 14/01/2013
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
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15. 14/01/2013
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
40 Wall Street
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
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16. 14/01/2013
40 Wall Street
Photographs from Drug Store News - article 7/5/2011
100 Broadway
Photographs from Drug Store News article 9/4/2012
100 Broadway
Photographs from Drug Store News article 9/4/2012
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17. 14/01/2013
100 Broadway
Photographs from Drug Store News article 9/4/2012
100 Broadway
Photographs from Drug Store News article 9/4/2012
100 Broadway
Photographs from Drug Store News article 9/4/2012
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18. 14/01/2013
Building the brand through
private brand innovation
and design
Private Label Objectives
• Create something new and Fresh
• Distance Duane Reade from the
Competition
• Remain Relevant
• Attract New Customers
• Maintain and/or Build Loyalty
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19. 14/01/2013
Leverage Customer Insight
• Largest NY chain but - Not leveraging it
• Improve price perception
• Stylish customer with urban attitude
• Family focused- balancing a career
• Believes in health
• Progressive views – environmentally aware
• Likes to shop
• Loves a deal
• Loves NY
Design Approach
• Support “NY Living Made Easy” Mantra
• Create unique and ownable design
• Develop brand design systems to work
across multiple categories
• Leverage New York imagery and
iconography
• Create clarity across tiers
Where they were
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20. 14/01/2013
Where they wanted to go!
Win
Differentiate
Compete
with a New York Twist
Private Label Brand Innovation
Private Label Brand
Innovation Delish
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21. 14/01/2013
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
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22. 14/01/2013
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
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23. 14/01/2013
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
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24. 14/01/2013
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
Private Label Brand
Innovation Delish
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25. 14/01/2013
Private Label Brand
Innovation Delish Fresh
Private Label Brand
Innovation Delish Fresh
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
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26. 14/01/2013
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
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27. 14/01/2013
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
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Private Label Brand Innovation
DR Brand Uniquely NY since 1960
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
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29. 14/01/2013
Private Label Brand Innovation
DR Brand Uniquely NY since 1960
Private Label Brand Innovation
Apt 5
Private Label Brand Innovation
Apt 5
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30. 14/01/2013
Private Label Brand Innovation
Apt 5
Private Label Brand Innovation
Apt 5
Private Label Brand Innovation
Apt 5 goes green
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31. 14/01/2013
Private Label Brand Innovation
Apt 5 goes green
Private Label Brand Innovation
Apt 5 goes green
Private Label Brand Innovation
Apt 5 goes green
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32. 14/01/2013
Brand Innovation
Brand Innovation
Private Label Brand Innovation
no brand name
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33. 14/01/2013
Private Label Brand Innovation
Basics - no brand name
Private Label Brand Innovation
no brand name
Private Label Brand Innovation
no brand name
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34. 14/01/2013
Private Label Brand Innovation
no brand name
Private Label Brand Innovation
no brand name
Private Label Brand Innovation
no brand name
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35. 14/01/2013
Private Label Brand Innovation
Seasonal - Christmas in New York
Private Label Brand Innovation
Seasonal - Christmas in New York
Private Label Brand Innovation /
Growler Refill Counter
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36. 14/01/2013
Private Label Brand Innovation /
Growler Refill Counter
Private Label Brand Innovation /
Growler Refill Counter
Innovative Destinations-
Packaging as part of environment
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37. 14/01/2013
Innovative Destinations-
Packaging as part of environment
Gourmet Lunch in New York
Phase 2
Portfolio integration with
Walgreens
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38. 14/01/2013
Good & deLISH
Nice!
Pet Shoppe
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39. 14/01/2013
Ology
Thank You
Scott McCulloch
Todd Maute
Rob Eder,
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