Here They Come
“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.”
That story in the Honolulu Advertiser must have Long’s worried.
If it doesn’t they are asleep at the wheel. With the lack of major competion all these years, they have been able to survive complacently.
I sense that those days are over. Competition is a great motivator and it will be very interesting to see how they (Long’s) go about that process.
What do you think is going to happen as more and more Walgreen stores are opened?
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June 24th, 2007 at 1:25 pm
This (Hawaii) might be where the giant stubs his toe! Longs has a long history of service to Hawaii (even though they are based in Northern Cal) - maybe not great service, but there might be a little backlash to the idea of a big Mainland company “going after them.” I’m sure Longs isn’t going to sit idly by either. In any case it’ll be good for consumers. I’ve often heard Ron Martin say: “When we compete, everybody wins!”
June 24th, 2007 at 2:03 pm
They have survived Costco, Sams, Wal-Mart, K-Mart and others. The retail COMPETITION for ALL of us is and will continue to be at an all time high. They will make it.
No question this is the most “direct” competition they will have seen, but it is definitely not as severe as the storm they have already survived and seem to be very busy every time I visit a Longs
One key will be real estate. Longs has many good locations at much lower rents than Walgreens is entering the market at. It will be interesting…..
June 24th, 2007 at 2:26 pm
DICK says: June 24th 2:26 p.m.
Most of us “old timers” have a lot of respoect for Long’s. They have
been an important part of our market experience.
Walgreens may find this market to be a disapoointment as far
as “return on nvestment”. On the other hand, they are quite intelligent
in this area.
W#algreen’s will be a real competitor. They will have to work very, very
hard to succeed. Walgreen’s will stimulate Long’s to do an even more
outstanding job Both firms will find their margins narrowed.
In the end, I believe, the Hawaii CONSUMER will gain by the competition.
June 24th, 2007 at 3:16 pm
H Ron,
I am 100% sure that Walgreen will give Longs a “run for the Money”….. just like City Mill “straightened up their act” when HomeDepot and Lowe’s came to the Islands…..
Wil they “shut down” Longs?….Nahh, I am guessing that Longs customers are loyal and some will keep going to Longs….. the merchandise selection will change a bit (for the better) and service will hopefully improve.
I am in the furniture retail side in Honolulu…… and boy, did the focus change 10 years ago, when someone came in and started “Hawaii smartest and fastest growing furniture company!”….. The final result for the consumers are better selection, better pricing and better service. A sofa that “should cost” $999.- now cost $999.- and not $1695.- which was the case during the past 30 years…..
So Welcome Walgrens!!! We’ll love to have you…… and I truly hope that a major player in the car dealer industry will be the next to come in…… Go to the Mainland and you see unbelievable car dealerships…. Try go to Honolulu Caddilac!! It is a joke…. An $80,000.- purchase and you are invited into an old small office with a 20 year old beat up desk and some vinyl pull up chairs….. Thanks for taking so good care of me!….The Tony Group did the right thing and went out of town and created an “Auto Mall”, which is where those dealerships belong…. Putting Greens, huge TV screens, Starbucks coffee shops built in to the dealership is just some of the things the Mainland dealerships offer…… In other words, buying your $80,000.- car should feel like a unforgettable day at the Spa, right? Pampered and relaxed like you went to Heaven… Why not?
June 24th, 2007 at 3:33 pm
BRING IT ON!
The more competition . . . the better! I’ve always been amazed at the lack of direct toe-to-toe competition for Longs in Hawaii. We have to admit that Longs offers great deals and I wish them well. I think they can handle the competition. “Make Walgreen’s a part of your day.” just doesn’t have the same ring to it . . .
By the way, I’ve recently discovered Longs.com 1-hour photo processing via their Website at the Longs store of your choice. Drag-and-drop interface and they send you an email (in an hour!) telling you your photos are ready. They do an outstanding job (19 cents for 4″x6″ pics).
Now, if we can get some REAL competition to these gas companies!
June 24th, 2007 at 4:31 pm
I too agree with many. Competition tends to hone up ones skills. It is a good thing! LONGS has always been very price conscious when it comes to their advertised items and that has been their niche. They understood their customers needs.
Where they fall short is in the Customer Service Dept.
The clerks always appear harried and rushed. Stocking of shelves seems to be their number one priority. I find the service in the outskirt stores, ie. Mililani, Kapolei, etc., to be better. Not as frantic as the town stores.
Maybe LONGS needs a Ron Martin?
June 24th, 2007 at 5:28 pm
Competition is a good thing and I agree with what many have already said about the benefit of it. As someone pointed out, Walgreen’s will have some pretty high investment costs to get stores physically close to Longs just based on Hawaii’s limited real estate.
The real question is how strong is their (Longs) customer loyalty? In other words, Longs has been a Hawaii institution for so many years, have they really established a loyal following? Are they open and interested in turning their stocker/clerks into real sales people and customer service ambassadors?
This will be fun to watch!
June 25th, 2007 at 8:13 am
There’s a higher and purer form of energy that comes from competition. Whenever this occurs, everyone wins. Long’s will be stronger, and we the people benefit the most…..I ‘m running out the door to buy Walgreen stock as I type…
June 25th, 2007 at 10:06 am
“If you don’t know where you are going, you might end up some where else.”
June 25th, 2007 at 11:15 am
I concur with all of the nice things said in here about Long’s as well as the power of competition. I also must agree with some comments I read about their service shortcomings.
To whip Walgreen’s akole would be easy if they were to follow Ron Martin’s Pro-Active, No-Pressure Selling System. I’m sure that they could grab an edge that way because I think it is likely that Walgreens, being as large as they are will most likely be just like Comp USA, Macy’s and the other biggies that think customers are capable of servicing themselves, will ask questions if they have them, and assume that their big numbers mean they are doing the best that they can.
C’mon Ron go talk to Long’s, maybe that are still small enough to listen to you. Maybe they would like to be laughing at Walgreen’s attempts to take their business.
June 30th, 2007 at 5:15 am
Excerpts from a story in today’s Advertiser
Walgreens tapping into local Hawaii products
Walgreens this week took another step toward establishing itself in Hawai’i by hosting a meeting for prospective product suppliers, and the company said the turnout was overwhelming.
An estimated 350 to 400 people attended a Wednesday meeting in Waikiki intended to attract potential suppliers of local goods for what the nation’s largest drugstore chain hopes will be as many as 40 stores in the state.
The meeting predominantly drew suppliers of goods from Hawai’i, including food and books, but also drew distributors of national products from batteries to beverages.
There were more vendors than people to meet with them.
Walgreens stores will probably have 25 percent more local products than its typical stores in other U.S. cities.
Any vendors still interested in supplying Walgreens in Hawai’i can contact the company at Hawaii.vs@walgreens.com.
October 25th, 2007 at 6:57 pm
[…] They announced earlier this year that they intend to open 30 stores in Hawaii and will position them as close to Longs as they can. This one will be right across the street. […]
May 2nd, 2008 at 10:54 am
One afternoon, I was in the backyard hanging the laundry when an old, tired-looking dog wandered into the yard. I could tell from his collar and well-fed belly that he had a home. But when I walked into the house, he followed me, sauntered down the hall and fell asleep in a corner. An hour later, he went to the door, and I let him out. The next day he was back. He resumed his position in the hallway and slept for an hour.
This continued for several weeks. Curious, I pinned a note to his collar: “Every afternoon your dog comes to my house for a nap. ”
The next day he arrived with a different note pinned to his collar: “He lives in a home with ten children - he’s trying to catch up on his sleep.”
I cried from laughter
Sorry, if not left a message on Rules.