Walgreens says ‘e komo mai’ to Hawaii

HONOLULU —“E komo mai” means something akin to “you’re always welcome” in Hawaiian. Walgreens brass extended that greeting here for the first time this month.

In a colorful island sendoff that included a traditional Hawaiian blessing, Walgreen Co. celebrated its first foray into the nation’s 50th state with the grand opening of its first drug store in Hawaii Nov. 1. The store—built on the site of a former Tower Records outlet on busy Kapiolani Boulevard near the vast Ala Moana shopping center—is the first of what company officials promise will be a saturation campaign to seed the islands with as many as 30 stores in coming years.

Three more Walgreens are expected to open in the second half of 2008, in Kaneohe and Kalihi and on Maui.

“We’re going to make substantial investments in Hawaii in the years ahead,” said Dana Psomas, Walgreens district manager for the state.

The grand opening drew Hawaii Governor Linda Lingle, as well as Walgreens chairman and chief executive officer Jeff Rein, who presented a $5,000 donation from Walgreens to the local chapter of the American Diabetes Association.

“As a healthcare provider, we will help improve the lives of local residents living with diabetes, especially the 20 percent of Native Hawaiians with the disease,” Rein said. “That’s two-and-a-half times the rate of other residents. Our pharmacists can have a real impact on helping these patients manage their diabetes and live a healthy life.”

Clark Fujihara, district pharmacy supervisor for the state, added that the chain would offer Hawaii residents pharmacy services “that aren’t currently offered, such as drive-through pharmacies.”

With 9,000 square feet of sales space, Walgreens’ first Hawaii store is roughly 2,000 square-feet smaller than the company standard. Future stores in the state will be larger, officials said, allowing for drive-throughs, more close-in parking and an even broader selection of local products.

Despite the relatively compact size of the Honolulu store, Walgreens leaders pointed out, the densely merchandised unit is large enough to encompass some 20,000 products, including many from more than 50 local product vendors.

“We’re especially proud to have so many local suppliers represented in a store smaller than our typical size,” Psomas said. “We’ve learned from our vendors what is important to Hawaii’s customers, and that’s reflected in our offerings.”

Those offerings will go beyond products that are traditionally supplied locally, such as bread, dairy products, soft drinks and water, according to Walgreens. The company is also using local suppliers for product categories that include candy, local snacks, grocery items, automotive needs, souvenirs and greeting cards.

“Being new to the market, their assistance is invaluable to us,” said the DM. “We want to…merchandise our stores to the local community, neighborhood by neighborhood.”

The new store is one of the first Walgreens units to feature Café W, a self-serve beverage fountain and food bar. “If our customers like this first store, they’ll love our full-featured stores opening next year,” said Psomas.

Walgreens’ far-flung leap into Hawaii puts it on a collision course with the state’s only dominant drug retailer, Longs Drug Stores. Operating out of Walnut Creek, Calif., Longs has been a fixture here since 1954 with 36 stores open in the islands. Some of its locations here are said to be some of the highest-volume drug stores in the United States.

Seeking to exploit the rich potential of its newest and most distant expansion target, Walgreens is steadily nibbling at prime real estate opportunities in the market, lured by the Islands’ more than 1.2 million consumers, its millions of yearly visitors and its relatively high standard of living.