The Katz Group believes it has come up with a prescription for success for an ailing Jasper Avenue location.
The Edmonton-based company, one of the largest chain drugstore operators in North America, is transforming a spot better known for restaurants into the flagship for its Rexall operations.
The store, which will introduce the new prototype for Katz Group drugstores across Canada – it runs approximately 1,700 pharmacies under the PharmaPlus, Medicine Shoppe, Guardian, IDA and Rexall brands – is located in Edmonton’s Oliver district, just west of the downtown core, and across from Earl’s Tin Palace restaurant.
The 12,000-sq.-ft. flagship, with onsite parking for 60 vehicles, will leave the old drugstore model behind.
“What’s exciting about it is this will be our new Rexall health centre model, which will incorporate medical services as well as a pharmacy,” said Gerald Williams, president of C & H properties Inc., the real estate company for the Katz Group.
“There will be medical doctors onsite, it’s a one-stop shop for customers. If somebody is sick or has a sick family member, they can bring them to the Rexall centre, see a medical doctor, receive counselling on their medication and get their medication.”
The large-format, full-line drugstore will incorporate the walk-in medical clinic in the same building. The project will create 40 to 50 jobs.
Targeted for a July opening, clinic and drugstore hours have yet to be finalized, though it’s expected both will have extended hours of operation.
Inside it will be a new shopping experience for customers, said Williams, who would not reveal details. However, he did say, “It can’t be compared to any of the other drugstores out there.
The store is designed to reflect Andy Giancamilli’s view of the pharmacy of the future.
Giancamilli, a pharmacist by training, previously held the position of president and COO of Kmart Corp. and president and COO of Perry Drug Stores, Inc., a U.S.-based drugstore chain.
He was named president and COO of Katz Group North America late last year.
As for the location, Williams said there is a “significant opportunity” in the Jasper Avenue spot with the right mixture of exposure, parking and potential customers.
“It’s central to the high-density Oliver neighbourhood, but it will also serve customers all through neighbouring Glenora and the downtown,” added Williams.
Dave Young, a vice-president and Edmonton manager for CB Richard Ellis, also likes the location.
“I think it’s very good for that use,” said Young. “For the amount of population there, there’s not a lot of services in the area.”
Young pointed to growth on the western edge of downtown, such as Railtown, which translates into more people in the general vicinity.
As to the recent spate of restaurants that opened and closed on the same site, Williams said that the site was one he originally developed for Maxwell Taylor’s and that restaurant did very well there until the company ran into corporate difficulties.
While the restaurants that followed in its footsteps did not have the same success, including Senor Frog’s, Lonestar, which was a Texas-style eatery, and River City Chop House, “You have to look at the competition in the area,” Young said.
That included Earl’s and Normand’s in the immediate vicinity and Joey Tomatoes, along with a number of others nearby.
When the latest restaurant closed, said Williams, the location and the density felt right for the Katz group. The company purchased the site last year and started developing in February.
Another factor that should help to ensure its success is the familiarity of the Rexall brand, which dates back to 1903 and became a fixture in North American homes in the 1940s, ’50s and ’60s.
“The Rexall name is well recognized by the baby boomers,” said Williams.
There are about 150 Rexall stores in Canada, where the Katz Group owns the rights to the name. They’re primarily located in Western Canada and represent Katz’s fastest-growing brand.
Meanwhile, plans are under way for development of the Rexall prototype across the country.
“We are currently working on a number of sites in the Calgary marketplace, Red Deer, Medicine Hat, Lethbridge, Grande Prairie, Fort McMurray, plus most of the near-metro markets such as Sherwood Park, St. Albert and Airdrie,” said Williams. “These are new openings for this year and next, all Rexalls. They’ll be similar to the prototype or variations on the theme.”
In British Columbia, there will be a new site in Victoria, complementing existing Rexall stores. The new flagship prototype is also being developed in Vancouver, the Lower Mainland and the B.C. Interior.
“It’s a very aggressive program,” said Williams. “Our goal is to continually update and improve the drugstore experience.”
