Kinney Drugs

Founded by Burt Orrin Kinney, who opened the company's first drugstore in 1903, Kinney Drugs has grown to number about 95 stores in central and northern New York and Vermont. Most of the company's stores are free-standing units, with pharmacies, one-hour photo developing services, and a growing selection of convenience foods. The 100%-employee-owned company maintains its own distribution warehouse and offers about 800 different products, including Kinney-branded over-the-counter medicines. Pharmacy accounts for 75% of sales. Besides retail stores, the firm operates ProAct prescription benefit management firm, HealthDirect institutional pharmacy services, and HealthDirect mail order pharmacy services.

Financial Analysis

Kinney Drugs rang up about $810 million in sales in 2011, a nearly 3% increase vs. the prior year. Prescription drugs sales totaled $616 million, or 76% of total sales. Sales per store at Kinney averaged $5.5 million.

Strategy

To distinguish itself from its national competitors, including Walgreen, CVS, and Wal-Mart, the regional retailer strives to maintain a hometown feel. To that end, it launched the KinneyCare Discount Prescription Plan for its insured and uninsured pharmacy customers. Under the plan more than 350 generic prescriptions are available for $12 for a 90-day supply. The plans costs $10 a year to enroll. The chain's ReadyScripts automated refill program sends messages to remind patients to pick up their prescriptions and offers free delivery to the mobility-impaired customers

With the worst of the recession -- and concurrent decrease in spending on health care and prescription drugs -- behind it, Kinney acquired four independent pharmacies in central New York and Vermont in mid-2012, bringing its store count to 94.