Duane Reade readies for third quarter

NEW YORK —With its new chairman and chief executive officer John Lederer less than six months on the job, Duane Reade continues to garner solid same-store sales, especially at the front end, and that trend will likely continue as management focuses on several key initiatives.

“During the quarter we remained concentrated on refining the merchandising mix, upgrading customer service and meeting the needs of our unique and diverse customer base,” Lederer told analysts during a July 31 conference call to discuss second-quarter results. Lederer, former president of Canadian supermarket chain Loblaw Cos., earlier this year succeeded Rick Dreiling, who left Duane Reade in January for the top spot at Dollar General.

During the second quarter ended June 28, the 244-store retailer posted same-store sales growth of 4.7 percent, with a front-end same-store sales increase of 5.6 percent. Pharmacy same-store sales increased 3.6 percent.

In the near term, the company will be focusing on the following initiatives to “improve the business without breaking stride,” Lederer noted.

Utilizing shopper and employee research to enhance the brand and better connect with consumers.

Building a team across all levels of the organization from store-level employees to senior management. As part of this, the company expected to soon name a new chief merchandising officer succeeding David D’Arezzo, senior vice president and chief marketing officer, who resigned in April.

Improving pharmacy offerings by attracting and retaining pharmacy talent, enhancing customer service and extending its commitment to a health-and-wellness offering.

Strengthening its infrastructure, which includes an upgrade of its inventory management processes and the development of the chain’s first warehouse management system.

For complete coverage of Duane Reade’s second-quarter financial results, visit www.drugstorenews.com.