Founded in 1960 by brothers Abraham, Eli, and Jack Cohen, health and beauty store chain Duane Reade Inc. began with only three stores and a warehouse on Broadway in Lower Manhattan and now operates over 250 drugstores throughout New York City and the surrounding area. In 1992, the Cohens sold Duane Reade to Bain Capital for a reported $239 million while majority ownership was then sold to investment bank Donaldson, Lufkin & Jenrette five years later. Duane Reade Inc. changed hands once again in 2004 and went private after being acquired by Oak Hill Capital Partners. The chain continues to expand every year and in 2010, Duane Reade Inc. was acquired by the Walgreens Company for over $1 billion. Read on to find out five things you might not know about Duane Reade.
5. Duane Reade’s Best Store was Destroyed on 9/11
In 2001, Duane Reade’s best-performing store, located at the World Trade Center, was destroyed in the September 11th attacks. Even though sales rose between 2001 and 2003, the combined impact of union disputes, the local recession, and the destruction of its most profitable store forced the company to slow its expansion from 30 stores a year to no more than 17 a year.
4. How Duane Reade Got its Name
Duane Reade Inc. takes its namesake from the chain’s first successful full-service drugstore, one of the three stores that the Cohens opened on Broadway in 1960. The store was located between Duane and Reade Streets in Manhattan, hence the chain’s name. Duane Reade now has more stores in New York City and the surrounding area than any other drugstore chain.
3. The Brooklyn Location Has a Beer Bar
In late 2010, Duane Reade opened a new store in Brooklyn that had something the local neighborhood didn’t. Located on Bedford Avenue in the Williamsburg neighborhood, you’ll find a Duane Reade with nine beers on tap (for tastings only), refillable take-home growlers, and a walk-in refrigerator filled with national, local, imported, and craft brews.
2. The Store’s Layout is Split into Four Movable Blocks
Gary Charboneau, the company’s former Senior Vice-President of sales and marketing, developed a store layout strategy in the 1990s that included four different and movable sections applicable to each store. Cosmetics and beauty products were placed near store entrances, the pharmacy section was moved to the back of the store, and seasonal and grocery sections took up the remaining space.
1. Location, Location, Location
Surprisingly, Duane Reade Inc. doesn’t trace its success to everyday low prices, helpful employees, or a wide selection and availability of brands. It’s the chain’s locations that matter most. By using population-density maps, electronic beams, and hand counters to count the number of people who pass by a particular location, Duane Reade’s marketing department has been successful in acquiring any and all spaces that lead to more potential customers.
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