Friday, March 7, 1997 | 11:59 a.m.
The nation's largest drugstore chain will continue its expansion in the Las Vegas market, more than doubling the number of new stores here by the end of the year and adding another 12 within three years.
L. Daniel Jorndt, president of the Walgreen Co., which operates five Walgreens stores in the Las Vegas Valley, said today that the company would invest more than $75 million in Southern Nevada in the next three years, growing to 13 stores by the end of 1997 and 25 by 2000.
Jorndt and Charles Walgreen III, chairman of the board of directors for the company, were in Las Vegas this morning for a grand opening ceremony for the five stores, which have been serving customers since August.
Walgreen, casting an eye to the future of Las Vegas as a center for retirement living, plans to capitalize on a surging market of senior citizens, expected to grow to 100 million nationwide by 2010. Average prescription use doubles for most people between the ages of 45 and 65.
The push by Walgreen, which will result in an additional 750 to 1,000 jobs here, is an assault on the advantage held by market leader Sav-on in the Las Vegas area. Sav-on, a division of Salt Lake City-based American Stores Co., recently opened three new outlets in Southern Nevada, incorporating a Walgreen hallmark -- the drive-through pharmacy window.
"Very rarely have new stores taken off as well as our first five in Vegas," Jorndt said in prepared remarks. "Frankly, our challenge has been keeping up with business. Our volume took off like a rocket."
Jorndt attributed the company's success in Las Vegas to strong name recognition since many Southern Nevada customers either are tourists or relocatees from existing strong Walgreen markets like the Midwest.
Walgreen's expansion in Las Vegas is part of a record growth program by the Deerfield, Ill.-based company.
Nationwide, the company opened 210 stores in 1996 and will add at least 230 this year. It plans to build 280 per year with a goal of a total 3,000 new properties opening nationwide by 2000.
Capital expenditures this year will top $400 million, Jorndt said, but despite the rapid expansion, earnings are at record levels. Jorndt said 1996 was the company's 22nd straight year of record sales and earnings. The company is one of 65 publicly traded companies to show at least 10 straight years of higher earnings and dividends per share.
The new Las Vegas locations will be scattered across the valley with a Strip location on the drawing board.
Of the approximately 2,250 stores the company operates in 34 states and Puerto Rico, 1,200 are free-standing operations like the ones in Las Vegas. More than 700 have drive-through pharmacy service.
Jorndt said the company plans to bring its 2,250 store managers to Las Vegas for a meeting in August.
In addition to Walgreens and Sav-on, the Las Vegas pharmaceutical market includes PayLess and units in some Smith's and Vons supermarkets, Wal-Mart and Kmart stores. A handful of independents have a small market share.
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