Duane Reade Remakes Store Brand Image
Duane Reade’s store brand makeover wins over Walgreens, strikes pose with new york attitude.
Founded in 1960 in Manhattan on Broadway between Duane and Reade Streets, Duane Reade, NY, NY, has grown to become the largest drugstore chain in New York City. However, over the years its age had begun to show in its store dress and merchandise mix. After it was sold by the founding Cohen brothers in 1992, its worn look was compounded by heavy debt from LBOs by successive investment bankers and private equity firms.
Prior to its sale to Walgreens in April 2010, Duane Reade’s former owner Oak Hill Partners, in an effort to resuscitate the aging chain, initiated a major modernization program, which it aptly named “Prescription for Change.”
(Editor’s Note: For more information on Duane Reade, see the cover story “DR Goes Vogue” in Private Label’s May-June 2010 issue.
New York Attitude
Duane Reade engaged in extensive consumer research to find out what New Yorkers wanted and needed from their neighborhood drug store. Based on the findings, the retailer revamped its image, store design, and product offering to create a more efficient and enjoyable shopping experience.
To give visual expression to the brand’s new positioning — New York Living Made Easy – Duane Reade has employed the creative services of CBX, a strategic branding consultancy headquartered in NYC.
“Our mission was to broaden Duane Reade’s private brand product appeal, enhancing the position as the preferred store for New Yorkers and further bringing to life the brand’s new positioning, New York Living Made Easy,” explains Todd Maute managing partner, CBX.
To build upon Duane Reade’s new image, CBX collaborated with the retailer on multiple fronts to help strengthen their relationship with customers, according to the CBX press release announcing the project.
First CBX provided input into Duane Reade’s private brand architecture, and designed its private label brand imagery and packaging systems. Then they helped revamp the loyalty card brand image and collateral material. To further establish direct communication with Duane Reade’s customer, CBX designed an edgy New York publication called the Duane Reader to help market and support all of their branding and product development efforts.
The private label brand portfolio was completely revamped along with the product mix to draw consumers into the store as well as enhance their ‘uniquely New York’ and value messages. Multiple brands across 2,000 SKUs were developed.
Private Brand Portfolio
DR Delish: is a new line of premium foods that stand out on shelf with black and white packaging and feature fun and edgy New York-themed photography and proprietary artwork of New York City landmarks.
Apt. 5, was repositioned as a household products brand with an apartment living slant. Products in bright, colorful packages pop from the shelf. A green version, Apt.5 Goes Green, was designed to take place alongside other credible “green” brands.
DR is a line of HBA products that were formerly found under the Duane Reade label. Bright bands of color delineate the line of products on white, apothecary-style packaging compositions.
In addition, a value line of products was developed to provide the Duane Reade customer with extreme value in key categories. Products include high-value items such as bottled water, paper towels and nuts with iconic, UPC-style illustrations of New York landmarks (i.e. The Statue of Liberty, Brooklyn Bridge).
Products from these private brand lines began rolling out in October 2009.
In February 2010, Walgreen Co., Deerfield, IL, announced a definitive agreement to acquire Duane Reade from Oak Hill in a cash transaction for a total enterprise value of $1.075 billion, which includes the assumption of debt. Walgreens completed the acquisition in April 2010.
