re: Why are CVS and Walgreens stores always close to each other?(Posted by Golfer on 11/3/10 at 6:42 pm to robce22)
1. GIS data identifies that location as the most ideal for that retail idenity.
2. Prevalent marketing theory: consumer identifies a location as being where a certain type of store is (pharmacy, hotels, grocery) and will simply pick one at random each time. Essentially it supersedes brand loyalty.
wickowick LSU Fan Head of Island Member since Dec 2006 27241 posts Online
re: Why are CVS and Walgreens stores always close to each other?(Posted by wickowick on 11/4/10 at 10:06 am to LSUDad)
If I remember correctly from marketing, the fast food joints, and restaurants in general benefit from being grouped together instead of standing alone. The thinking is that it becomes a destination location when multiple items or choices can be found and people will travel to eat there. Therefore the individual stores benefit from having competition.
DieSmilen Southeastern LA Fan My Rubbermaid Desk Member since Dec 2007 1381 posts
re: Why are CVS and Walgreens stores always close to each other?(Posted by DieSmilen on 11/5/10 at 3:36 pm to LSUAfro)
I remember reading an article back in 2001 that talked about how much money McDonalds spends on research before they open a store. The article quoted some big wig at Burger King who said something on the lines of "we don't spend any money researching store locations, we figure if it's good enough for McDonalds it's good enough for us.