STAR-BULLETIN / 1976
CVS Caremark Corp., the second-largest drugstore chain in the U.S., has acquired Longs Drugs Stores Corp. for $2.9 billion. There are 37 Longs stores in Hawaii. Above, the Kailua branch more than 30 years ago.
|
|
Longs has isle history
The drugstore has developed a loyal following in Hawaii
STORY SUMMARY »
Walnut Creek, Calif.-based Longs Drugs Stores Corp. has developed a loyal following in Hawaii, with a history here dating back 54 years.
Longs reportedly open-ed its first store on Hotel and Bishop Streets in 1954, and was a hit with customers from the start.
An isle Longs store offers a different selection of products than a mainland location, plus the employees here wear aloha shirts. Many residents even think Longs is a homegrown Hawaii company, although it was founded by the Long brothers in California in 1938.
But the Longs stores in Hawaii can stand on their own, according to the president and chief executive of CVS Caremark, which is acquiring the company but keeping the name the same here.
FULL STORY »
Even though
Longs Drugs Stores Corp. is actually a California firm, it's rooted so well in Hawaii that many isle residents think it is a homegrown company.
Longs is actually based in Walnut Creek, Calif., an upscale suburb about 45 minutes east of San Francisco. Yesterday, Woonsocket, R.I.-based CVS Caremark Corp., the second-largest U.S. drugstore chain, acquired Longs for $2.9 billion.
Since establishing its first Longs store in Hawaii in 1954, the company's customer service and discount prices have developed loyalty among Hawaii customers, who look forward to its weekly discount books.
The first Longs in Hawaii was on the corner of Hotel and Bishop Streets downtown, according to Bob Sigall's book "The Companies We Keep," and the line to get in used to wrap around the block. Longs has since expanded to most of the state's major retail centers and malls.
Longs has also been successful at local product sourcing, which means it's a store where residents can find crack seed, kukui nut lei, gift bags, cans of Spam and wahoo, and slipper mops as well as drugstore items.
The staff at Longs also wear aloha shirts,different from the standard uniform at a mainland Longs.
Longs' humble beginnings also resonated with local customers, having been founded by brothers Joe and Tom Long in 1938, with the idea of offering low prices and the philosophy of "treating others as we, ourselves, would like to be treated."
Honolulu-based analyst Marty Plotnick said CVS was smart to keep the Longs Drugs name.
"There is no equity in the CVS name in Hawaii," Plotnick said. "They had to keep the Longs name or else people would be scratching their heads and saying, 'What is CVS?'"
The news came as a surprise to Sonny and Thelma Lee, a 38-year-old Kaimuki resident, who have been Longs customers for 30 years and enjoy the weekly sales and convenience close to their Kaimuki home.
"Hopefully they'll keep the same flavor instead of being mainland," said Sonny Lee.
Other customers expressed concerns about how the acquisition would affect local workers.
"As long as Longs stays the way it is and accommodates the locals with sales, I'm fine with it," said Tennyson Ubasa, a Kaimuki resident, who has been shopping at Longs since 1983. "I'm just concerned for the employees and management. I don't know if they will cut or bring in new management that could affect employees and the way things are run."
Many Longs employees were shocked by the news, but were instructed by management not to make public comment.
CVS, like Longs, was founded by two brothers named Stanley and Sidney Goldstein, along with a partner, Ralph Hoagland, who opened the first CVS store in Lowell, Mass., in 1963. CVS stands for Consumer Value Stores.
Longs Drugs was gearing up to do battle with newcomer Walgreen Co., which entered the Hawaii market with its first store in November. Walgreens plans to open between 25 and 30 stores in Hawaii.
Longs has 37 stores in Hawaii, and only recently began expanding again, with the acquisition of Gulick Pharmacy last year, and two stores in the works.
Plotnick noted that consolidations seem to be the trend in the drugstore industry. This buyout should provide significant competition for Walgreens, he said.
"CVS has greater buying power," he said. "They're much larger and I think they're going to be much more aggressive to the coming competition of Walgreens."
With additional reporting by Kristen Consillio