JENNA PRICE/The Register-Mail

Osco Drug, an original tenant at Sandburg Mall where it has operated the past 30 years, will close its doors Aug. 4.

Osco closing store at mall

Declining sales, earnings cited; 20 will lose jobs

Saturday, July 9, 2005

By JOANIE STIERS

The Register-Mail

The store is among the original tenants of the mall at 1150 W. Carl Sandburg Drive. The store's 20 employees learned Thursday night that Osco is closing Aug. 4 because of poor sales. The timing is consistent with when its lease expires.

"We have actually experienced declining sales and earnings in this store for some time," said Karen Ramos, spokeswoman for Osco. She was unable to say how long.

"When that happens, we review every one of our stores on an annual basis. When we have a store in a situation like this, we also begin efforts to build up sales and earnings."

New marketing and customer service efforts were unsuccessful, she said, leading to a decision to close the store at 5 p.m. Aug. 4.

Osco is a drug store that includes a pharmacy and offers health and beauty products, food items, liquor and more.

The local manager declined comment and referred all questions to the corporate level.

About three of the Galesburg store's 20 workers are full-time, Ramos said. Some will be eligible for severance pay and other benefits. They also have the opportunity to transfer to an Osco store in another market.

Nationwide, parent company Albertsons of Boise, Idaho, operates 320 independent stores under the Osco name. Galesburg's is the only one to close this year, Ramos said.

She was unable to say how many of those 320 drug stores are in malls like Galesburg. Mall-attached stores are a minority because in general the company has found that shoppers prefer a free-standing drug store with a drive-though pharmacy, she said.

"While our mall stores had experienced success in the past, as shoppers looked for more convenience and in-and-out parking in front of a store and a drive-through pharmacy, they tended to go to those stores that offer those options," she said. "That's no reflection of the mall itself. It's a reflection of customer preference."

Meanwhile, Sandburg Mall has had internal meetings to pursue leasing opportunities for available mall spaces, marketing coordinator Jennifer Scott said. The Osco space is 14,700 square feet.

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Concerned about your prescription?

Pharmacy customers can tell the Osco pharmacist where they would like their prescription sent. Otherwise, Osco will be working with another drug store in town and will transfer all remaining prescriptions. That cooperating pharmacy is yet to be announced.