CVS-Revco deal affects businesses in Taneytown Only drugstore to close

another will be built near site of new Food Lion

September 04, 1997|By Donna R. Engle | Donna R. Engle,SUN STAFF

The impact of a $2.8 billion deal in which CVS Corp. of Rhode Island bought Revco D. S. Inc. of Ohio is being felt in Taneytown.

The city's only pharmacy, a Revco in the Taneytown Shopping Center at 520 E. Baltimore St., is scheduled to close, leaving an anchor position vacant and smaller merchants in the shopping center worried.

Meanwhile, CVS has submitted a site plan for a new drugstore across East Baltimore Street, on 1.06 acres adjoining a 4.5-acre tract where a Food Lion supermarket is under construction.

Information was unavailable yesterday from CVS on whether a time lag between the Revco closing and the new drugstore opening would leave Taneytown temporarily without a pharmacy.

New store by March 1998

June Ferestein, director of corporate communications, said CVS hopes to open the new store in March 1998, "weather pending," but she did not have a date for the Revco closing. She said the corporation generally tries for continuity.

CVS' acquisition of Revco in February continued the consolidation of the drugstore industry and made CVS the largest drugstore chain in number of stores, the second-largest in sales. The combined corporation has 4,000 retail outlets in 24 states.

The Food Lion site is not a shopping center, said Henry Alexander of ERA Alexander Realty Inc., who handled the sale.

Still, Food Lion welcomes the planned drugstore on the adjacent site.

"We think there's a lot of synergy there," said Tawn Nanh, spokeswoman for Food Lion Inc. of Salisbury, N.C. "It's a pretty standard setup in the shopping centers where we are."

The supermarket, scheduled to open in November, will be 33,000 square feet, the smaller of Food Lion's two standard-size stores. The larger stores are 37,000 square feet. The Taneytown store will sell over-the-counter drugs, but will not have a pharmacy, Nanh said.

"We're a little nervous," said Kim Coyle, manager of The Liquor Barn at Taneytown Shopping Center.

Spillover effect

Revco drew people who bought items at several stores in the center, she said.

Coyle said the merchants have been told the shopping center will be renovated, but have heard nothing about whether the owner, Conewago Contractors Inc. of Hanover, Pa., has a prospective tenant to replace Revco.

"We're just hoping they're aggressive," she said.

Debbie Martin, owner of Hair Talk, said any vacancy in a shopping center affects all tenants.

"It's very common for my customers to ask how long the wait is" because they have a few errands to run in the shopping center, she said.

Allen Smith, president of Conewago Contractors, did not return repeated telephone calls.

CVS plans to rename the 2,600 Revco stores and remodel some of them.

The site plan submitted for Taneytown planning commission review shows a 10,125-square-foot pharmacy with a convenience food store and a drive-through window for prescription pickup. The store is CVS' standard size for a freestanding store, Ferestein said.

The pharmacy and Food Lion entrances will be off Chevro Drive, though both buildings will be visible from East Baltimore Street.

Pub Date: 9/04/97

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