YOUNGSTOWN Low prices make Marc's No. 2 drugstore; market share expected to rise even more

The new chain in town will grow more popular with time, a professor says.
THE VINDICATOR, YOUNGSTOWN, OHIO
By DON SHILLING
VINDICATOR BUSINESS EDITOR
Marc's quickly has taken over Phar-Mor's spot as the No. 2 drugstore chain in the Mahoning Valley.
The Cleveland-based deep discount chain trails only Rite Aid in market share, according to results tabulated by Mass Market Retailer, a trade publication.
Marc's has 13 percent of the local market as it has opened in former Phar-Mor stores in Boardman and Austintown. It also has a store in Salem.
Phar-Mor had 19 percent of the market before it closed its stores last summer and went out of business.
Giant Eagle, which bought Phar-Mor's prescription files, has 10 percent of the local market, up from 9 percent a year ago.
Rite Aid seems to have benefited from Phar-Mor's closing by increasing its market share from 27 percent a year ago to 31 percent.
Day Armelli, a Marc's spokeswoman, declined to comment.
Professor's views
David Burns, a marketing professor at Youngstown State University, expects Marc's share to grow as shoppers become more familiar with the store. Marc's just opened its Boardman store in February and Austintown store in April.
"I'm surprised at how well Marc's has taken off," he said.
After spending $45 on his first trip to Marc's, Burns found out that the retailer has a knack for snagging nonpharmacy sales with its discount concept.
"I went in for sweet corn that was advertised and came out with a whole shopping cart full of items," he said.
Marc's probably has fared well because local shoppers are familiar with its deep discount concept, which was used by Phar-Mor in its early days, he said.
Mickey Monus, the Phar-Mor founder who now is in prison for improper use of company funds, patterned his chain after Marc's, which dedicates a large part of its store to a changing variety of discount-priced items.
"That's the excitement. That's what brings people in wondering, 'What will I find today,'" Burns said.
Phar-Mor struggled in recent years because it got away from this concept after Monus left, Burns said. New leaders wanted to build a chain of large drugstores, instead of deep-discount stores, he said.
Burns said he has been surprised that Marc's hasn't moved into Liberty. The lack of retail stores along lower Belmont Avenue offers an opportunity for Marc's, he said.
Marc's has the No. 1 market share in the Canton-Massillon market and is No. 2 in both Akron and Cleveland, Mass Market Retailers said. CVS leads the market in both Akron and Cleveland.
shilling@vindy.com