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Liberal News and Commentary
Sunday, April 15, 2001

End the Glut of Pharmacies in Buffalo Grove

      The Village Board of Trustees in my home town of Buffalo Grove recently voted to approve the building of a CVS Pharmacy on the northeast corner of Dundee and Buffalo Grove Roads.  The vote was controversial because there is already a glut of big pharmacies in our town of about 43,000 residents, including several Walgreen's, several Osco Drug stores (Jewel-Osco is part Albertson's), and pharmacies in Dominick's Finer Foods (Safeway), and Cub Foods (SuperValu), plus independents such as Mark Drugs, as well as pharmacies in Wal-Mart and Sam's Club just across the border in Wheeling.

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      When the village held hearings about whether to add yet another pharmacy to the town, I testified against it.  Do we really need yet another big-box drug store in Buffalo Grove?  We're like a one-trick pony, where all we know how to do is strip malls and drug stores.  Can't we add another type of store, like a big computer store, a big book store or something else, anything else, that we don't already have ten of?

      It reminds me of how my daughter always asks me to buy her a stuffed animal for her every time we go shopping.  I usually tell her, "No."  Sometimes I say, "Yes," to another stuffed animal, but only on rare occasions and for a specific reason, such as a reward for outstanding conduct.  She already has about a hundred of them, plus what her 19-year-old brother doesn't sleep with.  We have other needs for our limited financial resources besides the purchase of more of what we already have too many of.  Similarly, this community has other needs than just having a drug store, bank, gas station or grocery store on every prime corner in town.

      The reason for all the drug stores is "me-too" marketing.  "Their" job is to find a profitable use for a business site.  "Our" job is to promote competition while ensuring a variety of services (uses).  "They" see big-box pharmacies throughout town making money and say, "Me, too!  That  works in Buffalo Grove, so let's copy that model and then we, too, will have something that works."  What we then get stuck with is a glut of copy-cat uses without variety.  The glut then results in an oversupply, where nobody makes money and inventory gets stale (doesn't turn over) because there are too many places, all with the same stuff.  The key, then, is to have enough competition to keep prices reasonable, but not so many of one type that
 a)  nobody can make money and
 b)  other uses are crowded out.
The glut is what has happened with regards to grocery stores.  We allowed so many to be built so close to each other that Wild Oats Market went out of business, the Eagle Foods store in the Town Center went out of business, and Cub Foods, also in the Town Center, is certainly doomed.

      Even if we can sustain that many pharmacies with marginal profitability,
other desirable uses are being crowded out.

      Village officials have taken the position that the a pharmacy is a permitted use under the zoning for the land.  If I was on the Village Board, I would have tried much harder to discourage the use of the land for yet another pharmacy and sought to generate a different use for the property.  I hope that, in your town, you don't repeat the mistakes of Buffalo Grove officials by allowing a few business uses to be repeated over and over to the point that many other desirable uses are crowded out.

 

         Rob Sherman          

P. O. Box 7410
Buffalo Grove, IL  60089-7410

A post office box is used because
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Telephone:  (847) 870-0700

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