OPERATIONS

Walgreens launches recovery efforts, 500+ stores still closed

BY Katherine Boccaccio

Deerfield, Ill. — Walgreens said Tuesday that it is beginning its recovery efforts in the wake of Hurricane Sandy. The retailer said that it is working to provide its stores with what they need to again serve customers in areas impacted by the storm.

By noon ET on Tuesday, the number of Walgreens stores closed dropped to 530 with more re-opening by the hour, from a peak of about 750 stores closed during the height of the storm.

Stores that are still closed are primarily due to evacuations, power outages and staff transportation issues, said Walgreens. Approximately 300 stores were without power. The company currently has reports of 10 stores with light to moderate damage, but that could increase as access is gained to more locations.

Walgreens said it is communicating with team members through the company intranet, its Security Operations Center, conference calls and individual calls. There have been no reports of Walgreens team member injuries; however many suffered personal property damage due to flooding and other weather-related issues, said Walgreens.

The retailer is in contact with the American Red Cross to offer assistance to first responders and to local communities impacted by the storm. Walgreens also anticipates requests in the coming days from relief agencies, charitable organizations and emergency management services.

Walgreens said it expects closed stores to resume normal hours most quickly in Virginia, Delaware, Maryland, Connecticut, Rhode Island and Massachusetts. More severe infrastructure issues may cause longer delays in West Virginia, New Jersey, Pennsylvania and New York City. In advance of the storm, Walgreens secured more than 180 electric generators and stationed them for deployment based on severity of need and expected length of power outage. Deployment was rapidly occurring on Tuesday and is helping to reopen stores, Walgreens said.

Walgreens distribution center at Windsor, Conn., was without electric utility power for several hours and relied on emergency generators to continue partial operation. Full power was restored on Tuesday morning and the facility is expected to resume normal operation within hours.

A Maspeth, N.Y., distribution facility that serves Duane Reade stores has full power and is working to assist staff trying to get to work in the absence of mass transit service. Road and bridge closures are causing problems for delivery trucks in the New York metropolitan area.

Another distribution center in Bethlehem, Penn., was without power as of noon ET, but the building is intact. A smaller distribution facility in Nazareth, Penn., sustained roof damage and flooding, which will require repairs before resuming operations. Where distribution centers are affected by the hurricane, Walgreens said it will shift to alternate centers to supply medicines, water and other essentials. It also has relationships with third-party suppliers who can fill gaps in distribution.

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Kellogg donates $500K to hurricane relief efforts

BY CSA STAFF

BATTLE CREEK, Mich. — Kellogg has donated $500,000 to support Hurricane Sandy relief efforts. The donation includes a $250,000 cash contribution from Kellogg’s Corporate Citizenship Fund (KCCF) to the American Red Cross and $250,000 in food to Feeding America, the nation’s largest hunger-relief charity.

"Our thoughts are with all those impacted by Hurricane Sandy as they manage through this difficult time," said Kris Charles, VP global communications and philanthropy for Kellogg. "The Red Cross and Feeding America will be providing critical aid over the coming weeks and we want the organizations, and those affected most, to know they can count on Kellogg for help."

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Claire’s expands in South America

BY CSA STAFF

CHICAGO— Claire’s Stores has opened its first locations in Venezuela and Panama.

The Venezuelan store opened on Oct. 12 and is located in the Sambil Paraguna Mall in Punto Fijo. The Panamanian store opened on Oct. 27 and is located in the Metro Mall in the city of Panama. Both Claire’s stores are the first of their kind in each country. Claire’s Stores Inc. has partnered with Grupo David Enterprises headquartered in Panama as the single franchisee across 16 countries in Latin America. Over time, Claire’s Stores Inc. and Grupo David Enterprises expect these countries to present a minimum 100 stores market opportunity.

Claire’s Stores Inc. CEO Jim Fielding stated, "The two recent store openings in Venezuela and Panama expand our global reach to 36 countries. We look forward to opening additional stores while entering more markets with our partners at Grupo David."

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