Sony Hocklander

News-Leader

Dillons Stores announced Tuesday that it will exit the Springfield market in January. Employees at four Springfield stores were told the news at 8 a.m., according to Dillons spokewoman Sheila Lowrie.

It was also announced that Price Cutter has entered into a real estate agreement to acquire all four Dillons stores and equipment in Springfield. The stores affected are at 1707 W. Battlefield Road, 1831 W. Kearney St., 1260 St. Louis St. and 2843 E. Sunshine St.

Beginning immediately, hours of operation at all Dillons locations in Springfield are 6 a.m.-9 p.m. daily.

Lowrie told the News-Leader "we expect all of our associates to maintain employment with Dillons through January 2015."

However, pharmacies at all four stores will close immediately, she said. Dillons Pharmacy customers will be able to find their transferred prescriptions at nearby Walgreens locations.

Walgreens purchased the prescription files from Dillons, a common practice for pharmacies when one closes, said Walgreens spokesman Jim Graham. "They often negotiate the sale of their prescription files to another chain or pharmacy," he explained, adding that the transition appeared to be going smoothly.

When Mike Dickey went to his neighborhood Dillons on St. Louis Street on Tuesday afternoon to pick up a prescription, he was shocked to find the pharmacy gate down and staffers he has come to know gone. Instead, about half a dozen strangers appeared to be conducting inventory. He was told to get his prescription filled at the Walgreens at St. Louis and National Avenue.

Mike's wife, Diane Dickey, said she and her husband were dismayed to know they can't do business with Dillons employees. "As long as Dillons has been here, we've worked with them and we just loved the pharmacist," she said.

Diane went to Walgreens for her husband. She said the wait wasn't bad and Walgreens staff were cooperative. "They were very nice at Walgreens. I just don't know any of them," she said. "We are going to incredibly miss those people we have worked with over at Dillons."

Lowrie said Dillons is hosting meetings with employees in each store to share information about next steps, and the company has been in contact with the Division of Workforce Development's Missouri Dislocated Workers unit.

"We know they will be in our stores over the next few weeks," she said.

Lowrie said "the decision to exit Springfield is a regrettable, but necessary step following the regular assessment of our supermarket operations."

A lot goes into those decisions, she said, and the number of grocery stores in Springfield was one of many factors they evaluated.

Jim Hertel, a grocery industry analyst with the Illinois-based Willard Bishop consulting firm, said, "I think you certainly can reach a saturation point. ... We probably are at a point where we have more stores nationally than you need to supply the demand there."

It could also be "that they are thinking to themselves that there may be a better opportunities. There may be a logistic reason," he said.

According to Donna Pirotte, speaking for the locally owned Price Cutter, CEO Erick Taylor and his team are assessing the acquisitions for developing new store concepts and no decisions have been made, including whether the locations will become Price Cutter stores or something else.

Pirotte shared this statement by Taylor regarding his plans for the Dillons stores:

"We are currently assessing new store concepts, conducting market research and evaluating community needs. At this time no decisions have been made. Our priority is to create what is most beneficial to our community, our customers and our employees."

Regarding the reason for Dillons closing its stores, Taylor said this:

"Dillons announcement to exit all four Springfield locations in January 2015 is disappointing news. Springfield is a very competitive market and has recently experienced rapid growth in the grocery retail market. Within two years, our community has acquired several new grocery stores including several Walmart Neighborhood stores and a Hy-Vee.

"Once Dillons approached us of their intent to vacate the Springfield market, as President of Price Cutter, I felt it was my responsibility to our 2,600 employees to keep our company looking forward and explore the opportunity to purchase the Dillons real estate."

Additional terms of the agreement were not disclosed.

Price Cutter, headquartered in Springfield, is a local, employee-owned company that operates 48 stores in Missouri, Oklahoma and Kansas.

Dillon Stores, headquartered in Hutchinson, Kansas, is a division of The Kroger Company, one of the nation's largest retail grocery chains. Dillon Stores operates 86 stores in Kansas, Missouri and Nebraska and employs more than 12,000 people.

Pharmacy transfers

Dillons Pharmacy customers will find their prescriptions transferred to the following Walgreens, effective immediately.

• Dillons Pharmacy on Battlefield will transfer to Walgreens #3688, 2951 S. Campbell Ave.; Phone: (417) 890-7924; Fax: (417) 883-4910

• Dillons Pharmacy on Kearney will transfer to Walgreens #5288, 1525 W. Kearney St.; Phone: (417) 862-4099, Fax: (417) 862-6209

• Dillons Pharmacy on East St. Louis will transfer to Walgreens #5287, 1155 St. Louis St. Phone: (417) 862-5302, Fax: (417) 862-4548

• Dillons Pharmacy on East Sunshine will transfer to Walgreens #3690; 2640 E. Sunshine St., Phone: (417) 885-1274 , Fax: (417) 883-7089