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In fact, for its 2002 fiscal year ending July, Pharmaca reported sales of $17 million from six locations. The chain had sales of some $7 million for its fiscal 2001, with two stores in operation and one store recently opened at the time.

Annual per store sales should range between $3 million and $5 million, once the store is established in its market.

The chain typically processes between 150 an d 180 prescriptions per day across all stores, the company reported. Comparitively, the average independent processes 164 prescriptions per day.

Pharmaca currently has same-store sales growth exceeding 35 percent overall, the company reported. Of the four locations with comp sales, prescription growth is averaging percent on a store-by-store basis, while front-end comp sales are averaging 45 percent growth store by store.

"Consumers needs are not being addressed by most pharmacies in today's market," Schwartz said, referring to streamlined corporate pharmacy operations staffed by efficient, albeit distant, pharmacists. Not only does Pharmaca hope to keep the neighborhood pharmacist model practiced by independents intact, where the pharmacist and patients know one another on a first-name basis, the company is hoping to provide an integrative approach to health care. "The gap between allopathic [conventional] and complementary medicine is certainly narrowing," Schwartz said. Pharmaca is bridging that gap simply through product selection and employee expertise. "That's what Pharmaca's all about," added Barry Perzow, also co-chief executive officer. "Bringing people in to teach them about healthy lifestyle, providing the data, providing practitioners and providing the appropriate product mix."

Pharmaca promises its consumers a unique shopping experience even before the front door is opened--a poster matching every employee in the store to their area of expertise is prominently displayed at the entrance. Besides coupling customer interest with the appropriate employee, the signage denotes a sense of permanence-customers can expect to develop relationships with those Pharmaca employees. Incidentally, those trained health care professionals, including certified aestheticians (beauty care specialists), homeopaths and certified herbalists, stock shelves and work cash registers.

Immediately upon entering the store, a consumer is enveloped by a pleasant pine scent. In part by design and in part by happenstance--the persona I care set is typically to the immediate left, showcasing natural, scented soaps, and the aromatherapy section is located nearby.

A key proposition for Pharmaca is education. The chain has information centers throughout the store, stocked with pamphlets and brochures on both conventional medicines and natural health remedies.

Although one-hour photo is absent from the small-box pharmacy concept, most every other core drug store category is represented with a smattering of natural product selections among the heavily promoted, more conventional consumer products. For example, in the oral care section, Tom's of Maine toothpaste is merchandised directly alongside Crest toothpaste.

The best-selling category for Pharmaca is dietary supplements, as the chain offers many "professional" brands, such as Thorne and Metagenics, that were not previously available in mass. In addition, an Rx Balance display is located on the pharmacy counter, a plexi-glass container holds eight separate vitamin and mineral combinations designed to replenish those nutrients depleted by many prescription regimens.

Pharmaca has even ventured into the private label business with three initial SKUs. The chain has two organic chocolate bars and a lip balm that's merchandised at the front counter.

In two years, the chain has mushroomed to eight stores in three markets: Denver and Boulder, Cob., Portland, Ore., Seattle and northern California. Pharmaca is planning to expand its store base by some 12 stores by year's end in those three clustered markets. In the year following, the chain is planning to expand the concept to Arizona, New Mexico, Texas or even New York. "We have already looked at a number of stores in those markets," Schwartz said. "We'll be doing a fair amount of due diligence" in scoping out the new markets, he added.

If the chain's current growth rates remain stable year-over-year and Pharmaca fully realizes its expansion plans, the chain may just crack the to p 30 list of chain drug stores by dollar volume by the end of 2004 with $117 million in sales. The cost-of-entry into the top 30 club will be $110 million by then through simple extrapolation.

Of course the chain is not without its challenges. Pharmaca's acquisition strategy, acquiring independents who have retail space approaching 5,000 square feet, ensures an established prescription base when there is one to ensure. The question is how many well-situated, 5,000-square-foot independents are left out there? And who wants to sell their business?

With 24,602 independent outlets to choose from, according to National Community Pharmacists Association data, there are thousands of opportunities available, Perzow countered.

And operating in that independent space automatically means pressure on the gross margin, which continued to decline as a percentage of sales from percent in 2000 to percent 'in 2001, according to figures from the NCPA.

It's not an altogether expensive proposition, however. Outside of the initial acquisition cost, converting the chain from its independent "look" to the retail ambiance Pharmaca holds dear only runs $200,000 to $250,000. That includes re-merchandising and resetting the pharmacy's existing front-end inventory, upgrading the fixturing and marketing the new location.