SIOUX FALLS, S.D. — Since 1942, Midwestern values have helped family-owned Lewis Drug to grow during tough times and boom times, according to Mark Griffin, the company’s president and chief executive officer. Reflecting on the 80th anniversary of the successful company, Griffin considers a range of challenges the company has overcome, from national chains establishing a presence in the communities Lewis serves to internet giant Amazon’s move into the pharmaceutical category.

Mark Griffin

“People enjoy being able to connect directly and safely with trusted drug store professionals, and to see and touch other merchandise as they shop,” Griffin observes. “Our locations are large enough to carry the variety and volume of goods that shoppers need, yet they’re not so large as to lose convenience and overwhelm shoppers. Those traits, along with the personal touch we offer, have been an essential component of the eight-decade success of Lewis.”

Today, Lewis Drug serves customers in South Dakota, Iowa and Minnesota with stores that offer quality prescription and over-the-counter drugs in well-stocked formats, with comprehensive and sophisticated front ends featuring specialty items and gifts in addition to an assortment of products ranging from beauty, grocery, wine and spirits to items for pets. That spirit of innovation and convenience was evident in the first Lewis store — which Griffin’s father, John, helped to launch in downtown Sioux Falls in February 1942.

“With that initial store, a 7,000-square-foot former Skaggs Groceries, my father and his partners introduced the self-service concept to the Midwest,” recalls Griffin. “For the first time, it gave shoppers the convenience of making their own decisions about merchandise, while speeding the purchase and checkout processes. It was a big hit.”

Innovations quickly followed, from small but important ones — like installing a popcorn-making machine to attract customers who would stop by to pick up a competitively priced snack on their way to the town’s movie theater across the street — to big ideas, like building a second, 35,000-square-foot store on a cornfield on the edge of town and stocking it with a variety of general merchandise in addition to drugs and basics.

“Back then, drug stores were only expected to carry laundry, bath soap and a few food essentials in the front end,” Griffin says. “Competitors were skeptical, but the concept took off, since expanding the categories made the trip more convenient for consumers. Eventually, we enlarged that second store to some 60,000 square feet and stocked it with fishing boats, cameras and other goods too.”

That second store served as a prototype as the company opened more locations — but the management team maintained a flexibility that continues to mark Lewis Drug’s operations. “My father and his team recognized the value of going large, but did not want to lock themselves into a format,” Griffin notes. He learned from their example, having worked in the stores since age nine. “I worked in every department, so I gained a thorough understanding of Lewis Drug operations.”

After graduating from Arizona State University with a bachelor’s degree in business, Griffin supplemented his retail experience with a stint at a department store in Tucson, Ariz. From there he moved to an Atlanta company that supplied Lewis Drug with flower bulbs. Griffin later worked as a bond broker at the financial services holding company AG Edwards before returning to Lewis Drug in 1978 as vice president of inventory control.

“I actually took a pay cut when I rejoined Lewis Drug, but I saw the move as a long-term opportunity,” he says. “I had the privilege of working closely with my father — he involved me with key personnel and other decisions — for seven years until he passed away.”

In 1986, Griffin followed in the footsteps of his father and assumed the top roles of president and CEO. His tenure to date has been distinguished by a combination of tradition and continued innovation.

“One of the changes I made was to expand in a more aggressive, but still methodical, manner,” he observes. “When I took over the reins, we had five stores, but today we have a total of 60 locations in operation or under construction.”

Griffin also implemented a “guerilla retailing” strategy that leverages Lewis Drug’s nimble smaller-retailer approach with the economies of scale traditionally associated with large companies.

One example is the close relationship, launched in 1998, between Lewis Drug and Sanford Health, South Dakota’s leading medical group and one of the largest medical providers in the Upper Midwest. Under the partnership, clinics are available — adjacent to some Lewis store sites and within others — that provide Sanford patients with prescription drugs and other drug store-delivered health care services.

“We’re not traditional,” says Griffin, adding that this approach enables Lewis Drug to thrive even when large competitors move in — physically or virtually. “We’ve maintained and expanded our customer base despite the presence of large drug chains.”

Amazon’s move into the pharmacy space — the giant is building a five-story, approximately 3 million-square-foot fulfillment center in the northwest edge of Sioux Falls — made everyone sit up and take notice, but “we’ve still been able to retain our existing customers while attracting new ones,” he says. “While we’re large enough to obtain competitive pricing from suppliers, we’re also nimble enough to establish and maintain a footprint in locations that other people cannot. In 2021 we closed out a record year, and we anticipate a vibrant 2022.”

Griffin is also pleased that a third-generation family member is stepping up to the plate. “My daughter, Nikki, is Lewis’ corporate vice president,” he says with evident pride. “She’s already made her mark by designing a store we opened in the revitalized Sioux Falls downtown.”

That location, a 6,006-square-foot “right-sized” building constructed with such reclaimed materials as barn wood, features a Sanford Acute Care Clinic, and the rooftop is home to an indoor/outdoor patio expansion of the PAve nightclub next door.

“At Lewis Drug, associates and partners all work together as a team,” Griffin adds. “Companies that don’t work together and create change will fall. We will continue to grow.”