Balancing transformation with tradition
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Inside the digital transformation of America’s oldest family-owned drug store brand
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BARTELL DRUGS
Kari Escobedo, SVP, IT at Bartell Drugs, shares her business insights and plans for the digital transformation of America’s oldest familyowned pharmacy brand
D
igital transformation is change, and in the world of the enterprise, change is unrelenting. From a single location
purchased by 21-year-old pharmacist George H Bartell Sr in 1890, Bartell Drugs has become the 04
United States’ oldest family-owned drugstore chain – an iconic brand in the Pacific Northwest. Achieving constancy and longevity through a great depression, a great recession, two world wars and myriad upheavals that mark almost 130 years of history, the brand is an American success story. Walking the line between the traditional and the futuristic, while always delivering the highest quality of service to its customers, Bartell’s is making strides towards a bold digital future. “We want to bring Bartell’s into the modern digital world and ensure that its brand and products will still be here serving our communities a hundred years from now,” says Kari Escobedo, Senior Vice President (SVP) of IT at Bartell’s. Escobedo, along with new CEO Kathi Lentzsch and other Sr Executives are
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BARTELL DRUGS
working to build teams to shape Bartell’s digital transformation strategy. This approach will carry the company into the fourth industrial revolution and, hopefully, into the 22nd century. Prior to joining the company in July 2018, Escobedo spent over a decade working for some of the Pacific Northwest’s largest, most game-changing companies. From years of growing up in a military household to experiences at Starbucks, Microsoft, T-Mobile, and Kaiser Permanente of WA, she shares how the transformation values of continually driving innovation,
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promoting community and diversity, and
“ We want to bring Bartell’s into the modern world and ensure that its brand and products will still be here in another hundred years” — Kari Escobedo, IT, Bartell Drugs
championing adaptability are informing Bartell’s digital transformation. “I grew up in the Marine Corps, moving around every couple of years. I’ve lived all over the country and parts of the world – that’s what you do as a military child,” recalls Escobedo. “Every two to three years, we would pick up and move to another state. My siblings and I got dropped into a whole new school on a regular basis.” Escobedo credits her frequent relocations into new cities, cultures and social dynamics at an early age for a trait she has found invaluable
CLICK TO WATCH : ‘#BETTERWITHBARTELLS: DID YOU KNOW?’ 07 throughout her career: adaptability.
into its business model for a long time;
“I got very good at finding my way
each of the brand’s 68 locations is
and finding things about myself that
uniquely tailored to its neighborhood
integrate well into new situations,”
and customer base. “Our stores fit into
she explains. In her career, she quickly
their neighborhoods architecturally,
found: “You get really good at reading
but also about 30% of the products we
the organization, the culture, seeing
stock are local to the Pacific Northwest,”
opportunities and being able to stand
Escobedo explains. “There are some
back and say: ‘Where do I fit in this
stores that are partnered with the Post
picture? Where I can use what I do best
Office, because that’s something their
to help the company?’ One thing that
neighborhoods were lacking when they
I lean on a lot is my adaptability coming
opened.” Other stores have everything
into new organizations.”
from growler stations and espresso
Adapting to different environments is a skill that Bartell’s has integrated
bars to hand-dipped ice cream stands and product assortments for office w w w.ba r te l l dru g s . com
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rs e t r po ugs p Su ll Dr d u rte o r P Ba of
workers on lunch breaks. “The makeup of the product selection is focused on what customers need versus only what we want to sell them,” she says. “It differentiates us from some of our big box competitors.” Bartell’s also adapts its instore experience so all feel welcome. “There was a conscious decision made to have shorter fixtures in all stores. With a lower profile, our stores feel
“ I got very good at finding my way, and finding things about myself that integrate well into new situations” — Kari Escobedo, IT, Bartell Drugs
E XE CU T I VE PRO FI LE
Kari Escobedo, SVP, IT Kari Escobedo is a business executive with 20+ years of leadership experience serving global F500 companies in technology, healthcare, telecoms, and retail. She is a change leader specializing in company technology transformations, including digital experience, product dev, and M&A. Kari joined Bartell Drugs in mid-2018 to help positively impact the company thru technology. Prior to Bartell Drugs, Kari joined Kaiser Permanente 2015 leading the Ent & Digital Services areas that include UX/CX, Digital & Mobile for KPWA. Formerly VP, Ent Sys Dev for T-Mobile, Kari led the technology team responsible for the development and delivery of solutions for the Customer Retail & Enterprise Systems that supported the T-Mobile business transformation. Before joining T-Mobile, Kari was the Director of Information Management and CISO for Starbucks as well as teams that supported ERP, Employee Portal systems. Before Starbucks, Kari held leadership positions at Microsoft, running it’s Enterprise Systems teams.
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BARTELL DRUGS
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1890
Year founded
1,700
Approximate number of employees
HQ
Seattle, Washington
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BARTELL DRUGS
more open. You can see across the store and find people; it’s more inviting.” A feeling of welcome and personalized experience is key to the way Bartell’s does business. Escobedo’s priority is to harness the power of digital transformation to provide the company with more ways to reach its customers, while honoring the traditional heritage established by the Bartell family. “In Seattle, we have a pretty tech-savvy customer base, but we also have a customer base that really appreciates and demands personalization,” she 12
explains. “They need to know you and you need to know them as a customer. That’s just part of the relationship-driven environment that we have in the Northwest. It’s what Bartell’s is known for.” Escobedo’s leadership style is uniquely suited for Bartell’s transformation. “I love to come in and build sustainable change,” she enthuses, recalling her time at telecom giant T-Mobile and Starbucks. Escobedo constantly asks herself: “How do we keep driving innovation? You can find possibilities everywhere. You don’t have to be introducing new products that nobody’s seen before, but you need to be innovating for your customers.”
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CLICK TO WATCH : ‘#LOVINGLOCAL: JOE CHOCOLATES’ 15 In terms of e-commerce, Bartell’s has
On the pharmacy side, Escobedo and
taken a very customer centric ap-
Bartell’s are working in conjunction
proach, working in conjunction with
with Californian start-up, NimbleRx,
Amazon Prime Now and several other
to provide delivery services for pre-
well-known last-mile shopping delivery
scriptions and commonly purchased
services on same day delivery of
OTC products. “It allows us to really
non-pharmacy items. “We’re channel
fulfil a strategy built around making it
agnostic right now,” she explains.
super easy for customers to buy things
“Whichever company you buy our
from Bartell’s when and where they
products through, the strategy we’ve
want them,” she explains.
put together is focused on giving our
While many things are changing
customer’s choice and the opportunity
around them, Escobedo’s team relies
to get our products in the easiest way
on her ability to build excitement and to
for them – we want to be where they
lead by example. “My job is to help my
shop versus making them come to us.”
teams and business partners succeed w w w.ba r te l l dru g s . com
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– because if they are successful, then
and vendors that will champion for
we all win,” she says. “It is critical to be
Bartell’s and their goals.
transparent and to clearly define
Escobedo is embracing technologi-
expectations for myself and my teams.
cal wins of every size. She uses small
I hold them accountable and they hold
changes like augmenting legacy
me accountable. With that comes
point-of-sale systems with user-friend-
mutual trust and a comfortability that
ly mobile-driven solutions to promote a
fits well in our organization,” said
culture that is accepting of and
Escobedo. This isn’t limited to the
enthusiastic about more radical
teams she leads. With vast knowledge
transformations. “Many of our employ-
and relationships in the technology
ees have been at Bartell’s for a long
world, and the experts in that space,
time and they love this company. That
Escobedo chooses the right partners
means, as we move to adopt and leverage some of these technologies,
“ Customers need to know you and you need to know them. That’s just part of the relationship-driven environment that we have in the Northwest, and it’s what Bartell’s is known for” — Kari Escobedo, IT, Bartell Drugs w w w.ba r te l l dru g s . com
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BARTELL DRUGS
Bartell – Supporting local brands
Joe Chocolate Co. specializes in crafting delicious, handmade chocolate, infused with locallyroasted coffee from Lighthouse Roasters. Our functional chocolate gives you the energy you need from ingredients you love. 18
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Pacifica Beauty: Pacifica’s products are vegan and
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An iconic brand in the Seattlearea for more than 30 years, Talking Rain is a Washingtonbased beverage company situated in the foothills of the Cascade Mountains. Talking Rain’s sustainable growth is attributed to the company’s ability to stay true to their
vision and heritage, while continually improving and innovating their products.
Wet Noses Dog Treats provide truly natural dog treats and food without a negative impact on the environment. They offer choices to pet parents that they can feel good about through our conscientious and food safety forward formulation, sourcing and production processes. They serve all their customers by exceeding their expectations by always putting them first.
The history of MarketSpice can be traced back to a small tea and spice shop established in Seattle’s historic Pike Place Market in 1911. Over the years, we have offered our customers
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BARTELL DRUGS
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“ It’s interesting to be able to really change and move where our customers expect us to be, but then still embrace and celebrate the long history and deep roots of Bartell’s” — Kari Escobedo, IT, Bartell Drugs
there’s a significant change management component we have to take into consideration,” Escobedo explains. “AI and machine learning. Those are big, scary words for many traditional retailers.” Currently, she is pursuing several proof-of-concept tests of predictive analytics and automation, which she hopes will help to demystify the functionality and experience of incorporating leading-edge technology for Bartell’s team. Looking forward, Escobedo relishes the chance to continue balancing
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transformation and tradition. “It’s
customers.” For the first 129 years
interesting to be able to really change
of its existence, Bartell Drugs was
and move where our customers expect
shaped by a world that went from
us to be, but still embrace and celebrate
steam to the moon to the internet.
the long history and deep roots of
The next 129 years of Bartell Drugs’
Bartell’s,” she says. “We’ve had some
history will be shaped by the initiatives
great accomplishments over the last
that Escobedo and her team pursue
six months. I’m super excited about the
over the next few years.
shift in thinking and the ideas that are coming from my technology team. Through the rest of this year, we are building a great foundation to continue to launch a more enhanced and personalized digital experience for our w w w.ba r te l l dru g s . com
4025 Delridge Way SW, Seattle, Washington 98106, US T 1.877.227.8355 www.bartelldrugs.com