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Walgreen plans to expand area produce stores

Walgreen Co. said Wednesday that by the end of 2013, it plans to have nearly 50 Chicago drugstores with large offerings of fresh fruit and vegetables and other groceries.

The nation's largest drugstore chain plans to open the stores in communities that don't have many options for fresh produce. It also plans to remodel many of its 142 locations in the city and open at least five new stores.

It said the plans will add around 600 jobs, half of which will come from the new and remodeled stores, and half from greater office space for e-commerce, information technology, and other areas.

The Deerfield, Ill., company remodeled 10 stores in 2010, adding about 750 new food items like fresh fruit and vegetables, frozen meats and fish, pasta, rice, beans, eggs, and whole grain cereal. It currently has 11 of those stores in Chicago. Walgreen said it will approximately double the number of locations in 2012 and do the same in 2013.

Walgreen is also expanding the grocery sections of about 30 stores in San Francisco and is offering more food at 12 of its New York-based Duane Reade locations. Competitor Rite Aid Corp. is also experimenting with stores that sell more groceries and fewer health and beauty products. Rite Aid is currently running 10 Save-A-Lot Food Stores/Rite Aid Pharmacy stores in South Carolina.

Wal-Mart Stores Inc. is also making a push in urban areas, planning Walmart Express stores about the size of a large drugstore that will stock groceries, including produce, and general merchandise.

Walgreen said it has about 4,500 employees in Chicago. As of Aug. 31, the end of its latest fiscal year, it had about 244,000 total employees. It runs 7,715 stores.

In afternoon trading, Walgreen stock gained 26 cents to $41.85.