As some of the last customers filed in and out of Penny Wise Drugs in downtown Hollister this week, Jeanne Rosati recalled spending her childhood at the store. As a clear contrast of the times, she remembered being a kid, and running the ribbon-making machine used for wrapping gifts.
“It’s been a good run,” the pharmacist said from behind the counter Tuesday, “and we’ve enjoyed talking to the people.”
Locals have been patronizing Penny Wise with a sense of nostalgia in recent weeks since the iconic Hollister business announced its coming closure after 80 years in business, the last 65 under the Rosati family. Customers since New Year’s Day have been saying their good-byes and taking advantage of an out-of-business sale running through the establishment’s final day, Sunday, with 60 percent off all general items such as gifts, puzzles, frames and a slew of novelty knick-knacks, along with 30 percent off over-the-counter pharmacy goods.
Rapidly changing consumer habits and major retailers have made it especially difficult for Penny Wise and other small, family businesses to survive. Stephen Rosati, an owner and pharmacist, said his family decided to close due to the timing of an offer from Walgreens – which opened in November on Tres Pinos Road – to purchase the Penny Wise prescriptions. Along with decreased foot traffic in downtown Hollister and pains with the insurance industry, Rosati said, there was another number-related factor aside from Walgreens’ offer.
“Eight pharmacies in Hollister is a large number of pharmacies in Hollister,” he said, adding that he believes two other chain pharmacies may move here as well. “It just seemed like the right time for us to take advantage of the situation.”
After 65 years trying to keep a carefully selected offering of items stocked, the shelves went barer and barer through the week. It didn’t keep Joan Rosati from cheerfully helping a young family from behind the store’s glass counter. After selling a miniature train for $1.49 to a young girl, the co-owner and bookkeeper marveled how the Rosatis have had four generations of customers come through the doors.
The Rosati family’s ownership of the Penny Wise business started in 1948, when Joe and Marie Rosati bought the business from a man named Andrew Kallstead. Joe Rosati previously worked at the store in high school and college as a stock and delivery boy.
As noted by Stephen Rosati in a narrative of the store’s history provided to the Free Lance, the family did a major remodeling to the building in 1962. In 1966, after Joan Rosati graduated from college, she returned to the business as a buyer and bookkeeper. In 1974, Stephen Rosati joined as a pharmacist, followed by sister Jeanne in 1980 as a pharmacist as well.
In 1979, the Rosatis took the opportunity to expand when the old Rasco’s – known as the “Dime Store” – shut down at 549 San Benito St.
Joe and Marie Rosati bought the building, moved from the only other location at 525 San Benito St., and increased the floor space from 1,200 square feet to 5,400 square feet.
“It was a major decision back in 1979 when we talked about this at the family level,” Stephen Rosati said. “It provided us a lot more space to lay out our merchandise. We never realized how much merchandise we had in our own store.”
Stephen Rosati, naturally, has been sentimental about the closure. He remembered going to a lot of pharmacy conventions and gift shows with his parents to places like Oakland and Fresno. His late father was even involved in pharmacy politics. At one time, Joe Rosati was president of the Northern California Pharmaceutical Association.
“We all grew up in the business,” Stephen Rosati said, noting that a brother ended up pursuing a business career and is now employed at IBM.
In 1998, Joan and Stephen Rosati purchased the business from their parents. In the 15 years since then, the store has struggled with consumer changes nationally and locally, with countless other choices for gifts, an influx of corporate pharmacies and countless less-expensive options on the Internet. With cost reductions and a strong base of loyal customers, though, they found a way to survive, even through the latest recession. A store that once employed the family members and seven other employees on the floor had been reduced, by necessity, and the family members were the only ones left working there at the end.
The Rosatis shared memories of the store’s history, but they also continually asked to thank the customers.
“When we talk about so many decades with the same family and the same customers, it’s like family down there,” Stephen Rosati said, seated behind old newspaper clippings laid out showing a snippet of the store’s history. “That is what makes going to work everyday enjoyable – knowing people, interacting.”
With such an attitude, the store built a reputation as having a supreme emphasis on customer service. If someone walked into Penny Wise, it wouldn’t take long for an employee to offer a hand or advice.
It might be the reason why Penny Wise lasted so long. It ended up far out-living the three other pharmacies that competed against one another – all within the same block on San Benito Street – in the early days of Penny Wise.
“There were at one point a good number of pharmacies. There’s been plenty of business for the pharmacies in Hollister,” Stephen Rosati said. “The choice for us was there to take, so we took this choice.”
TIMELINE OF EVENTS
1935: Harlan LeGro establishes Penny Wise at 525 San Benito St.
1948: Joe and Marie Rosati buy Penny Wise
1979: Penny Wise expands, moves to 549 San Benito St.
1998: Rosati siblings buy business from parents
Jan. 12, 2014: Penny Wise to close
