The grand expansion of the Phoenix Drug store chain last June to a spacious home at the new Waterfront development on Pitts Bay Road has crumbled.

George Grundmuller, president and CEO of the Phoenix Stores Ltd., yesterday admitted that he has been forced to shut down the shop because of lack of business.

The new store will close at the end of October having only opened last June.

"There is not enough traffic going through there,'' said Mr. Grundmuller.

"We have found the business is just not a viable location.'' The Phoenix Stores moved their Bermuda Pharmacy operation to huge 4,200 square foot space in the Waterfront development on June 15 last year but was forced to scale back this September to only half the space.

The original move was made with much excitement from the company.

"It is so stimulating to be part of this development,'' Mr. Grundmuller said last year.

"It's not just about us but also the Miles Market are here and eventually 500 people will work in the complex.'' The erection of the ACE and XL buildings together with the Waterfront development were the main factors attracting the Phoenix to the new site.

But Mr. Grundmuller had also pointed out that there was a large residential clientele from Pitts Bay Road, Fairylands and Spanish Point to cater to.

Yesterday he admitted that lack of parking may have put off some customers from coming to the new store.

But in addition, Mr. Grundmuller said that the company had saturated the market in that area.

"With the recent purchase of the Clarendon Pharmacy we find we have three pharmacies in very close proximity,'' he said.

"It is a business decision to close Bermuda Pharmacy as it simply does not see enough traffic.'' No staff will be lost in the closure.

"We have been able to absorb everyone into the other stores,'' said Mr.

Grundmuller.

"And even the evening staff will simply move to Clarendon, so it has worked out beautifully''.

Photos by Nigel Richardson Changing times Pictured are the original spacious Bermuda Pharmacy (above) last June and, on the right, the scaled back smaller version that operates now at the Waterfront on Pitts Bay Road.