Walgreen Co. last week announced it would slow its pace of opening new stores, but the adjustment won't affect the company's expansion plans in Hawai'i.

The nation's largest drugstore chain opened its first Hawai'i store last November on Ke'eaumoku Street, and expects to open two more stores in Kane'ohe and Kailua in late November or early December, followed by two more stores in Kalihi and Lahaina, Maui, early next year.

The upcoming group of Walgreens store openings will include the company's first stores in Hawai'i with drive-through pharmacy service, a feature of most Walgreens stores.

Walgreens previously said it envisioned as many as 30 or 40 stores in Hawai'i over the long-term, and anticipated that 10 stores could be opened by mid-2009.

Last week, Walgreens said it would trim companywide store openings from a nearly 9 percent annual growth rate to 8 percent next fiscal year, 6 percent in fiscal 2010 and 5 percent in fiscal 2011 and after.

The revised growth translates to about 500 new stores this fiscal year ending Aug. 31, followed by new store totals of 495, 425 and 365 in the next three fiscal years, respectively.

The reduction would save Walgreens $500 million in new-store investments over the next three fiscal years, and is being implemented to improve returns on investments and shareholder value for the Deerfield, Ill.-based retailer, which has about 6,300 stores.

Walgreens spokesman Michael Polzin yesterday said there wouldn't be any change in the company's Hawai'i expansion effort, which is largely dependent on finding suitable real estate.

"We're going to continue to be looking for store sites as actively as we have been," he said.

Hawai'i is a unique market for Walgreens where the retailer is trying to establish enough stores to gain operating efficiencies in competition with market leader Longs Drug Stores.

According to Walgreens, Hawai'i is the last of the biggest 100 U.S. markets with only one major drugstore chain, making the state a prime growth area.

Longs, which is based in California but has operated stores in Hawai'i since 1954, hasn't idly been watching Walgreens acquire new store locations.

Recently, Longs has been acquiring small pharmacies and converting them into Longs pharmacies.

The retailer plans to open at least two new stores — one in Upcountry Maui and one in Pearl City at retail centers under construction.

"We have served the great customers of Hawai'i for over 50 years, and plan to continue increasing our presence in Hawai'i by opening new stores this year," Warren Bryant, chairman, president and CEO of Longs, said in a conference call with stock analysts in May. "We're pleased with our market presence and we're excited about our growth opportunities in Hawai'i."

In personnel moves, Longs last year hired local commercial real estate broker Rock Tang as director of Hawai'i real estate, and in May added someone with strong Hawai'i ties to the company's board of directors, Donna Tanoue, Bank of Hawaii vice chairwoman.

Longs has about 520 stores, including 38 in Hawai'i, and plans to open or relocate 20 to 30 stores nationally this year.