Rite Aid, Albertsons Scrap Deal Amid Criticism Ahead of Vote
Source: Bloomberg
Rite Aid Corp. and Albertsons Cos. agreed to scrap a merger that would have helped reshape the U.S. retail and health-care industries, as opposition to the transaction increased before a shareholder vote.
While we believed in the merits of the combination with Albertsons, we have heard the views expressed by our stockholders and are committed to moving forward and executing our strategic plan as a standalone company, Rite Aid Chief Executive Officer John Standley said in a statement Wednesday.
Rite Aid canceled a special shareholders meeting scheduled for Thursday and its board is evaluating governance changes at the company. There wont be a termination fee for either side, according to the statement.
The collapse of the deal is the second time a deal has failed for Rite Aid, after its merger with Walgreens Boots Alliance Inc. last year fell apart. Retailers have been under growing pressure from online competitors, affecting grocers and the corner drugstore alike. The deal would have expanded Albertsons to help it combat companies like Amazon.com Inc. that are increasing their food offerings.
Read more: https://www.bloomberg.com/news/articles/2018-08-09/rite-aid-and-albertsons-scrap-agreement-to-merge-operations
This Rite Aid drama has just gone on and on and on. It took awhile for me to unravel but Walgreens attempted to buy the whole kit and kaboodle and that became an anti-trust issue so instead, Rite Aid sold about 1,600 stores to Walgreens. Then apparently what was left of Rite Aid was looking to merge with Albertsons (which includes their supermarkets) and per this, that has now been scrapped.
I have used Rite Aid because it had bought out Eckerd's after that chain had been merged with Thrift Drug (my original chain pharmacy) by JCPenney.
We are quickly getting to the point where there will just be "The Drug Store".
Sherman A1
(38,958 posts)There are too many mergers in my opinion and that is simply not a good thing for the consumer.
ProfessorGAC
(65,275 posts)These things are the result of talking out of both sides of their mouth.
We hear "competition, competition" but then any time two giant companies want to become one bigger one, we hear "good for business".
Then, when pressed the mantra is "it's good for the consumer" but they say that for both scenarios. It would be really hard for it to be true for both scenarios, as the merger eliminates some of the competitive incentive.
bucolic_frolic
(43,381 posts)the major competitors CVS, Walgreens, Rite Aid, Target, Walmart not to mention regional chains like Meijor, chains in supermarkets, and small town independent drug stores (where I find some of the best prices, not to mention availability of things you can no longer find.)
Every 20 miles all retailers build out a shopping mecca. Our role as consumers is to drive there and buy. Horrible life.
mahatmakanejeeves
(57,675 posts)Amazon says, "no, it isn't. We have a better idea."
bucolic_frolic
(43,381 posts)Thrift in my area were small retailers in strip malls, 40 years ago. Eckerd's was a brief entity. My local Rite Aid was just about comatose in the recession. It was an irritating novelty to be greeted at the door and asked how they could "help you find something" today, like they did in a Thom McAnn shoe store. (Many younger folks might not know the brand once had independent retail stores. How the world has changed.) Now they build stand-alone Drug Store palaces to imitate Walgreens and CVS. And they try to grab every nickel they can by selling food, snacks, beverages up front so you won't forget. Or is the food to make you sick so you need a doctor and a prescription? I never go to a drug store. Too expensive nowadays.
The one little strip mall Rite Aid in my area is still going strong. Don't know why they don't ditch it. Maybe they own the whole strip mall? It's been there more than 45 years.
BumRushDaShow
(129,704 posts)And the Buster Brown store too.
And regarding this -
I remember one of the earlier versions of a "giant" drug store around here was "Drug Emporium". That is now lost and gone away (at least in the Philly area)!
I grew up with a local independently-owned/operated pharmacy and convenience store (including selling health products, cigarettes, newspapers/magazines/paperbacks, candy, etc), literally down the street from my house "on the corner" (of an intersection). We used to talk about "going down to the drugstore to pick up <fill in the blank>". The clerk always kept a "credit book" for folks if they needed something right away and didn't have the money but would come back later and pay. My parents would send us down there with a note to hand the store clerk to buy cigarettes (with the quantity and brand on the note). Eventually that little store closed and was replaced by a series of little private businesses (mostly barbers or hair dressers).
My first intro to CVS was up in Massachusetts almost 40 years ago when I was in college. They eventually brought the chain here to Philly. Walgreens was another that I originally saw away from this city - while on work-related trips to Cincinnati... Then they came in.
Times have certainly changed!
bucolic_frolic
(43,381 posts)was instrumental in driving Kmart into bankruptcy. CVS and he were from Rhode Island, and Connecticut billionaire Eddie Lampert bought Kmart for peanuts in bankruptcy. Curious.
BumRushDaShow
(129,704 posts)Makes me really miss Woolworth's too!
wishstar
(5,272 posts)moving my prescription to an less convenient Walgreens and giving only a 2 week notice. I had asked the Rite Aide clerks earlier when they would change to Walgreens and they had expected to remain open as Rite Aid until sometime in 2019 before becoming Walgreens but instead the store was permanently closed suddenly leaving long term clerks hunting new jobs.
samplegirl
(11,513 posts)During these merger so called dealings. Came in on a tuesday and told me and I no longer had my position after Friday. Not even offered another position in a store near by nothing! Never missed work either. So here I am now still no job and still struggling to find one. Just older now and feel like a loser.
Rite aid has no loyalty to their workers!
BumRushDaShow
(129,704 posts)I could never find any info on what they would do with the Rite Aid near me. Could find nothing about whether it was one of the ones bought by Walgreens or one that would be closed. I asked the pharmacist there (particularly due to the "Wellness Card" thing) and she said that she hadn't heard anything and had been told that everything was still operating as normal at that particular store, so am guessing they were left with the main chain.
It's all been a mess.
samplegirl
(11,513 posts)Way they did me I could care less what happens to Rite Aid
BumRushDaShow
(129,704 posts)Tracer
(2,769 posts)A Rite Aid -- which I don't think was bought by Walgreens because it was recently remodeled. I shop there for the odd purchase.
A CVS -- which I almost never go into because it looks and feels dirty.
A small, locally-owned independent drugstore. They seem to be doing well (have been open for 5 or 6 years). I get my prescriptions there to support a local business.