Walgreens would be very interested in Rite Aid's SoCal stores...it would give them greater presence in the heart of Los Angeles and in San Diego (WAG is mostly in the outer suburbs of those cities).krogerclerk wrote:For the last two years, Rite Aid has been cited as a company not likely to survive the year. Thus far they have survived, but the decision to stop new store construction does not bode well. RAD stock price is an all time low and I'm sure the banks are refusing to finance new store construction.
The demise of RAD would eliminate a viable 3rd drug store chain, and more to the advantage of CVS and Walgreens than any independents and regional drug chains. WAGS and CVS would lose a major competitor in several markets as well as be the likely buyers for closed locations. This would be a bigger boon for WAGS than CVS which is digesting Longs. WAGS growth has primarily been organic, with the exception of Happy Harry's, Duane Reed, and the occasional independent, but has a less concentrated presence in both the West and East coast than CVS or RAD, allowing them to become a major player on both coasts.
CVS would probably be interested in Rite Aid's Colorado stores as an entry into the Denver market.