I traveled most of western Louisiana yesterday. I have yet to see Walgreens Pharmacy signage at any Rite Aid store. I know it's coming, but it hasn't happened yet.
Albertsons to buy (what's left of) RiteAid
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Re: Albertsons to buy (what's left of) RiteAid
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Re: Albertsons to buy (what's left of) RiteAid
What overlap is there in those areas? I don't think Albertsons operates anything there. Rite Aid actually has a pretty well established presence.
Where there will be overlap is in Washington state, where if you also include the remaining Haggen stores, Albertsons will own up to four different brands in one market. (I wonder if the Rite Aid brand will appear at Haggen as well)
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Re: Albertsons to buy (what's left of) RiteAid
That's the point, there isn't. Most of the Rite Aid stores are in the Pacific states or the Northeast, where Albertsons has stores and can better integrate branding and merchandise.Super S wrote: ↑February 22nd, 2018, 5:26 pm
What overlap is there in those areas? I don't think Albertsons operates anything there. Rite Aid actually has a pretty well established presence.
Where there will be overlap is in Washington state, where if you also include the remaining Haggen stores, Albertsons will own up to four different brands in one market. (I wonder if the Rite Aid brand will appear at Haggen as well)
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Re: Albertsons to buy (what's left of) RiteAid
Growing a business doesn't happen on overlap, it happens on expansion. Could be the vehicle to expand an Albertsons-branded store into Michigan, Ohio and Western Pennsylvania. I wouldn't write anything off at this point.pseudo3d wrote: ↑February 22nd, 2018, 6:56 pmThat's the point, there isn't. Most of the Rite Aid stores are in the Pacific states or the Northeast, where Albertsons has stores and can better integrate branding and merchandise.Super S wrote: ↑February 22nd, 2018, 5:26 pm
What overlap is there in those areas? I don't think Albertsons operates anything there. Rite Aid actually has a pretty well established presence.
Where there will be overlap is in Washington state, where if you also include the remaining Haggen stores, Albertsons will own up to four different brands in one market. (I wonder if the Rite Aid brand will appear at Haggen as well)
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Re: Albertsons to buy (what's left of) RiteAid
I know, but if Albertsons was to sell off some stores to get rid of debt, those stores might be the ones. If they sold ones in the West Coast or the Northeast (after the divestments, of course) they’d only be creating competition.wnetmacman wrote: ↑February 22nd, 2018, 6:58 pm Growing a business doesn't happen on overlap, it happens on expansion. Could be the vehicle to expand an Albertsons-branded store into Michigan, Ohio and Western Pennsylvania. I wouldn't write anything off at this point.
If that was the case, then Albertsons (and/or Safeway) would be long gone. That was a legitimate fear back in 2014, as the Mervyn’s fiasco was still on everyone’s minds, and despite buying back NAI and turning around those divisions, most of the original Albertsons LLC divisions were either gone or heavily reduced.babs wrote: ↑February 22nd, 2018, 1:18 pm
Sorry, all the IPO proceeds will go to Cerberus. They will also suck the cash out. Albertsons will have to restructure or find other ways to fix their cash situation. Most retailers that have shut down over the years have shut down to massive debt. A slight decrease in cash flow reduces their ability to make debt payments.
From reading what Albertsons wants to do Cerberus (and others, Kimco, etc.) will own a majority share, and 30% is the Rite Aid shareholders. When Albertsons broke up, it was actually Albertsons LLC that was the “original” Albertsons Inc. (New Albertsons Inc., once New Aloha Corporation, a shell company created by SuperValu) and AB Acquisition LLC was the shell company for the investors to take over what was left. At some point after buying Safeway, AB Acquisition LLC was reorganized to have Albertsons LLC, New Albertsons, and Safeway as shell companies, while it was renamed to Albertsons Companies Inc., a public company. That was the plan, but due to their inability, it ended up remaining as Albertsons Companies LLC. That is the “Albertsons” as we know it, and the Albertsons that Cerberus and other investors own.
What the Rite Aid merger would do is create a “reverse merger” where a public company is taken over by a private company. Legally, what this would probably entail is that Rite Aid Corporation will create a subsidiary, probably something like “Rite Aid LLC” with all the Rite Aid names, brandings, and operation. Rite Aid Corporation will buy Albertsons Companies LLC with Rite Aid Corporation as the surviving entity, and then would be named something like Albertsons Companies Inc. or Albertsons Rite Aid Inc. or whatever.
I was thinking the other way around, the smaller stores becoming drug stores (might help with profitability). One of the plays of American Stores-era Albertsons was to build a new Albertsons and then convert the old store (which was usually previously a Lucky) into a Sav-on Pharmacy. Even when Albertsons was in Springfield, Missouri (by way of Smitty’s-MO) they didn’t touch the former “Katz City” drug store, a 74,000 square foot store that operated as Osco Drug but today as a CVS (which no doubt has dramatically cut the floor space).arizonaguy wrote: ↑February 22nd, 2018, 11:52 am Any chance that some of the larger stores (especially in California) become converted to supermarkets?
I know of some Rite Aid stores in California that are as large, if not larger, than nearby Safeway stores.
I’m afraid that ship has sailed, as K&B ice cream has been gone for almost two decades. It wouldn’t taste the same or look the same anyway. That’s not to say they couldn’t introduce some regional flavors to the Louisiana market…wnetmacman wrote: ↑February 22nd, 2018, 9:06 am Now if they'd bring the old K&B ice cream back in Louisiana, that would be great.
I still have some questions as to what Albertsons plans to do with Wellness+ and Plenti.
Re: Albertsons to buy (what's left of) RiteAid
I believe babs' observation is likely what is happening and what will pan out. The big question is how long the combined companies will actually operate before they are sold, either in part or in whole, to Kroger, Target, Amazon or Walmart.babs wrote: ↑February 22nd, 2018, 8:59 am Sorry to be the negative nelly here but this transaction is all about giving Cerberus an exit strategy. They are using Rite Aid to back door an IPO....While many of your have presented great ways to the two organizations to work together, the reality will be tons of store closures.
The difference between this merger/acquisition and American Stores, Sav-On, etc. is that the traditional supermarket and drug store models no longer exist. The hometown grocer and pharmacy can operate in a select few areas, but when they scale up nationally they have to compete with Amazon and Walmart. Regardless of the pitch, I'm dubious whether Albertsons has the talent or technological know-how to do so. It remains to be seen if Target and/or Kroger do, but their approach to the changing retail landscape appears more well-guided than Albertsons.
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Re: Albertsons to buy (what's left of) RiteAid
I would be interested to see if Albertsons does indeed put some supermarket-like operations into a few Rite Aid stores. Most are large enough to put some items in without a big hit to the pharmacy business.lola42 wrote: ↑February 22nd, 2018, 8:11 pm The difference between this merger/acquisition and American Stores, Sav-On, etc. is that the traditional supermarket and drug store models no longer exist. The hometown grocer and pharmacy can operate in a select few areas, but when they scale up nationally they have to compete with Amazon and Walmart. Regardless of the pitch, I'm dubious whether Albertsons has the talent or technological know-how to do so. It remains to be seen if Target and/or Kroger do, but their approach to the changing retail landscape appears more well-guided than Albertsons.
Actually, Rite Aid kept the ice cream plant open for about 5 years; I remember seeing it in a few Louisiana stores (though it was branded Rite Aid) until around 2002, by which point 3 of our 6 local stores had closed. Only 2 well situated (as in away from Walgreens) stores remain. You're right though; it would be impossible to duplicate that taste. Blue Bell does a very good Creole Cream Cheese that they thankfully just finally brought back to production again.
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Re: Albertsons to buy (what's left of) RiteAid
The difference between American Stores and Albertsons (and Safeway, for that matter) is ASC had true combo stores that contained a full-line drugstore (either an Osco or a SavOn) and a full-line supermarket (mostly Jewel, but several Lucky stores and based on photos from AcmeStyle a handful of Acmes). Albertsons has maintained that model at Jewel-Osco and in some Albertsons-Oscos in AZ and a handful of Albertsons-SavOns in San Diego (possibly elsewhere). Still, the majority of the chain is a supermarket that carries a limited assortment of general merchandise with a pharmacy jammed in.lola42 wrote: ↑February 22nd, 2018, 8:11 pmI believe babs' observation is likely what is happening and what will pan out. The big question is how long the combined companies will actually operate before they are sold, either in part or in whole, to Kroger, Target, Amazon or Walmart.babs wrote: ↑February 22nd, 2018, 8:59 am Sorry to be the negative nelly here but this transaction is all about giving Cerberus an exit strategy. They are using Rite Aid to back door an IPO....While many of your have presented great ways to the two organizations to work together, the reality will be tons of store closures.
The difference between this merger/acquisition and American Stores, Sav-On, etc. is that the traditional supermarket and drug store models no longer exist. The hometown grocer and pharmacy can operate in a select few areas, but when they scale up nationally they have to compete with Amazon and Walmart. Regardless of the pitch, I'm dubious whether Albertsons has the talent or technological know-how to do so. It remains to be seen if Target and/or Kroger do, but their approach to the changing retail landscape appears more well-guided than Albertsons.
While I agree (as do several reporters who have covered the "investment") that this is a back-door to an IPO, given a RiteAid guy will be the CEO it is possible we will see more true combo stores along the lines of Jewel-Osco as well as some RiteAids that have an enhanced food section, which ASC did in Chicago when it converted several outdated Jewels to Osco Drug food markets.
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Re: Albertsons to buy (what's left of) RiteAid
There’s a BIG difference between “closures ahead” and “this is just a play to sponge out cash and leave the companies for dead”, and Miller I would trust a lot more than, say, Lampert. I think that Albertsons is aware of the fact that the market for stand-alone drug stores is smaller than the stores actually are, and they can use Rite Aid to beef up their HBA/GM sections while downscaling the store base except for areas where it would be hard for a traditional supermarket to go. (This is why that if they are going to sell the "extra" markets they need to do it soon). We probably won't see Rite Aid in areas that don't already have it, besides, the restriction with Walgreens makes re-entering places like Louisiana an impossibility, and other areas are pretty much locked up with Walgreens and CVS.lola42 wrote: ↑February 22nd, 2018, 8:11 pmI believe babs' observation is likely what is happening and what will pan out. The big question is how long the combined companies will actually operate before they are sold, either in part or in whole, to Kroger, Target, Amazon or Walmart.babs wrote: ↑February 22nd, 2018, 8:59 am Sorry to be the negative nelly here but this transaction is all about giving Cerberus an exit strategy. They are using Rite Aid to back door an IPO....While many of your have presented great ways to the two organizations to work together, the reality will be tons of store closures.
The difference between this merger/acquisition and American Stores, Sav-On, etc. is that the traditional supermarket and drug store models no longer exist. The hometown grocer and pharmacy can operate in a select few areas, but when they scale up nationally they have to compete with Amazon and Walmart. Regardless of the pitch, I'm dubious whether Albertsons has the talent or technological know-how to do so. It remains to be seen if Target and/or Kroger do, but their approach to the changing retail landscape appears more well-guided than Albertsons.
Remember all this becomes irrelevant if Rite Aid shareholders reject the deal. The buyout price is literally pennies on the dollar compared to what Walgreens offered (admittedly they convert stock into ABS) so Albertsons must convince RAD shareholders that it's their best, last, and only chance to get money out of Rite Aid AND that Albertsons will do well in the long run.
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Re: Albertsons to buy (what's left of) RiteAid
I'm pretty sure Plenti is already dead, or dying at Rite Aid. They no longer advertise earning 'Plenti Points' on items, but they have reverted back to 'Wellness+' It seems you can redeem Plenti points at Rite Aid still, but whatever you earn at Rite Aid can only be redeemed at Rite Aid.
Macy's and Chili's are pulling out of the Plenti program in May...I'm sure Rite Aid won't be far behind (which would leave just Winn-Dixie/Bi-Lo and ExxonMobil).