Walgreens Close To Buying Rite Aid

CalItalian
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Re: Walgreens Close To Buying Rite Aid

Post by CalItalian »

Rite Aid Corporation Stock Isn't Worth Chasing
http://investorplace.com/2017/05/rite-a ... S5i57pFxPY
Pretty much what we've been saying. This deal is looking increasingly dead and does Walgreens even want RA anymore.
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Re: Walgreens Close To Buying Rite Aid

Post by pseudo3d »

CalItalian wrote:Rite Aid Corporation Stock Isn't Worth Chasing
http://investorplace.com/2017/05/rite-a ... S5i57pFxPY
Pretty much what we've been saying. This deal is looking increasingly dead and does Walgreens even want RA anymore.
I don't think that they will actually go to court over it. I think they rigged the fees for Rite Aid that they'll still be ahead even if it doesn't close. Question is what comes next.

At this point, I can see Albertsons picking Rite Aid up for a bargain. Maybe they could even physically combine side-by-side stores in the northwest (like Baker City's Safeway and Rite Aid) into large combo stores. :roll:
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Re: Walgreens Close To Buying Rite Aid

Post by storewanderer »

Albertsons might be a good buyer for Rite Aid but there would be a ton of anti-trust issues up and down the west coast. Also I suppose some in Acme and Shaws regions.
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Re: Walgreens Close To Buying Rite Aid

Post by wnetmacman »

pseudo3d wrote:I don't think that they will actually go to court over it. I think they rigged the fees for Rite Aid that they'll still be ahead even if it doesn't close. Question is what comes next.
The SEC is asking for further information. It will go to court.
pseudo3d wrote:At this point, I can see Albertsons picking Rite Aid up for a bargain. Maybe they could even physically combine side-by-side stores in the northwest (like Baker City's Safeway and Rite Aid) into large combo stores. :roll:
I believe that the current Albertsons has stated that they will not be in the standalone drugstore business. And there would indeed be almost as much hoopla over Albertsons buying as there is Walgreens. I see the whole thing falling apart, and Fred's and Rite Aid will be left holding the proverbial bag.
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Re: Walgreens Close To Buying Rite Aid

Post by pseudo3d »

wnetmacman wrote:
pseudo3d wrote:I don't think that they will actually go to court over it. I think they rigged the fees for Rite Aid that they'll still be ahead even if it doesn't close. Question is what comes next.
The SEC is asking for further information. It will go to court.
pseudo3d wrote:At this point, I can see Albertsons picking Rite Aid up for a bargain. Maybe they could even physically combine side-by-side stores in the northwest (like Baker City's Safeway and Rite Aid) into large combo stores. :roll:
I believe that the current Albertsons has stated that they will not be in the standalone drugstore business. And there would indeed be almost as much hoopla over Albertsons buying as there is Walgreens. I see the whole thing falling apart, and Fred's and Rite Aid will be left holding the proverbial bag.
I don't recall when they said this, and if they did, it was in regards to not buying the castoff stores. Even if they DID buy it for cheap, it would be another thing to get everything integrated...and I don't think the Rite Aid brand is enough to really advertise it as being a "store-within-a-store" like they did for Albertsons Sav-on (which was a huge mistake brand-wise, as they spent a ton of money on signage in markets that never had a Sav-on drug store).
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Re: Walgreens Close To Buying Rite Aid

Post by storewanderer »

I think Osco and Sav-On were pretty well respected names in the drug store business. I believe Osco and Sav-On were known for having a lot of good bargains, wide selection of goods especially liquor, and reliable service. I do not think Rite Aid has a very good reputation in the majority of its markets, particularly in the South and in the East. I think Rite Aid's reputation is better on the west coast but even there it is spotty and the primary reason it has even a remotely good reputation out west is because they came in and messed up stores in 1998-1999 (Thrifty/Payless) and retracted some of their poor moves like cutting mix and cutting weekly ad circulars, but then others came in years later and messed up stores even more (CVS with Longs and Sav-On) so suddenly Rite Aid seemed better than CVS.

I do not think we would ever see co-branded grocery/Rite Aid Stores even if one of the grocers was to buy Rite Aid.
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Re: Walgreens Close To Buying Rite Aid

Post by pseudo3d »

storewanderer wrote:I think Osco and Sav-On were pretty well respected names in the drug store business. I believe Osco and Sav-On were known for having a lot of good bargains, wide selection of goods especially liquor, and reliable service. I do not think Rite Aid has a very good reputation in the majority of its markets, particularly in the South and in the East. I think Rite Aid's reputation is better on the west coast but even there it is spotty and the primary reason it has even a remotely good reputation out west is because they came in and messed up stores in 1998-1999 (Thrifty/Payless) and retracted some of their poor moves like cutting mix and cutting weekly ad circulars, but then others came in years later and messed up stores even more (CVS with Longs and Sav-On) so suddenly Rite Aid seemed better than CVS.

I do not think we would ever see co-branded grocery/Rite Aid Stores even if one of the grocers was to buy Rite Aid.
No, Rite Aid branding will never be seen taking prominence like Albertsons Sav-On once did...but "Albertsons Sav-On" was a huge mistake company-wise because despite how respected Sav-On and Osco might have been in their markets, it meant nothing in markets like Louisiana and Texas except expensive sign-changing. (Even some Florida stores got it, I think). LLC later removed a lot of the signage on stores they renovated. I can still see it being on the outside of stores somehow...but only on stores in that market, and not nearly as prominent.
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Re: Walgreens Close To Buying Rite Aid

Post by storewanderer »

I would not call the Osco/Sav-On branding as much of a "mistake" as a waste of time and money. I do not think it hurt them any, nor do I think it really helped them.

In the market I am in, they did co-branded Albertsons/Sav-On and it was like a Jewel/Osco, an actual combo store. Drug shelf tags on the drug side, drug ad ran Sunday-Saturday, etc. They really did add in a lot of new mix when they did that, and also added in quite a bit of labor... in the markets where it was "Sav-On Pharmacy" they did not do any of that and it meant nothing really for that Sav-On Pharmacy sign to be out front. But it didn't hurt anything... (maybe it cost some money to light up the extra letters?)...
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Re: Walgreens Close To Buying Rite Aid

Post by mbz321 »

They did the same 'wasteful' thing with Acme too, which made zero sense as unless you happened to be from the West Coast, 'Sav-On' had zero meaning in this region. (Further East, I believe some Shaws became Shaws-Osco, which at least made some sense as I believe Osco had stores in that region at one time....Maybe they thought Acme-Osco sounded odd). But it did absolutely nothing for Acme. As stores have been remodeled, most have lost the Sav-On branding, although for some reason, a few have had new Sav-On signage go up (at least inside the store), through very recent remodels.
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Re: Walgreens Close To Buying Rite Aid

Post by BillyGr »

mbz321 wrote:They did the same 'wasteful' thing with Acme too, which made zero sense as unless you happened to be from the West Coast, 'Sav-On' had zero meaning in this region. (Further East, I believe some Shaws became Shaws-Osco, which at least made some sense as I believe Osco had stores in that region at one time....Maybe they thought Acme-Osco sounded odd). But it did absolutely nothing for Acme. As stores have been remodeled, most have lost the Sav-On branding, although for some reason, a few have had new Sav-On signage go up (at least inside the store), through very recent remodels.
Yes, there were Osco stores (separate from supermarkets) in at least some parts of New England at one time (I remember them from New Hampshire, not sure how widespread they were).
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