I don't see Amazon taking any RAD properties - especially where a current bargaining agreement is in place, Bartell's or otherwise.ClownLoach wrote: ↑September 28th, 2023, 2:50 pmMakes a lot of sense. Does anyone have a good comparison of West Coast store count vs East Coast? Maybe that would explain the supposed threat of closing hundreds of additional stores when it seems like they're already exiting there on a 3 to 1 basis vs West Coast.storewanderer wrote: ↑September 27th, 2023, 11:02 pm The entire west coast operation is legally "Thrifty Payless" from a licensing perspective. It is just that Payless name that they sold.
However a quick visit to the trademark database seems to reveal that the OR group who bought the Payless name has let those trademarks die. Someone tried to trademark "Thrifty Payless Drugs", an individual from Sherman Oaks, but that was in 2011 and that was allowed to die in 2012.
I have thought of another potential transaction that I think may be good. I am wondering if now that Save Mart did not get chosen for any Kroger/Albertsons store divests if that investment group may have an interest in a block of west coast Rite Aid units and perhaps one distribution center at a fire sale price. Despite exiting the pharmacy business at Save Mart (a move that I suspect helped them not get chosen for any Kroger/Albertsons store divests), I am curious if it may be different for them if they were able to buy actual drug stores. From what I can tell Bob Miller is still in an oversight position on Save Mart's board. I suspect Save Mart has some kind of a non-compete agreement with Walgreens so if the investment group who controls Save Mart would go this route they'd have to run these Rite Aids as a separate division from Save Mart, similar to how World Market is completely separate from Save Mart.
I don't see a benefit to a rebrand on the west coast. I don't feel like Rite Aid necessarily has a bad reputation among customers on the west coast. I think the wellness remodels went a long ways in improving customer perception of Rite Aid as a chain.
To me, the behavior of Rite Aid, stringing out what seems like a filing that should happen sooner than later, their pseudo PR effort etc. indicate they're trying to work a deal for someone to acquire a good chunk of the company as a going concern. They must be interested in trying to save the company instead of letting it be liquidated.
Save Mart would probably be a good acquirer of a slimmed down West Coast only chain (or chains if you assume they'd leave Bartell alone). I'm still wondering if Amazon goes and makes a play to acquire the entire Bartell segment as a low cost learning experiment into the drugstore and retail pharmacy business, since they seem to be having slightly more success growing their pharmacy front versus their grocery operations these days. Low risk, high potential reward. Somehow, despite their crappy track record I could see them doing well with Bartell. They would probably have minimal changes other than making customer service desk an Amazon return and pickup counter, add some lockers, and probably make Prime a loyalty program. Behind the scenes whatever deal making they're up to with insurance companies could apply to fixing the financial side of the pharmacy. They could merge the PBM into Amazon pharmacy as well. It's better than seeing it liquidated.
It would make Amazon look foolish to acquire a chain with a current bargaining agreement when they have been very vehemently anti-union toward their own employees and work locations. At the one Amazon location that has unionized, does that location have an actual in place bargaining agreement?
If it were not for the RAD bargaining agreements in place, I could see Amazon picking up select west coast real estate - but the bargaining agreements go with the stores, unless of course the stores are completely shut down. The bargaining agreements are a noose around anyone's neck that wants to acquire the stores, a select few or whatever number a potential acquirer is looking to purchase.
The bargaining agreements and the required continued funding of the joint employer-UFCW Drug Trust Fund (employee healthcare and pension benefits) is a bitter pill for some potential buyers of west coast locations.
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