Fred's Pharmacy closing 185 locations

Knight
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Fred's Pharmacy closing 185 locations

Post by Knight » September 10th, 2018, 10:45 am

One hundred eight-five Fred's Pharmacy locations are closing as Fred's sells prescription records to Walgreen's Boots Alliance.

Fred's is one step closer to closing all stores.

Further reading

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Re: Fred's Pharmacy closing 185 locations

Post by wnetmacman » September 10th, 2018, 11:16 am

Knight wrote:
September 10th, 2018, 10:45 am
One hundred eight-five Fred's Pharmacy locations are closing as Fred's sells prescription records to Walgreen's Boots Alliance.

Fred's is one step closer to closing all stores.

Further reading
Whether they close all stores will depend on how they handle this loss of revenue. In many of the places they operate, Fred's is the only general merchandise operator in town, or at least the largest. I suspect the stores they've sold the prescriptions and inventory to Walgreens are only in places where both operate. The Fred's store will remain open, just without a pharmacy.

In many of the locations with competition, Fred's Pharmacy doesn't do well at all. Where they have to compete against Walgreens, CVS and Walmart, they do poorly because they have horrible hours (and no Sundays), smaller inventories and smaller staffing. They simply cannot compete. In smaller towns, however, that is the profit center of the store. I believe much like others have said elsewhere; Walgreens is going to get more of this business before it's over with.

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Re: Fred's Pharmacy closing 185 locations

Post by Knight » September 10th, 2018, 8:02 pm

Fred;s is losing or has lost battles to Dollar General and Dollar Tree. It cancelled plans to take on Rite Aid locations after the aborted Walgreen'/Rite Aid merger. It continues to close stores and operate in debt.,

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Re: Fred's Pharmacy closing 185 locations

Post by storewanderer » September 10th, 2018, 8:22 pm

Fred's is supposedly keeping 166 pharmacies. I wonder why they didn't sell them all.

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Re: Fred's Pharmacy closing 185 locations

Post by wnetmacman » September 11th, 2018, 4:40 am

storewanderer wrote:
September 10th, 2018, 8:22 pm
Fred's is supposedly keeping 166 pharmacies. I wonder why they didn't sell them all.
Most likely these are the ones where even Walgreens does not exist.

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Re: Fred's Pharmacy closing 185 locations

Post by BillyGr » September 11th, 2018, 10:31 am

wnetmacman wrote:
September 11th, 2018, 4:40 am
storewanderer wrote:
September 10th, 2018, 8:22 pm
Fred's is supposedly keeping 166 pharmacies. I wonder why they didn't sell them all.
Most likely these are the ones where even Walgreens does not exist.
Apparently they aren't as flexible as CVS, or they could have worked out an option to operate the pharmacies as they are inside the Fred's stores, as CVS did with Target stores.

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Re: Fred's Pharmacy closing 185 locations

Post by wnetmacman » September 11th, 2018, 12:20 pm

BillyGr wrote:
September 11th, 2018, 10:31 am
wnetmacman wrote:
September 11th, 2018, 4:40 am
storewanderer wrote:
September 10th, 2018, 8:22 pm
Fred's is supposedly keeping 166 pharmacies. I wonder why they didn't sell them all.
Most likely these are the ones where even Walgreens does not exist.
Apparently they aren't as flexible as CVS, or they could have worked out an option to operate the pharmacies as they are inside the Fred's stores, as CVS did with Target stores.
Target store size: 120,000 square feet. Some, but minimal product overlap.
Fred's store size: 14,000 square feet. Essentially Walgreens in all but name and some selection.

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Re: Fred's Pharmacy closing 185 locations

Post by Knight » September 11th, 2018, 1:40 pm

Many freestanding drugstores are less than 14,000 square feet. It could be possible a drugstore chain acquired a number of locations to replace non-freestanding store locations or to increase store count.

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Re: Fred's Pharmacy closing 185 locations

Post by wnetmacman » September 11th, 2018, 5:15 pm

Knight wrote:
September 11th, 2018, 1:40 pm
Many freestanding drugstores are less than 14,000 square feet. It could be possible a drugstore chain acquired a number of locations to replace non-freestanding store locations or to increase store count.
This purchase does not include any buildings or merchandise from any Fred's store, just the pharmacy records and inventory. They are not buying any of these stores. They are eliminating competition in the pharmacy. A typical Walgreens runs close to the size of a typical Fred's. While Walgreens could probably pull of a purchase of all of Fred's, it would raise antitrust concerns due to the need to close or divest many of the locations. I would suspect a later announcement will come that will find Walgreens purchasing the remaining stores outright, and Fred's closing the other stores.

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Re: Fred's Pharmacy closing 185 locations

Post by rwsandiego » September 11th, 2018, 5:40 pm

wnetmacman wrote:
September 11th, 2018, 12:20 pm
BillyGr wrote:
September 11th, 2018, 10:31 am
wnetmacman wrote:
September 11th, 2018, 4:40 am


Most likely these are the ones where even Walgreens does not exist.
Apparently they aren't as flexible as CVS, or they could have worked out an option to operate the pharmacies as they are inside the Fred's stores, as CVS did with Target stores.
Target store size: 120,000 square feet. Some, but minimal product overlap.
Fred's store size: 14,000 square feet. Essentially Walgreens in all but name and some selection.
Based on photos I've seen, Fred's stores are a few giant steps down from Walgreens. My guess is they do not want to tarnish their brand.

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