Fred's Pharmacy closing 185 locations

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Re: Fred's Pharmacy closing 185 locations

Post by storewanderer » September 11th, 2018, 8:19 pm

And to think this was a company that wanted to add all those Rite Aid Stores... just goes to show how that would have worked.

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Re: Fred's Pharmacy closing 185 locations

Post by wnetmacman » September 12th, 2018, 6:09 am

rwsandiego wrote:
September 11th, 2018, 5:40 pm
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.
I don't think it's so much about tarnishing the brand as it is market penetration. Some of the smaller market stores where a Walgreens exists couldn't support duplicate stores. Some of the larger markets where they coexist already have full market penetration. The smaller markets where Walgreens does not exist are those markets where they do not wish to exist. It's an economic decision. In the places where Fred's stands alone in the pharmacy business was once hailed as their core business. I can't believe they're pulling away from it.

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Re: Fred's Pharmacy closing 185 locations

Post by Knight » September 15th, 2018, 8:18 am

wnetmacman wrote:
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.
Fred's Pharmacy locations have been counted as separate locations from Fred's store locations.

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