Wil Walgreen Buy Rite-Aid?

Wil Walgreen Buy Rite-Aid?

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Geraldo

United States

#1 Nov 29, 2011
This is from the Daily Herald - Nov. 28. The Daily Herald is a paper from the Chicago area.
"Rite Aid Corp. climbed 7.3 percent after Susquehanna Financial Group said it may be a takeover target of Walgreen Co., the largest U.S. drugstore chain.
Acquiring Rite Aid, the third-largest U.S. drugstore chain, for $1.60 a share in stock would boost Deerfield-based Walgreen's profit by about 5.8 percent in the first year after the transaction, Joseph Stauff, an analyst with Susquehanna in New York, wrote today in a note to clients.
Growing “hostility” over reimbursement rates between drugstore chains and companies that manage drug benefits for corporations and other employers may lead to consolidation among retailers, Stauff said. Walgreen, which controls almost 28 percent of prescription sales, would capture another 7.1 percent with Rite Aid, he estimated.
CVS Caremark Corp.'s market share is 23.5 percent, according to Susquehanna.
Rite Aid advanced to $1.18 at 4 p.m. in New York. Walgreen rose 1 percent to $32.79.
Walgreen doesn't comment on speculation, spokesman Jim Cohn said in an e-mail. Susan Henderson, a spokesman for Camp Hill, Pennsylvania-based Rite Aid, also declined comment.
Walgreen's contract to provide prescriptions for customers of Express Scripts Inc., a pharmacy benefit manager, expires at the end of the year. The two companies haven't resolved differences over how much Walgreen would charge for prescriptions and how much Express Scripts would reimburse the retailer, executives told analysts at Lazard Capital Markets conference Nov. 16.
MGT

Louisville, KY

#2 Nov 30, 2011
This has been rumored on and off for years.
eaglepar

United States

#3 Nov 30, 2011
Wouldn't be a smart financial move in my opinion, but then again, I don't work in the ivory tower.
RXDR

Baltimore, MD

#4 Nov 30, 2011
I hope someone buys Rite Aid before it is to late for Rite Aid or Rite Aid sells the west coast stores to CVS or Walgreens and becomes an east cost chain and pays of the 6.5 billion debt.
Common sense

Owings Mills, MD

#5 Nov 30, 2011
It will have to be a smart power play, selling off bad Riteaid assets and cornering the good locations and pharmacy files.
Buying Riteaid in some states will be like Duane reade or happy Harry's buys, which were good.
Consolidation of assets and the logistics will be monumental but can be done with a plan.
COS MIC MARGE

AOL

#6 Dec 3, 2011
The Rite Aid in my area at any given time only has 3 cars in the lot 2 of them are staff-its dead on a bun. I ask people all the time about it- they all tell me there is never anyone around to help them.People are super needy- crave attention these days much more than ever because extra money is sooo hard to come by.It is about service.
Krebs

Scottdale, PA

#7 Dec 10, 2011
That will put so many pharmacists of out work. Walgreens will close any store near an existing walgreens and lay off the staff from the rite aids. With an already saturated market, this will be catastrophic. I work at Walgreens and I can confirm that there have been talks of this from our supervisors. They don't mention anything that isn't in the works.
Lissajedi

Philadelphia, PA

#8 Dec 13, 2011
I work at Walgreens as well, and there has been NOTHING said by anyone in my district, or market about such a thing happening. I don't put any faith in this at all.
Doug

Portland, OR

#9 Dec 17, 2011
If any company on the planet could buy and turn rite aide around it's walgreens.. They have the staff and the money.. I hope it's true ..
-wag

Owings Mills, MD

#10 Dec 17, 2011
Walgreens should buy Rite-Aid if anything to stick up ESI ambition to eliminate community pharmacy. Did nay of you have the opportunity t oread Any transcripts of Paz the ceo of Perx of everything has been against the profession of pharmacy from comparisons to Macdonalds and Star bucks to robots.
I know what the game plan of Perx is and it is not happening! There are others who depend on their professions for livelihood and depended on a pharmacy for it not considering the fact we had the belief we can make a difference in peoples health. Its incredible one person believes eliminating the whole profession will make the bottom line better for personal reasons.
Quite honestly all the associations of pharmacy should be ashamed! to let this happen. Pharmacy is more of a door mat now a days from the customer/ public to the PBM point of view. How did this happen!
We are caught in a swarm of third part rejects, insurance brokers clerks, receptionist, cashiers thats defining our profession. We had little to do with this but the powers that be see us in this view. I frankly am ashamed of this, taking a stand only gets you fired.
Hope for the better....this cant happen
Randy

Rumford, RI

#12 Jan 6, 2012
I work at a riteaid and there has been talk going around about 2 to 3 months now that riteaid is gonna be bought by walgreens. Any riteaid near walgreens will be destroyed and and riteaid near cvs will be come walgreens. If they did buy it cvs will be in some trouble.
Hohokham

Peoria, AZ

#13 Jan 6, 2012
Walgreen can huff and puff all it wants, but ultimately it is merely a tempest in a teapot. Look what happened with Long Drugs - outbid CVS, then back out of the deal. CVS was happy to acquire Longs, and now look at the price of the Stock. CVS had such a good profit this quarter, they bought back shares and returned a greater dividend to the shareholders! Walgreen just had a miserable quarter.

The busiest drugstore in our area now has a sign across the front doors :**CVS WELCOMES EXPRESS SCRIPTS MEMBERS**.

I think eventually CVS will purchase Rite-Aid and put everyone to work!
COS MIC MARGE

AOL

#14 Jan 6, 2012
to stay super duper I sure hope that Walgreens - steps off that drug store grab notion. Get back to the nuts and bolts of the operation - lets get busy keeping the Walgreens brand - style intact. - now is not the time to buy out the Rite Aids - I think they may go away on their own. Have you been to a one these days- It's like a honking funeral parlor.Walgreens is lush and happening - from a pro-shoppers P.O.V....
Hohokham

Peoria, AZ

#15 Jan 6, 2012
"Back to the NUTS and BOLTS" of the operation??

WALGREEN was initially famous for it's Soda Fountain and a BLT you got at it's lunch counter. When was the last time you had a "phosphate" or a milkshake at Walgreens?

Rite-Aid is the THIRD largest retail drugstore chain in the United States based on revenues and number of stores. Sorry if you haven't noticed.
COS MIC MARGE

AOL

#16 Jan 6, 2012
Hohokham wrote:
"Back to the NUTS and BOLTS" of the operation??
WALGREEN was initially famous for it's Soda Fountain and a BLT you got at it's lunch counter. When was the last time you had a "phosphate" or a milkshake at Walgreens?
Rite-Aid is the THIRD largest retail drugstore chain in the United States based on revenues and number of stores. Sorry if you haven't noticed.
I do notice - flash mobs like Soda Pop that will never change - people still love pop alerts and cases of soda. As for Rite Aids why another bunch of stores now if the Walgreens are in such trouble?
COS MIC MARGE

AOL

#17 Jan 6, 2012
Sure wish Walgreens had wonderful Blt's - Shakes and vintage store elements - the wonderful chrome fixtures - staff decked out in white shirts ties- women in skrits. Much like the wonderful posters that hang over the front check outs and snap shots I have seen of retro- Walgreens. To me it Seems like when the plow horse stores merge with others it becomes a mess and ends up like KMART /Sears Iconic retail ruined. Thats my concern.
Sorry for Wags

Sturgeon Bay, WI

#18 Jan 7, 2012
They really don't need to buy anything just fix the mess that Walgreen's is in. I like my job and love what I do but you can't be cutting hours and think that everything is going to be kept running smoothly. Corp had no idea what really goes on at the store level. Main problem is the pricing and sales people who put the ads in the system. They need to do there job and get it right or they should have to answer to someone just like we would have to. Our pharmacist works a open to close (9-9) by them self with techs. Un fricken real no bathroom breaks or lunch just a fast run or quick grab of food. But lets make sure there are a big bonus for the top dogs in corp. It's so unfair and sad that a nice company at one time is slowly getting ran in the ground
gnn

Since: Aug 11

Location hidden

#19 Jan 8, 2012
Sorry for Wags wrote:
They really don't need to buy anything just fix the mess that Walgreen's is in. I like my job and love what I do but you can't be cutting hours and think that everything is going to be kept running smoothly. Corp had no idea what really goes on at the store level. Main problem is the pricing and sales people who put the ads in the system. They need to do there job and get it right or they should have to answer to someone just like we would have to. Our pharmacist works a open to close (9-9) by them self with techs. Un fricken real no bathroom breaks or lunch just a fast run or quick grab of food. But lets make sure there are a big bonus for the top dogs in corp. It's so unfair and sad that a nice company at one time is slowly getting ran in the ground
I totally agree certain depts. in corperate need to get their stuff togeather they have made things very hard on the customers and have taken valuable time away from the employees straighening their messes like the ad tags some of the take a long time to put up because some are so generic and say select item of maybe 6 differant brands not all employees know how to read the position on the bottom of the tag.Customers always complaining about the sale ad that we do not have a item that is not a basic item in the ad. And warehouse also have to many mixed totes,broken items, dumping products on us that we do not need.Bonus items not in the system to ring up as Bogo differant ups.Just to name a very few off the top.It is pretty simple in the store what we need to do but when other depts in corp.,warehose are not up to snuff it takes away from our customers.
COS MIC MARGE

AOL

#20 Jan 8, 2012
gnn wrote:
<quoted text>I totally agree certain depts. in corperate need to get their stuff togeather they have made things very hard on the customers and have taken valuable time away from the employees straighening their messes like the ad tags some of the take a long time to put up because some are so generic and say select item of maybe 6 differant brands not all employees know how to read the position on the bottom of the tag.Customers always complaining about the sale ad that we do not have a item that is not a basic item in the ad. And warehouse also have to many mixed totes,broken items, dumping products on us that we do not need.Bonus items not in the system to ring up as Bogo differant ups.Just to name a very few off the top.It is pretty simple in the store what we need to do but when other depts in corp.,warehose are not up to snuff it takes away from our customers.
I know- it's crazy how many random items arrive smashed- in our totes as for tags- there has to be a better way to do them- you are right - when selected items are on sale - people seem to be confused often thinking it is the entire range of products - for an example just a few shades of eye shawdow rather than the entire color selections? I know it's due to phasing out a line - but customers become resentful and do not like that type of sale tag. To save time why not print strips of add tags all in numeric
order to place over the exsisting tags.Maybe this might prevent the scads of price checks , each shift, that can become a daunting task and happen a wee bit too much.
blkballar

Lawrenceville, GA

#21 Jan 8, 2012
I works for Walgreens and I have heard from other peoples that Walgreens will not buy Rite-Aide. I have heard the CVS was going to buy them out on down the line. I think if nothing do not occur soon, they will be closed by next year.

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