Walgreens to acquire Rite Aid in deal worth around 10b

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Lnsean

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Damn the sector is consolidating fast...this does not bold well for pharmacists and patients.

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Big news for the retail scene! What are some downsides for pharmacists and is there any upsides to this?
 
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See CVS buys Target thread. Same discussion. I don't see any upside for anyone but the company and other retailers. It might be good time to load up on CVS/Wags stock to hold for awhile.
 
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Members don't see this ad :)
It could give them more negotiating power for increased reimbursement rate.
 
Yes. That would translate into better profit margins. It still sucks for employees.
 
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Lol who knows
They may use some of that money to hire more employees.
Walgreen has been traditionally better than CVS at getting adequate help to run the store.

But I could be delusional haha
 
this does not bold well
*bode

Lol who knows
They may use some of that money to hire more employees.
Walgreen has been traditionally better than CVS at getting adequate help to run the store.

But I could be delusional haha

Traditionally, perhaps. I would certainly give the benefit of the doubt to Wag management over CVS's, however CVS benefits, for better or for worse, from their long pharmacist shifts and little overlap. If daily CVS doesn't have to pay for pharmacist overlap, that frees up payroll for techs who are much cheaper than pharmacists.
 
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But back to OP, besides fixing his word usage, it is indeed the case that there will be adverse tendencies for employees and customers, though perhaps it doesn't take a rocket scientist to suspect as much.

More specifically I will bet that service will only become worse in the future, as the population ages and becomes poorer people will have less personal power, corporate will continue to look to save on payroll and if every company has bad service then customers will have no choice but to deal with it.

RiteAid employees may suffer by RiteAid's healthy hours of 8-9 changing to Walgreens 8-10, meaning that they'll never have enough sleep, and the help that they had in order to finish their work by 9 may be reduced since there is now a pharmacist hanging around until 10. Although some RiteAids are 8-10 at the moment also and some Wags have nonstandard hours
 
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I don't want to be right. I saw this coming and I made some money today. If you want to know what you can expect, read my posts in the CVS buys Target thread.

Expect companies like Walmart, Kroger to make a move. Smaller chains like Albertson, Kmart are going to go out business if they don't make some bold changes. They need to do it soon. They are going to be treated like a small independent pharmacy.

You can thank Obamacare and the Fed's easy money policy for this. Companies are just going to get bigger and bigger. Be ready. It is going to hit you.

Life is a zero sum game. There will be winners and losers. Don't be the loser.
 
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I don't want to be right. I saw this coming and I made some money today. If you want to know what you can expect, read my posts in the CVS buys Target thread.

Expect companies like Walmart, Kroger to make a move. Smaller chains like Albertson, Kmart are going to go out business if they don't make some bold changes. They need to do it soon. They are going to be treated like a small independent pharmacy.

You can thank Obamacare and the Fed's easy money policy for this. Companies are just going to get bigger and bigger. Be ready. It is going to hit you.

Life is a zero sum game. There will be winners and losers. Don't be the loser.

Seems like the big ones have consolidated... Are you thinking that WAG or CVS will try to buy out the pharmacy businesses of the remaining grocery chains like what happened at target? I can see that happening, though it would be impossible to predict which ones. I'm sure the execs at the grocery chains are in the war room discussing these deals as we speak.
 
40% up on RAD, good for whoever got in at $6. A friend of mine made close to $15k.
 
Thank you Obamacare.

"This is all about cost savings. The Affordable Care Act is putting pressure on companies to lower costs. Faced with ever-higher drug prices, pharmacy benefit managers are pushing back against both the pharmaceutical companies and the retail drugstore chains. If they can't get them to lower prices, they will force their beneficiaries (that's you and me) to pay a higher portion of the costs."

http://www.cnbc.com/2015/10/27/walg...ne%7cheadline%7cstory&par=yahoo&doc=103113651
 
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I can't even picture what pharmacy is going to be like in 10 years. Save your dollars people because it is going to get ugly.
 
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I don't want to be right. I saw this coming and I made some money today. If you want to know what you can expect, read my posts in the CVS buys Target thread.

TBF, Wags taking over Rite Aid has been the talk of pharmacy for at least three years now, it's not like this was out of the blue.
 
I worry for the pharmacists working for Rite Aid located next to Walgreens, there are stores like that. They'll likely shut them down. I wonder what this means for employment numbers across the board. More pharmacist jobs or less?
 
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I worry for the pharmacists working for Rite Aid located next to Walgreens, there are stores like that. They'll likely shut them down. I wonder what this means for employment numbers across the board. More pharmacist jobs or less?

Well to quote the pharmacy manpower study...
 
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TBF, Wags taking over Rite Aid has been the talk of pharmacy for at least three years now, it's not like this was out of the blue.

It is not just about Wag taking over Rite Aid. There is merger everything in healthcare and there is more to come.
 
This not being done for the consumers benefit (or for the benefit of the employees for that matter).

I'm tired of these duopolies and triopolies. Airlines. Cell phones. Cable companies. Health insurance.

And in my areas, banks and hospitals. Always the same. Higher prices. Less service.
 
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I worry for the pharmacists working for Rite Aid located next to Walgreens, there are stores like that. They'll likely shut them down. I wonder what this means for employment numbers across the board. More pharmacist jobs or less?

You will frequently see a Walgreen's and a Rite Aid on opposite corners of the same intersection. This will certainly buy market share for Walgreen's, but cost jobs, as one must assume that Walgreen's is fully staffed for the hours the location demands.
 
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Wow things are going to get ugly
 
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As a capitalist, I am chagrined that the balance of power between labor and capital is seriously unbalanced in favor of big business and furthered by every new mega merger. Unbundling makes more sense in concentrated industries. Banking, insurance?

If workers have more choices to negotiate with employers-take their employment elsewhere-the consumer will benefit and businesses will have more motivation to grow their business organically. A Rite Aid and Walgreen merger means one less point of negotiation. I say workers first over both big business and unions alike: real power to the people, not through a surrogate or with less leverage than necessary.

A big merger reduces worker choice and creates immense new wealth concentrated in a few wallets. Their work for each deal requires words and a few clicks on the web. A worker spends more time, unpaid, commuting to work.

The chairman of Goldman Sachs not long ago said more regulations are a costly pain but fortunately, reduce competition...
 
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Who knew Kmart would outlive Riteaid. Although I'm guessing no one would ever want to buy Kmart. That whole company needs to just go away.
 
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Walgreens and CVS have invaded pretty much invaded every sector except for hospital pharmacy: long-term care (Omnicare), infusion (Coram), specialty, mail-order, big-box retail (Target), corner-drug stores, and more.

I hope they stay out hospital pharmacy. There isn't much left except for Costco and a few grocery store chains. Rite-Aid was a major employer of new graduates in many states. I am imagining this will ding the job market for all new graduate pharmacists. Residencies are going to get even more competitive.
 
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Walgreens and CVS have invaded pretty much invaded every sector except for hospital pharmacy: long-term care (Omnicare), infusion (Coram), specialty, mail-order, big-box retail (Target), corner-drug stores, and more.

I hope they stay out hospital pharmacy. There isn't much left except for Costco and a few grocery store chains. Rite-Aid was a major employer of new graduates in many states. I am imagining this will ding the job market for all new graduate pharmacists. Residencies are going to get even more competitive.

Can you guys speak with straight english please. Will this increase jobs or decrease jobs?

Ever since the purchase of Target, they have been practically begging for applicants.
 
Can you guys speak with straight english please. Will this increase jobs or decrease jobs?

Ever since the purchase of Target, they have been practically begging for applicants.

lmao. those are fake postings on target. please don't even think they are real. If you took any economics class in college, you'd know that when companies and industries consolidate, there will be a lot of job cuts and layoffs. These will be branded by management as "synergy" or "increased efficiency." Whatever it is called, there will be less jobs, less bargaining power, and less choice for pharmacists and consumers alike. HOWEVER, on that note, I am all for the merger because I have to unload like 16,000 shares of RAD tomorrow or in the next few days. Congrats to all of you who have bought into it.
 
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Can you guys speak with straight english please. Will this increase jobs or decrease jobs?

Ever since the purchase of Target, they have been practically begging for applicants.

Why would this increase jobs? Take the phenergan bottle out of your mouth.
 
Some of the chains are taking over hospitals' outpatient pharmacies.
 
Can you guys speak with straight english please. Will this increase jobs or decrease jobs?

Ever since the purchase of Target, they have been practically begging for applicants.

Target pharmacies weren't being closed. Many Rite-Aids are right next to Walgreens and will need to be closed. This will decrease some of the labor force.
 
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The Federal Trade Commission might have something to say about this proposed acquisition...I'm not convinced that this is a done deal.
 
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Target pharmacies weren't being closed. Many Rite-Aids are right next to Walgreens and will need to be closed. This will decrease some of the labor force.

Dont assume rite aid stores are the ones that are going to close. Some Walgreens will too.

Even tho I made some money from this purchase, this is so crappy for our profession. Most people don't even understand the magnitude of this. This will cause other chains to sell their pharmacies or close them all together.

CVS is not going to buy them because they sell cigarettes. CVS may not even be able to do it because of anti-trust law. Who is left? Express Scripts? They just purchased Medco and they are still reorganizing.
 
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Dont assume rite aid stores are the ones that are going to close. Some Walgreens will too.

Even tho I made some money from this purchase, this is so crappy for our profession. Most people don't even understand the magnitude of this. This will cause other chains to sell their pharmacies or close them all together.

CVS is not going to buy them because they sell cigarettes. CVS may not even be able to do it because of anti-trust law. Who is left? Express Scripts? They just purchased Medco and they are still reorganizing.

I'm agreeing with you 100%. This is a dangerous time to be in the pharmacy business. If I were a student I would go residency or bust right now.
 
I'm agreeing with you 100%. This is a dangerous time to be in the pharmacy business. If I were a student I would go residency or bust right now.

But yet, cricket from APhA. The fools who join this organization are just giving money to an organization that look after their sponsors' interest, not the interest of this profession.
 
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But yet, cricket from APhA. The fools who join this organization are just giving money to an organization that look after their sponsors' interest, not the interest of this profession.

How can they? Our president, LB Brown, excuse me Dr LB Brown, is too busy brainwashing the chapman students about all the emerging clinical jobs that they will have
 
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They're better keep the Thrifty ice cream counters, or I'm gonna flip ****.
 
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I'm agreeing with you 100%. This is a dangerous time to be in the pharmacy business. If I were a student I would go residency or bust right now.

Unfortunately Residency is no guarantee either right now. I was reading stats that 60 USC students went to do a residency last year. I can't imagine where they will find 60 jobs for these residency trained RPh..
 
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Wag-Aid-CVS-Tar is gonna crush it. Their ticker will be WACT. Calling it right now
 
Tired of competition? Buy your competitor.The new American way.

LESS competition is NOT a good thing. Monopolies have been illegal in this country for years. They DESTROY the economy, but since the early 80' it has been a rush to consolidate everything under one corporation.

Perfect example is Comcast. I have NO ACCESS to any other high speed internet service where I live. Comcast was given EXCLUSIVE rights to build on CITY owned property and given easements on to MY property. Even if I do not want their service, the are allowed to keep their cables on MY property. They also have a vertical monopoly making it much worse, Kind of like if Pfizer bought Rite Aid and Walgreens and told CVS and all other pharmacies that they would have to pay triple what THEIR pharmacies paid for the product. Immoral, illegal, but allowed with the impotent and incompetent FTC and DOJ over the last 35 years.
 
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Definitely less pharmacy jobs and a worsening job market than it is currently. I know quite a few Rite-Aids next to a Walgreens. What do you think will happen? Keep both stores open? NO.

They'll consolidate facilities (save $$ there) and lay off pharmacists. This happens w/every merger and is plainly obvious.

And his English is very straight. The problem seems to be that you can't read it.

Can you guys speak with straight english please. Will this increase jobs or decrease jobs?

Ever since the purchase of Target, they have been practically begging for applicants.

Merger and acquisitions (M&A) aren't just a pharmacy thing, you see it so much these days w/cheap money and it's a good time to do it. We're not really surprised. But I do wonder like others if FTC will let it go through. Too little regulation and this is what you get.

Further bad news for the profession adding more negatives to the positives and general downward trend of the field.
 
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Lots of jobs will be lost. I remember when Walgreens bought USA Drug, many stores were closed. The job market isn't really in a place to reallocate all of these pharmacists either.
 
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In general, higher volume pharmacies are more profitable than lower volume pharmacies. If you can combine 3 stores doing 1500 per week into one store doing 4500 per week you make a lot more money. I think we are going to see this.
 
Walgreen's runs some outpatient pharmacies in hospitals.

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When they start to take over inpatient services I think I'll start searching for my next career.
 
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Do you guys thinking the front end store will provide Walgreens an incentive to keep more rite aids around? Eventhough some of the rite aids may not be high volume, the front end stores could be doing well.
 
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