Walgreens to close/sell 500-1000 Rite Aid stores

[BMBiology]

Sept 8 (Reuters) - Drugstore chain Walgreens Boots Alliance Inc said it would likely have to divest between 500 and 1000 stores to win regulatory approval for its planned acquisition of Rite Aid Corp.

Walgreens had earlier estimated it would not have to sell more than 500 stores to win over regulators.

http://finance.yahoo.com/news/walgr...wMyBHJlZ2lvbgNVUwRzeW1ib2wDV0JB?.tsrc=applewf


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[Prepharm1214]

Still within their original statements that they would divest up to 1000 stores, but predicted the number to be closer to 500. Not good for pharmacists as a whole. From your title line you make it seem as though all of them will be Rite Aid stores, I think a fair number of the stores divested could be Walgreen stores as well.

 

[Dred Pirate]

hopefully sell, not close - then maybe some dude with deep pockets can open up their own chain... highly doubtful though

 

[gwarm01]

Smoke em if you got em, folks. Things just got worse.

 

[WVUPharm2007]

I wonder how many laid off pharmacists will be couragous enough to simply open their own pharmacies where their current store is shutting down...built in clientele...built in staff...

 

[BMBiology]

Still within their original statements that they would divest up to 1000 stores, but predicted the number to be closer to 500. Not good for pharmacists as a whole. From your title line you make it seem as though all of them will be Rite Aid stores, I think a fair number of the stores divested could be Walgreen stores as well.

Most of the stores will be Rite Aid. If they are close to each other, it doesn't make sense to close a Walgreens and then spend $$ to convert a Rite Aid into Walgreens. Might as well close the Rite Aid and take its patient file.


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[WVUPharm2007]

Most of the stores will be Rite Aid. If they are close to each other, it doesn't make sense to close a Walgreens and then spend $$ to convert a Rite Aid into Walgreens. Might as well close the Rite Aid and take its patient file.


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That won't always be true. If the Rite Aid has better numbers (location, sales, etc) they will most certainly be keeping it open instead.

 

[ChalupaBatman86]

CVS will offer to buy the pharmacies inside the Rite-Aid stores.

 

[PharFromNormal]

They have to sell not close 500-1000 stores. Closing does not satisfy the intent of the divestiture of ensuring a competitive marketplace. They need to sell to someone the govt feels is capable of operating the stores and competing. Where closing might occur is on top of this 500-1000 in already competitive marketplaces where they wish to consolidate operations.

 

[Michael_Scott]

who will they sell it to...CVS ....man, pharmacy is a hot mess....this is what happens when you have pharm schools in every other corner...

 

[PharFromNormal]

who will they sell it to...CVS ....man, pharmacy is a hot mess....this is what happens when you have pharm schools in every other corner...

Krogers been the latest rumor... One could speculate a private equity firm but regulators would need to be convinced of the firms ability to operate. Doubt CVS but maybe a few in some markets if they are weak. I would think CVS doesn't want this to go through as then they would lose claim as biggest chain for network design but I bet they will look to gain something from the disruption.

 

[Michael_Scott]

Krogers been the latest rumor... One could speculate a private equity firm but regulators would need to be convinced of the firms ability to operate. Doubt CVS but maybe a few in some markets if they are weak. I would think CVS doesn't want this to go through as then they would lose claim as biggest chain for network design but I bet they will look to gain something from the disruption.

that was meant to be a sarcastic comment ..CVS is terrible lol..anyways good point.

 

[6GodPharm]

I doubt they sell them to CVS unless it's an offer they simply can't refuse. Seems like CVS is just buying all of these pharmacy just to eventually close them and transfer files to the original CVS stores. These Target CVS can't be profitable. Why not just close them move the files and add script counts to the CVS's down the street. Add 100-150 scripts a day and just give the stores a few more tech hours. I see CVS buying these rite aids just to take patient profiles over to their stores and take the drugs.

 

[Michael_Scott]

I doubt they sell them to CVS unless it's an offer they simply can't refuse. Seems like CVS is just buying all of these pharmacy just to eventually close them and transfer files to the original CVS stores. These Target CVS can't be profitable. Why not just close them move the files and add script counts to the CVS's down the street. Add 100-150 scripts a day and just give the stores a few more tech hours. I see CVS buying these rite aids just to take patient profiles over to their stores and take the drugs.

there will be strikes and/or pharmacists unionizing ....that would be an insane amount of load on the pharmacies than it already is...CVS's are criminally understaffed

 

[6GodPharm]

there will be strikes and/or pharmacists unionizing ....that would be an insane amount of load on the pharmacies than it already is...CVS's are criminally understaffed

It's a pretty unsafe company imo. I see dispensing errors left and right. I think they'll add tech help, and possibly overlap if that happened

 

[steveysmith54]

Jeez, wonder what will happen to these RPh. Lay offs? Major cut in hours? Yet we have four NEW schools in CA who have yet to graduate their first class...Pharmageddon is upon us... All we see is the folks at APhA, i mean Chapman, keep drinking that Provider Status Kool Aid..

 

[Momus]

there will be strikes and/or pharmacists unionizing ....that would be an insane amount of load on the pharmacies than it already is...CVS's are criminally understaffed

Wag doesn't tolerate union BS. Even if employees are unionized and going on strike due to whatever reason, they have enough FU money to pay $100/hr for temps as long as they want until employees croak.

 

[Momus]

I doubt they sell them to CVS unless it's an offer they simply can't refuse. Seems like CVS is just buying all of these pharmacy just to eventually close them and transfer files to the original CVS stores. These Target CVS can't be profitable. Why not just close them move the files and add script counts to the CVS's down the street. Add 100-150 scripts a day and just give the stores a few more tech hours. I see CVS buying these rite aids just to take patient profiles over to their stores and take the drugs.

You never hear location location location? You can't fix people laziness. CVS isn't dumb. If they get a piece of RE next to wag, they will hold on and compete. You can't gain market share simply by buying, closing shop, and hoping your patients drive 3 miles to go to where ever you are especially when there is a perfectly good standing wag operating there. This is drug dealing 101. Protect your corner.

 

[WVUPharm2007]

You never hear location location location? You can't fix people laziness. CVS isn't dumb. If they get a piece of RE next to wag, they will hold on and compete. You can't gain market share simply by buying, closing shop, and hoping your patients drive 3 miles to go to where ever you are especially when there is a perfectly good standing wag operating there. This is drug dealing 101. Protect your corner.

 

[Lnsean]

As a rite aid shareholder I am happy....but as a pharmacist...this is really a big blow to the profession. More consolidation and less competition for workers----these chains will have such huge leverage over their pharmacists now. Walgreens is in the process of trying to do away with their 2-hour pharmacist overlap---I feel this is coming....there is some new labor module that they are trying to implement which is gonna lead to that.

 

[Carol is Alpha]

The corner is going to come to you.

http://www.bloomberg.com/news/artic...ming-to-campus-in-test-of-alphabet-s-delivery

This is going to be such a clusterf*ck. Burrito by drone? Burritos? Whole new scam to arise. Drone chasers just like thieves that follow UPS trucks.

And what happens if you're not happy with your bean burrito? What's the return policy? You know what's going to happen. Before the robots are in place, Chipotle is going to have these burritos pre-made first thing in the morning, sitting under a heat lamp waiting for the lunch rush. Drone delivers a watered down coke and mushy burrito laden with bacterial growth. Then people will realize, hey, they sell beans in a can and wraps in a packet. There's sour cream at the store too. How frickin hard can it be to slap together a bean burrito for pennies on the CMG dollar? The CMG burrito scam ends, company rebrands itself as a lithium miner.

 

[imcallingcorp]

i hate to jump on a doom of pharmacy post cuz i know how much that upsets the deniers on this site. but as an independant owner this **** is all messed up. this merger will just make a bad situation worse. as is indies will be closing 1 after another if current reimbursements/ audits / dir fees etc.. continue. supermarkets will realize they are just bleeding money and wasting store space and we will be left with cvs hellmark and the corner of hell and hot. but hey maybe something will change ??? what are the chances?

 

[imcallingcorp]

oh and who is stupid enough to buy those sold of stores ? lol. unless they find some people who really hate money. no one

 

[Carol is Alpha]

You'd be shocked at just much stupid money is out there. There are brokers that specialize just in pharmacy commercial real estate. The chains have been quietly divesting for awhile. A lot of this has to do with with 8 years of ZIRP. All the old bonds and CDs that had a yield have matured and the money has to reach for yield.

 

[WVUPharm2007]

In Quakertown PA on Route 309, they were building a new Walgreens down the street from a Rite Aid. It sits empty right now. For lease sign out front. Some guy opened an independent across the street. Parking lot always has cars on it. Snatched that market share straight from the ether.

 

[imcallingcorp]

In Quakertown PA on Route 309, they were building a new Walgreens down the street from a Rite Aid. It sits empty right now. For lease sign out front. Some guy opened an independent across the street. Parking lot always has cars on it. Snatched that market share straight from the ether.

not asking this to be rude. but have you seen reimbursement at a private? just because he has customers and is filling rxs doesn't mean hes making a dime. have you seen dir fees? imagine opening a letter telling you that $50k will be taken back from you just for doing your job. oh and then get an audit and lose full cost on meds because of clerical errors. realize that the current market will destroy the over 20,000 indies across the country unless something changes big time. talk about unemployment we aint seen nothing

 

[WVUPharm2007]

not asking this to be rude. but have you seen reimbursement at a private? just because he has customers and is filling rxs doesn't mean hes making a dime. have you seen dir fees? imagine opening a letter telling you that $50k will be taken back from you just for doing your job. oh and then get an audit and lose full cost on meds because of clerical errors. realize that the current market will destroy the over 20,000 indies across the country unless something changes big time. talk about unemployment we aint seen nothing

Yet I see independent pharmacies that seem to be doing rather well all around me.

 

[Lnsean]

not asking this to be rude. but have you seen reimbursement at a private? just because he has customers and is filling rxs doesn't mean hes making a dime. have you seen dir fees? imagine opening a letter telling you that $50k will be taken back from you just for doing your job. oh and then get an audit and lose full cost on meds because of clerical errors. realize that the current market will destroy the over 20,000 indies across the country unless something changes big time. talk about unemployment we aint seen nothing

People keep saying that but I have seen a good number pop up over the years and have remained in business. Maybe they're doing shady cash fills for narcotics? Who knows...

 

[gwarm01]

imagine opening a letter telling you that $50k will be taken back from you just for doing your job. oh and then get an audit and lose full cost on meds because of clerical errors.

Stuff like this is completely insane. It's unbelievable that these companies are allowed to operate like this with no oversight or regulation.

 

[waiter]

Why is Rite Aid still opening new stores? New store in Union City, PA opening tomorrow ???

 

[Lnsean]

Why is Rite Aid still opening new stores? New store in Union City, PA opening tomorrow ???

it was probably already planned way before

 

[Dred Pirate]

Why is Rite Aid still opening new stores? New store in Union City, PA opening tomorrow ???

walgreens just opened one across the street from a newish Rite AId in my area within the past month or two - obviously one will close or be sold.

Ironically on the other side there is a CVS (3 retail chains all on the same intersection) and on the fourth side there is a grocery store with a pharmacy.

 

[aznkukuboi]

What I don't understand after the merger is how it pans out for the big 3 in one corner. In my city there's CVS, RA, and Wags on the same street all at an intersection. Each pharmacy does 3-4000 scripts a week. You close a RA and you expect the Walgreens to absorb and fill 6000? That's not going to happen. There's no room in a pharmacy to stock that and the amount of chaos and misfills will be out of control.

 

[Momus]

What I don't understand after the merger is how it pans out for the big 3 in one corner. In my city there's CVS, RA, and Wags on the same street all at an intersection. Each pharmacy does 3-4000 scripts a week. You close a RA and you expect the Walgreens to absorb and fill 6000? That's not going to happen. There's no room in a pharmacy to stock that and the amount of chaos and misfills will be out of control.

Why do you think they gonna close a store that does 4k?

 

[BidingMyTime]

What I don't understand after the merger is how it pans out for the big 3 in one corner. In my city there's CVS, RA, and Wags on the same street all at an intersection. Each pharmacy does 3-4000 scripts a week. You close a RA and you expect the Walgreens to absorb and fill 6000? That's not going to happen. There's no room in a pharmacy to stock that and the amount of chaos and misfills will be out of control.

Then they will probably leave both stores open. Walgreens already has very busy stores across from each other.

 

[pezdispenser]

Fred's To Buy 865 Stores From Rite Aid For $950 Mln
http://www.nasdaq.com/article/freds...e-aid-for-950-mln--quick-facts-20161220-00382

 

[pezdispenser]

The deal may be approved soon:
http://nypost.com/2017/01/10/walgreens-rite-aid-merger-expected-any-day-now/
http://www.investors.com/news/walgreens-rite-aid-merger-ok-seen-before-trump-takes-office/

I'm guessing Rite Aid pharmacists should start feeling nervous pretty darn soon. Either get converted to a Fred's dollar store, absorbed into Walgreens, or maybe even get laid off.

 

[waiter]

The deal may be approved soon:
http://nypost.com/2017/01/10/walgreens-rite-aid-merger-expected-any-day-now/
http://www.investors.com/news/walgreens-rite-aid-merger-ok-seen-before-trump-takes-office/

I'm guessing Rite Aid pharmacists should start feeling nervous pretty darn soon. Either get converted to a Fred's dollar store, absorbed into Walgreens, or maybe even get laid off.

I do believe it will be approved this week or next. Rite Aid stock is recovering. This week is JP Morgan Healthcare forum. New administration coming on board. There are now job postings for FREDs pharmacists so this thing is going to happen. I have no insider knowledge. I have no relevant holdings.

 

[maria1oh]

http://www.cnbc.com/2017/01/20/walg...as-regulatory-fears-cast-doubt-on-merger.html

 

[sosoo]

if the merger falls apart in the next week or two, walgreens will have to pay hundreds of millions of dollars in termination fee to Rite Aid.

 

[297point1]

And I thought this merger was going to be approved within two weeks of the inauguration.

The Rite Aid guys I know at HQ seemed pretty upbeat when I was in touch with them last week. Who knows? I think it really is a coin toss at this point.