DEERFIELD, Ill. — Walgreens announced plans to close more than half of the stores it is acquiring in its deal with USA Drug.
The company — which said in July it would purchase the mid-South drug store chain for approximately $438 million — confirmed it would close approximately 76 stores across the region. USA Drug operates 144 stores under the USA Drug, Super D Drug, May's Drug, Med-X and Drug Warehouse banners.
"Although we have not completed the purchase of the USA Drug chain, we are taking steps in anticipation of the completion of the transaction, which is expected to occur in mid-September," Walgreens spokesman Jim Graham told DSN. "After careful planning and market analysis, on Monday we began to notify employees of our intent to close [the stores]. Our decisions about store closures are based on a number of considerations, including size of the market and proximity to other Walgreens and USA Drug stores and affiliates. We expect to close the stores by November."
In its initial acquisition announcement, Walgreens said that the acquired drug stores would continue to operate under their current brand names after the transaction closes, and decisions would be made over time regarding the best, most effective way to harmonize Walgreens and the acquired brands.
"When a store is closed, all its prescription drug customers will be notified of the location of a nearby Walgreens or USA Drug-affiliated store where their prescription information will be transferred," Graham noted. "No other action is needed by pharmacy customers to have their existing prescriptions filled at any Walgreens store."
USA Drug ranked No. 31 on the DSN PoweRx 50, with projected pharmacy sales of approximately $409 million in 2011. For a complete USA Drug profile, see DSN PoweRx Players 2012.