News

Walgreens to shutter 600 stores by next spring as part of Rite Aid purchase

BY Marianne Wilson

DEERFIELD, Ill. — Walgreens Boots Alliance expects to shutter about 600 stores in the wake of its purchase of 1,932 stores from rival Rite Aid.

The closings will start next year and take place over 18 months, Walgreens CFO George Fairweather said on the chain’s quarterly earnings call. The stores marked for closing will mostly be Rite Aid locations. The retailer expects to close stores within a mile of another Walgreens or Rite Aid location.

Walgreens won regulatory approval in September to buy 1,932 stores and three distribution centers from Rite Aid for $4.38 billion.

In its quarterly earnings report released Wednesday, Walgreens said the first few Rite Aid locations have been acquired in the past week. Ownership of the remaining stores is expected to be transferred in phases and be completed by spring 2018.

Walgreens expects to complete the integration of the acquired stores and related assets within the next three years for an estimated cost of approximately $750 million, which will be reported as acquisition-related costs. The company also plans to spend approximately $500 million of capital on store conversions and related activities.

During the company’s quarterly earnings call, leadership highlighted Walgreens’ commitment to a fluid go-to-market strategy that is constantly evaluating customer behavior.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

DSN brings together top industry innovators, experts for 19th Industry Issues Summit

BY DSN STAFF

Call it a meeting of the minds. 

The annual Drug Store News Industry Issues Summit — taking place in New York City at the Plaza on Nov. 29 — is fast-approaching, and ahead of the event, Drug Store News has announced another top-tier roster of some of the most innovative and talented retail executives in the business for the thought leadership and networking event.

Now in its 19th year, the DSN Industry Issues Summit brings together the top pharmacy retailing, pharmaceutical, consumer packaged goods manufacturers and technology companies to discuss emerging industry trends, coming challenges and the opportunities that influence the most important business decisions facing panelists and attendees. The panels bring real-world insights to help drive sales and strengthen retailer-supplier relationships.  strengthening relationships between retailers and suppliers.

In addition to a keynote from former White House Press Secretary Ari Fleischer, the event will feature five panels whose topics and participants are:

Enabling Patient-Facing Care: McKesson’s Chris Dimos will moderate a panel featuring Walgreens’ Rick Gates, Thrifty White’s Tim Weippert, CVS Health’s Kevin Hourican, BD’s Anne Messing, SupplyLogix’s Rick Sage, Innovation’s Doyle Jensen and Perceptimed’s Frank Maione.

Payer Partnerships and Delivering Outcomes: Hamacher Resource Group’s Dave Wendland will moderate a discussion between The Little Clinic’s Dr. Marc Watikins, UnitedHealthcare’s Shannon Huneke, Rite Aid’s Jocelyn Konrad, Walmart’s Alex Hurd, Johnson & Johnson’s Geoff Betru, PioneerRx’s Jeff Key and Vicki Harter of higi.

Chronic Care Patient Management: Independent consultant Andre Persaud will moderate a panel featuring Health Mart’s Crystal Lennartz, H-E-B Pharmacy’s Leon Nevers, Costco’s Becky Dant, Cardinal Health/Medicine Shoppe International’s Todd Treon, QS/1’s Saul Factor, Smart Meter’s Brahim Zabeli and BD Diabetes Care’s Marcus Silva.

Bridging the Gap Between Pharmacy and the Front Store: PhileciaDayle’s Philecia Avery will moderate a panel featuring Thrifty White’s Tim Weippert; H-E-B Pharmacy’s Craig Norman; Rite Aid’s Tammy Royer, Cardinal Health’s John Fiacco, Menasha’s Paul Murphy and Inmar’s Lari Harding.

7 Ideas that Matter: Mack Elevation’s Dan Mack will moderate a panel featuring CVS Health’s George Coleman, Sam’s Club’s Jill Turner-Mitchell, AmerisourceBergen’s Tim Buskey, Walgreens’ Robert Tompkins, Walmart’s Annie Walker and Target’s John Peine.

“The Drug Store News Industry Issues Summit is part of our commitment to providing timely, topical and engaging industry events where retailer and supplier industry leaders gather to discuss co-creation strategies and partnership opportunities,” Drug Store News publisher Eric Savitch said. “This event helps attendees set their agendas for the coming year.”

To register or for more information, visit dsnindustryissues.com. For sponsorship opportunities, contact DSN publisher Eric Savitch, [email protected].

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

Peapod makes its home in the Windy City

BY Michael Johnsen

CHICAGO — Chicago Mayor Rahm Emanuel on Wednesday joined Peapod to announce the company is relocating its headquarters to downtown Chicago at 300 S. Riverside Plaza.

"Peapod is a national leader in both the food and tech industries and will be a strong addition to Chicago's thriving innovation community," Emanuel shared during a press conference. "In Chicago, the company can continue to expand, create new jobs and contribute to our growing economy."

"Over the last 28 years, Peapod has revolutionized the way people across the nation shop for groceries," said Illinois Gov. Bruce Rauner.  "My administration is proud to work with companies that embrace innovation and push our economy forward. I will continue to work hard to support great companies and make our state an even better place to do business."

"Since Peapod was founded in Chicago in 1989 as the country's first online grocer, we have always considered this city our home," Walt Lentz, acting president of Peapod said. "Moving our headquarters downtown will allow us to become a bigger part of the Chicago business community and invest in the city's diverse pool of talent while also growing our business throughout the country."

The new location is expected to be complete in the spring of 2018, at which time the headquarters will transfer from the current Skokie, Ill. location. All employees at Peapod's current Skokie headquarters will be relocating to the new Chicago headquarters.

With the move Peapod joins a number of other food industry leaders that have relocated to Chicago, including McDonald's, Conagra Brands, ADM, Mead Johnson, Beam Suntory, Kraft Heinz and Oscar Mayer.
 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES