Walgreens takes over Rite Aid

Walgreens takes over Rite Aid

Combo will spread drugstore health kick

The Associated Press

Walgreens will use its $9.41 billion takeover of rival Rite Aid to spread its philosophy on making drugstores destinations for customers looking to stay healthy or buy beauty products.

The nation’s largest drugstore chain also is expected to flex its beefed-up negotiating muscle to wring better deals from drugmakers and other suppliers. But experts say those discounts won’t automatically trickle down to consumers.

In fact, customers may not see a huge impact on their wallets if the deal announced Tuesday evening goes through. But they will likely see some store closures or name changes and fewer brand choices after Walgreens Boots Alliance Inc. adds the nation’s third-largest drugstore chain to its portfolio.

They also may see more clinics in Rite Aid Corp. stores and more products like vitamins and supplements aimed at keeping them healthy, as the sector continues to stretch well beyond simply filling prescriptions.

All the major drugstore chains — Walgreens, CVS Health Corp., and Rite Aid — have been revamping their stores for the past few years to make them bigger providers of health care products and other services. They’re trying to appeal to customers who want to do more one-stop shopping and take advantage of the vast network of stores that the chains have built.

By Tom Murphy