Brooks Sale

[Cotuit]

Brooks sale: Who wins? Who loses? The acquisition of the Brooks and Eckerd chains by Rite Aid could mean the loss of hundreds of jobs in Rhode Island. [ProJo.com]

Rite Aid has not addressed questions about Brooks new HQ currently under construction in Warwick, or what if any job losses may result in Rhode Island as a result of the merger and consolidation.

[runawayjim]

or what jobs will be lost in RI?

i really hope they don't take too many jobs out of RI...

[mental757]

well, we lose the HQ title for sure and they intend NOT to even fill the new building when ready - they might use if for a regional HQ or a call center. My only hope is that we fare well on the job front. At this point, I'm almost prefferring they just use the Post and Jefferson locations and have the EDC market the new EG facility to someone else with more potential to add jobs/expand in RI...

[MikeR]

well, we lose the HQ title for sure and they intend NOT to even fill the new building when ready - they might use if for a regional HQ or a call center. My only hope is that we fare well on the job front. At this point, I'm almost prefferring they just use the Post and Jefferson locations and have the EDC market the new EG facility to someone else with more potential to add jobs/expand in RI...

757's post pretty much sums it up. The East Greenwich HQ bldg. is gone for sure. EDC will have to go out and market the building. The Post and Jefferson locations can be call centers or redundant IT server farm locations.

[Garris]

This was really depressing news, BTW. A real blow in both economic terms and prestige. At least no tax breaks had yet changed hands (and won't now) for the new HQ building. Some states get hit with that double blow... Millions in breaks given, a company is bought and then never moves in...

To finance oriented folks, is there any chance that the anti-trust powers could frown on this merger? (I know, they're asleep in the age of Bush, but still...) I seem to recall anti-trust being an issue when Brooks perchaced Eckert Pharmacies. I mean, how many major nationwide pharmacy chains are there now? Two? Rite-Aid and CVS? Duane Reed and the like are regional powers only. Who's left?

- Garris

[yossarian]

This was really depressing news, BTW. A real blow in both economic terms and prestige. At least no tax breaks had yet changed hands (and won't now) for the new HQ building. Some states get hit with that double blow... Millions in breaks given, a company is bought and then never moves in...

To finance oriented folks, is there any chance that the anti-trust powers could frown on this merger? (I know, they're asleep in the age of Bush, but still...) I seem to recall anti-trust being an issue when Brooks perchaced Eckert Pharmacies. I mean, how many major nationwide pharmacy chains are there now? Two? Rite-Aid and CVS? Duane Reed and the like are regional powers only. Who's left?

- Garris

It is not that there are now fewer nationwide pharmacy chains, but rather that consolidation of several regional chains has created a very new phenomen of nationwide or semi-nationwide chains. Like the grocery industry, until recently there have been few if any chains with a truly nationwide presence. Even the newly formed Brooks/Rite Aid chain will still have virtually no presence in the heartland. So any anti-trust issues have to be looked at a regional level and could would be fixed by Rite-Aid divesting itself of certain groups of stores. I believe this is why CVS and Brooks split up Eckerd.

[runawayjim]

It is not that there are now fewer nationwide pharmacy chains, but rather that consolidation of several regional chains has created a very new phenomen of nationwide or semi-nationwide chains. Like the grocery industry, until recently there have been few if any chains with a truly nationwide presence. Even the newly formed Brooks/Rite Aid chain will still have virtually no presence in the heartland. So any anti-trust issues have to be looked at a regional level and could would be fixed by Rite-Aid divesting itself of certain groups of stores. I believe this is why CVS and Brooks split up Eckerd.

didn't CVS buy (or want to buy) some grocery chain in the midwest (i can't remember the name, but i think it started with an A)?

[CtownMikey]

cvs purchased 700 albertsons stores this year making it #1 in the nation for store count.

AS OF NOW...

CVS

with about 6200 stores and sales of 38 billion in 2005 it ranks #2 in sales and #1 in store count . building maybe 100-200 stores a year on their own. so far in 2006, including the entire eckerd and albertsons acquisition, CVS still lags behind walgreens in sales despite the fact that they have almost 800 more pharmacies.

WALGREENS

with about 5450 stores and sales of 42 billion in 2005 it ranks #1 in sales and #2 in store count. building about 400-500 stores a year.

rite aid now has just over 5000 stores and they estimate the total sales with the acquisition to be around 30 billion for next year (dont forget they will probably close a good chunk of locations) and will now be the 3rd largest in store count and sales.

CVS is the acquirer in the league.. so they seem like they could do a rite aid takeover in about 3 to 4 years when rite aid fails to acquire these stores (it will).

walgreens grows internally with the exception of very small acquisitions here and there maybe once every few years. It aims to have 7000 stores by 2010, and sees fit for 10-12k stores in the years beyond 2010

sorry to say that cvs is from RI, b/c they are a terrible company. I wish walgreens were from here because they are and will always be in the lead. Clean business, treats employees well, pays more, and is technologically ahead of the other two.... in a huge way. PLUS i work there

for an example of conveinience... if you were to go to a walgreens here in cranston, then move to florida or puerto rico, you can walk into the walgreens, and treat it like the cranston store. Our satellite system connects every store into one network, making refills and emergencies an easy thing. CVS on the other hand requires you to register into every new CVS if you are filling something new or just a refill. The process is ridiculous.

[yossarian]

didn't CVS buy (or want to buy) some grocery chain in the midwest (i can't remember the name, but i think it started with an A)?

Yes, but this doesn't change the antitrust analysis. When CVS acquires another chain, the other chain typically serves a market where CVS has a limited or nonexistent presence. In other words CVS's large scale acquisitions have not been of direct competitors, but instead, as CtownMikey explained, they represent the core of CVS's expansion plan. My point was that except in a few regional markets those acquisitions do not limit customer choice. Brooks sale is a good example. I can't recall ever having seen a Rite Aid in RI or Mass. So we are still left with the same number of pharmacies from which to choose, one just now has a new name. We have not yet witnessed one nationwide chain acquire another nationwide chain. Contrast that to the long distance telephone market, when MCI and Sprint proposed to merge. This is not to say that there are not some areas of overlap. Here is a map from Rite Aid's investor presentation. I count 8 or 9 states where both chains have a substantial presence.

Merger Map

Those are the places where antitrust concerns could result in divestment. But other than targeted divestment the FTC is not going to block the merger. If CVS acquires Rite Aid, as Ctown predicts, that is a whole different ball game.

[MikeR]

sorry to say that cvs is from RI, b/c they are a terrible company.

Gawd, you got that right. I worked at the CVS HQ for 10 months in Woonsocket. Four months into the job I could not wait to get out. Worst experience at a job I ever had.

[Cotuit]

Merger Map

They spelled Worcester with an 'h' in it.

[basachs]

I mean, how many major nationwide pharmacy chains are there now? Two? Rite-Aid and CVS? Duane Reed and the like are regional powers only. Who's left?

- Garris

I would not forget about Wal-mart and Target pharmacies. They are major players in this area. I used to use Target as my pharmacy when I was in the 'burbs and it was a real convenience. Walk into any Target or Wal-Mart in the world and you can get a prescription filled.

[CtownMikey]

i tell you what I think about all of this.

There is really just a race for who can over saturate the U.S. with drug stores first. I feel that if CVS does this, they can finally focus on becoming a better company like Walgreens, and really become a comppany for us to be proud of.

2 things CVS has done that piss me off in our own state

1. bought property next to my walgreens to put up a CVS sign, disabling our store from building a drive-thru

2. CVS tried to make a deal with the state to 1. create a type of monopoly for filling all state workers prescriptions in RI, and 2. making deals with certain insurance companies to not allow customers to go anywhere but a CVS in our state.

number 1 and 2 has since been taken care of and now customers have a choice to go to any pharmacy they choose, and CVS has definately lost customers after this became possible. But it makes you wonder, how great can they be if they feel the need to force their customers to stay with them? Sooo I'm almost hoping that they acquire RITE AID, since they could possibly do it, and then they get their act together.

[runawayjim]

I would not forget about Wal-mart and Target pharmacies. They are major players in this area. I used to use Target as my pharmacy when I was in the 'burbs and it was a real convenience. Walk into any Target or Wal-Mart in the world and you can get a prescription filled.

the same can be said for CVS and brooks.

i'll probably move my prescriptions to CVS from brooks, mainly because they're more accessible where i tend to go.

[runawayjim]

i tell you what I think about all of this.

There is really just a race for who can over saturate the U.S. with drug stores first. I feel that if CVS does this, they can finally focus on becoming a better company like Walgreens, and really become a comppany for us to be proud of.

2 things CVS has done that piss me off in our own state

1. bought property next to my walgreens to put up a CVS sign, disabling our store from building a drive-thru

2. CVS tried to make a deal with the state to 1. create a type of monopoly for filling all state workers prescriptions in RI, and 2. making deals with certain insurance companies to not allow customers to go anywhere but a CVS in our state.

number 1 and 2 has since been taken care of and now customers have a choice to go to any pharmacy they choose, and CVS has definately lost customers after this became possible. But it makes you wonder, how great can they be if they feel the need to force their customers to stay with them? Sooo I'm almost hoping that they acquire RITE AID, since they could possibly do it, and then they get their act together.

the second thing is something a lot of municipal workers insurance forces them to do. i knew someone whose mom was a teacher (this was when she was on her mother's insurance) in CT. she could only go to eckerd, of which, there was only 1 in their area at the time. it's also common for insurance companies to make deals with certain pharmacies to get a better deal, making premiums cheaper.

while it's not a great practice, i don't think it's terrible if the state workers insurance forces them to go to CVS, supporting a local company.

[basachs]

the same can be said for CVS and brooks.

i'll probably move my prescriptions to CVS from brooks, mainly because they're more accessible where i tend to go.

At CVS, the prescription has to be transferred from store to store as CTownMikey indicated. I have done it twice and it is an unecessary pain in the ass.

I was really just replying to Garris's question regarding which nationwide pharmacies still exist. Target and Wal-Mart represent big players in this market. If I lived in the suburbs I would still have my prescriptions filled at one of these. If an urban Target came to be here in PVD, and I did not have to go to Warwick or Seekonk, I would switch back in a heartbeat.

[runawayjim]

At CVS, the prescription has to be transferred from store to store as CTownMikey indicated. I have done it twice and it is an unecessary pain in the ass.

I was really just replying to Garris's question regarding which nationwide pharmacies still exist. Target and Wal-Mart represent big players in this market. If I lived in the suburbs I would still have my prescriptions filled at one of these. If an urban Target came to be here in PVD, and I did not have to go to Warwick or Seekonk, I would switch back in a heartbeat.

it's a simple phone call you have to make to have the prescription transferred. but i agree... they should be on a computer system that allows you to get it filled at any CVS.

[Recchia]

2 things CVS has done that piss me off in our own state

1. bought property next to my walgreens to put up a CVS sign, disabling our store from building a drive-thru

You talking about the one on Park Ave in Cranston? I saw that the other day, its funny, here's a Walgreens on the street and then right up next to it a huge CVS sign with an arrow.

[CtownMikey]

exactly... that cvs is the second busiest in our state filling about 1000 a day. wakefield is rumored at 2000 a day!! the walgreens is having trouble pulling people from that store ..(about 150 a day).. even though the staff is sooo rude and they are soo busy, why not go to a better pharmacy with less wait time??

cranston folk just so crazy

so here is a lil gossip that i doubt would make a difference if i shared... for those of you who know the park/reservoir intersection. CVS bought the wendy's next door and plans to expand.. probably a huge 24 hr drive thru flagship store with plasma tv's like the one in wakefield.

walgreens in looking to buy the dunkin donuts plaza on the corner and turn it into the same 24 hr huge drive thru flag ship store.

both pharmacies have no drive thru at the moment, so the first one to finish getting one, will ultimately be the one to attract (walgreens) or keep forever (cvs) the cranston customers.

exactly... that cvs is the second busiest in our state filling about 1000 a day. wakefield is rumored at 2000 a day!! the walgreens is having trouble pulling people from that store ..(about 150 a day).. even though the staff is sooo rude and they are soo busy, why not go to a better pharmacy with less wait time??

cranston folk just so crazy

so here is a lil gossip that i doubt would make a difference if i shared... for those of you who know the park/reservoir intersection. CVS bought the wendy's next door and plans to expand.. probably a huge 24 hr drive thru flagship store with plasma tv's like the one in wakefield.

walgreens in looking to buy the dunkin donuts plaza on the corner and turn it into the same 24 hr huge drive thru flag ship store.

both pharmacies have no drive thru at the moment, so the first one to finish getting one, will ultimately be the one to attract (walgreens) or keep forever (cvs) the cranston customers.

[Recchia]

CVS bought the wendy's next door and plans to expand.. probably a huge 24 hr drive thru flagship store with plasma tv's like the one in wakefield.

walgreens in looking to buy the dunkin donuts plaza on the corner and turn it into the same 24 hr huge drive thru flag ship store.

Wait, so goodbye Wendys, DD, Spikes, and Papa Ginos?

This could actually be cool, if both stores built up to the street. It could reclaim some urbanity (?) on Reservoir and Park.

[jencoleslaw]

At CVS, the prescription has to be transferred from store to store as CTownMikey indicated. I have done it twice and it is an unecessary pain in the ass.

i think its a state law regarding the transfer, and my experience has been that if you transfer your prescription once, the second time you need a new paper script from the doctor.

i am currently at brooks because a good friend's daughter is the pharmacist there, but she's leaving so perhaps i'll transfer since the brooks at East Side Market isn't anywhere near Federal Hill. Maybe i'll just do drugstore.com for most of my meds.

[Cotuit]

There's an Osco at the Shaw's in Eagle Square.

[CtownMikey]

transfers differ between a controlled substance (percocet) and regular maintenance drugs (lipitor) some drugs can be transferred only a limited amount of times.

but with cvs it is amazing how so many rhode islanders go through the hassle with that company just because its what we are used to... when you can just go transfer to a walgreens and treat every store like your home store

[basachs]

i think its a state law regarding the transfer, and my experience has been that if you transfer your prescription once, the second time you need a new paper script from the doctor.

i am currently at brooks because a good friend's daughter is the pharmacist there, but she's leaving so perhaps i'll transfer since the brooks at East Side Market isn't anywhere near Federal Hill. Maybe i'll just do drugstore.com for most of my meds.

I cant wait for the walgreens to open on 333 Atwells so I can walk to a pharmacy. Walk! There's a city concept for ya!

[CtownMikey]

walgreens hopes to double its store count in ri in the near future... especially south county.

(still thinks a 24hr walgreens would be perfect on westminster)