Albertsons is buying the drugstore chain Rite Aid as retailers continue to plunge deeper into health care and adjust to swiftly changing shopping habits.
Albertsons, the owner of Safeway and other grocery brands, said Tuesday its purchase of Rite Aid’s more than 2,500 remaining stores will help the combined company become a “leader in food, health and wellness.” The combination will have some 4,900 stores stores and more than 4,300 pharmacies with a stronger presence on both coasts of the U.S. market.
Leaders of both companies said the deal will help attract pharmacy customers who tend to spend more at Albertsons grocery stores. That comes as the grocer starts to strengthen same-day deliveries, a meal-kit business, and other products that cater to customers who want fast service.
Retailers have been pushing home deliveries and other customer-friendly services in the wake of expanded competition from Amazon.
In Rite Aid, Albertsons is buying a chain that has already remodeled more than half of its stores into a format that includes expanded pharmacy services and more health products. Rite Aid also operates walk-in clinics that can deal with cases of the flu, and other relatively minor complaints.
It also has a pharmacy benefit management business that runs prescription drug coverage.
Boise-based Albertsons said it will continue to run Rite Aid stand-alone stores, and most of the grocery operator’s pharmacies will be rebranded as Rite Aid. Albertsons also runs Jewel-Osco, Shaw’s, Vons and Acme stores.
The companies say the deal should close in the second half of this year, but regulators and Rite Aid shareholders still have to approve it. (AP, Idaho Statesman)
