What Albertsons Purchase of Rite Aid Means for Drug Retail
Albertsons is buying a big portion of Rite Aid to create a company worth $24 Billion. Shares of Rite Aid soared as much as 8 percent on the news. This acquisition comes as many retailers join forces to compete with Amazon, which is involved in nearly every industry from retail, to grocery, and now even healthcare. Wall Street Journal Reporter Heather Haddon and Bold Media's Business Editor David Grasso explain what this deal means for drug retail.
"Rite Aid was really put at a disadvantage right after the stuttered Walgreens deal," says Haddon. "This was really about Rite Aid helping to reposition themselves, get access to a whole new market of Albertsons customers, and in turn Albertsons gets a lot of pharmacy customers and cross-marketing opportunities."
"We are seeing a lot of disruption, and everyone is shaking in their boots," says Grasso. "It's all about survival.
Through this deal the integrated company will operate 4,900 locations, 4,350 pharmacy counters, and 320 clinics across 38 states and Washington, D.C.
Apple CEO Tim Cook said Thursday that the majority of iPhones sold in the U.S. in the current fiscal quarter will be sourced from India, while iPads and other devices will come from Vietnam as the company works to avoid the impact of President Trump’s tariffs on its business. Apple’s earnings for the first three months of the year topped Wall Street’s expectations thanks to high demand for its iPhones, and the company said tariffs had a limited effect on the fiscal second quarter’s results. Cook added that for the current quarter, assuming things don’t change, Apple expects to see $900 million added to its costs as a result of the tariffs.
