Boy this is sad, a few months ago Rite-Aid was told the stock needed to be up over a dollar and it does not appear to be headed in that direction at 40 cents a share today. It looks like the number of retail drug stores is beginning to shrink as well. BD
Partly because of the economic crisis, Walgreen has slowed the rate at which it is opening new stores. But the company isn’t shying away from scooping up stores that rivals are putting up for sale.
On a conference call this morning, Walgreen CEO Greg Wasson pointed out that the company agreed last week to buy 32 Drug Fair pharmacies, and to buy the prescription business from another 11 of the company’s New Jersey stores. The Drug Fair Group, which was founded in 1954, recently filed for bankruptcy protection, Dow Jones’s LBO wire reported last week.
In a similar move, Walgreen agreed last month to buy 12 Rite-Aid locations in San Francisco and Eastern Idaho. Rite-Aid has been struggling with a big debt load; the company’s shares opened at 40 cents today, down 87% from a 52-week high of $3.03.