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BUSINESSThursday 29 October 2015
Walgreens, Rite Aid combo to spread drugstore health kick
TOM MURPHY In this file photo made Dec. 15, 2009, a customer enters a Rite Aid store in Detroit. But Walgreens may have
AP Business Writer Associated Press to close hundreds of stores
Walgreens will use its $9.41 to ease federal regulatory
billion takeover of rival Rite chains — Walgreens, CVS health needs, as well as the ics and pharmacies. concerns about competi-
Aid to spread its philosophy Health Corp., and Rite Aid growing number of people Camp Hill, Pennsylvania- tion.
on making drugstores desti- — have been revamping who are shopping around based Rite Aid runs about That will depend on how
nations for customers look- their stores for the past few more for health care in- 4,600 drugstores in 31 states the deal changes the com-
ing to stay healthy or buy years to make them bigger stead of simply visiting their and the District of Colum- petitive balance in individ-
beauty products. providers of health care family doctors. And they’re bia. Its combination with ual markets.
The nation’s largest drug- products and other servic- fending off competition Walgreens would create Aside from the big chains,
store chain also is expect- es. They’re trying to appeal from grocery chains and a drugstore behemoth there are still about 22,000
ed to flex its beefed-up ne- to customers who want to big retailers like Wal-Mart that runs more than 12,700 independent pharmacies
gotiating muscle to wring do more one-stop shop- that have added thou- stores in the United States. in the United States, ac-
better deals from drugmak- ping and take advantage sands of pharmacies to That’s about 64 percent cording to the National
ers and other suppliers. But of the vast network of stores their stores and offer steep more than the next larg- Community Pharmacists
experts say those discounts that the chains have built. discounts on some drugs. est competitor, CVS, not Association. Around half
won’t automatically trickle Drugstores also are shifting CVS, in fact, is partner- counting that company’s are in rural or undeserved
down to consumers. to serve the aging baby ing with the retailer Target still-evolving partnership areas, spokesman John
In fact, customers may boom population and its Corp. to run its in-store clin- with Target. Norton said. That total in-
not see a huge impact on cludes pharmacies that
their wallets if the deal an- are part of small, privately
nounced Tuesday evening held chains and those that
goes through. But they will serve niche markets like a
likely see some store clo- hospital or a specialty such
sures or name changes and as oncology.
fewer brand choices after Once a Walgreens-Rite Aid
Walgreens Boots Alliance deal closes, the company
Inc. adds the nation’s third- will likely hold a “bit of a
largest drugstore chain to beauty contest” with sup-
its portfolio. pliers to see who can give
They also may see more them the best deals on
clinics in Rite Aid Corp. products sold in the front
stores and more products of their stores, or the area
like vitamins and supple- outside the pharmacy, said
ments aimed at keeping Paul Keckley, who studies
them healthy, as the sec- health care issues as man-
tor continues to stretch well aging director of the Navi-
beyond simply filling pre- gant Center for Health-
scriptions. care Research and Policy
All the major drugstore Analysis.q
UAW leaders approve
proposed contract with GM
In this July 13, 2015, file photo, United Auto Workers President workers. FCA. GM reported last agreement promises $1,000
Dennis Williams speaks as General Motors CEO Mary Barra, Like a previous contract week that it earned $1.36 per $1 billion of GM’s North
background left, listens during a ceremony to mark the open- ratified by Fiat Chrysler billion in the third quarter. American profits. FCA is
ing of contract negotiations in Detroit. workers, GM’s agreement FCA lost $339 million dur- giving workers $800 based
would eliminate a two-tier ing the quarter because on percentage gains in its
Associated Press wage system over eight of big recall costs in North North American margins.
years. America. GM’s proposed contract
DEE-ANN DURBIN bonus. “There were multiple things also offers $60,000 for up
AP Auto Writer Leaders from GM’s 63 U.S. GM currently pays re- we were able to do be- to 4,000 eligible employees
DETROIT (AP) — United facilities met in Detroit to cent hires around $15.78 cause of GM’s wealth,” Wil- who agree to retire next
Auto Workers leaders have discuss and vote on the per hour. Under the new liams said. spring. Williams said that is
approved a proposed agreement Wednesday. agreement, workers with Williams said lower-tier meant as a reward to long-
contract with General Mo- Now it must be ratified by four or more years of ex- workers — who make up time workers who stuck with
tors Co. that promises rais- GM’s U.S. hourly workers. perience will make the top 20 percent of GM’s hour- the company and gave up
es, improvements in health The four-year contract $29 hourly wage within four ly workforce — will now wages and benefits during
care and a hefty signing covers 52,600 GM factory years; workers with less ex- be eligible for traditional its 2009 bankruptcy.
perience would make be- health care benefits. Both The UAW and GM reached
tween $22.50 and $28 in tiers of workers would get the proposed agreement
four years and top wages an $8,000 signing bonus Sunday night just before
in eight years. if they ratify the contract, a deadline the union had
UAW President Dennis Wil- higher than the $3,000 and set to strike. Williams said
liams had promised — and $4,000 bonuses offered at he didn’t yet know when
won — richer benefits from FCA. And the profit-sharing workers will begin voting on
GM, which is a bigger and formula in GM’s proposed it.q
wealthier company than
