PHARMACY GIANTS VIE FOR DRUG DOMINION.Byline: Ben Sullivan Daily News Staff Writer Forget the mega-grocery chain that will be created by Monday's proposed merger of Albertson's Inc. and American Stores American Stores was the name of a United States chain of supermarkets. It was formed in 1917 when Acme Markets merged with four other Philadelphia area grocery chains into American Stores. American Stores would grow to 1,700 stores in 40 states with $15 billion in sales. Co. If completed, the deal overnight would make Albertson's the biggest operator of drugstores in the greater Los Angeles area The Greater Los Angeles Area, or the Southland, is the agglomeration of urbanized area around the city of Los Angeles, California, United States. There are two "official" definitions—the Los Angeles metropolitan area consisting only of the Los Angeles and Orange , and one of the largest drugstore and pharmacy operators in the nation. In addition to gaining 808 grocery stores, one-third of which have in-store pharmacies, Albertson's will acquire 750 stand-alone drugstores, including the Sav-on and Osco Drug Osco Drug is a chain of pharmacy stores which operate under Supervalu Pharmacies. Most Oscos currently can be found in Jewel supermarkets. Since 2006, Osco is a wholly owned subsidiary of Supervalu Pharmacies of Eden Prairie, Minnesota-based Supervalu. chains. Sav-on dominates the Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, market, with 276 of its 312 stores located in the region. The new heft represented by the combination of in-store pharmacies and stand-alone stores would add fuel to an already fierce firefight fire·fight n. An exchange of gunfire, as between infantry units. between the Sav-on and Rite Aid Rite Aid (NYSE: RAD) is a United States retailer and pharmacy chain, operating over 5,000 stores in 31 states and the District of Columbia. Rite Aid Corporation is one of the nation's leading drugstore chains. chains for the hearts and wallets of Southern California shoppers. Even before Monday's announcement, American Stores and Rite Aid had each announced plans to dominate the Southland, and with good reason: The Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. metropolitan region is the second-largest market for the $125 billion of prescription drugs, over-the-counter medicines, and health and beauty aids that U.S. chain drugstores sell each year. Toward its goal, Rite Aid said it would open eight new stores in Los Angeles by October 1998, bringing its local total to 80, and starting in 1999 would open 100 new West Coast stores a year through 2004. The company also has begun renovating dozens of stores left dowdy dow·dy adj. dow·di·er, dow·di·est 1. Lacking stylishness or neatness; shabby: a dowdy gray outfit. 2. Old-fashioned; antiquated. n. pl. by a string of previous owners. Meanwhile, American Stores said last fall it planned to open seven new Sav-ons in Los Angeles and will add pharmacies to all new and many existing Lucky stores. Though a newcomer to the stand-alone market, Albertson's has indicated it plans to follow in American Stores' footsteps. ``We're very committed to the (drugstore) customer,'' said Albertson's spokeswoman Jenny Enochson. Though the company cannot guarantee it will keep all existing Sav-on or Osco Drug stores open, Enochson said Albertson's anticipates operating the majority of the stores. And that could spell trouble for Rite Aid. ``It's a little early to know (Albertson's) intentions,'' said analyst Sally Wallick at investment bank Legg Mason Wood Walker, ``but they're a much larger company as a result of this merger and should have greater buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. . That could mean better bargains for consumers. ``I don't think Rite Aid will be losing sleep over this right now, because it's so early, but they're surely aware of it, are analyzing it and thinking about how it's going to affect them.'' DRUG WARS A combined Albertson's and American Stores Co. would dominate the Los Angeles drugstore and pharmacy markets and challenge Rite Aid Corp. on a state and national level. COMPANY GREATER L.A. STATE NATION Albertson's (xx) 301 486 1,619 Rite Aid 72 673 3,900 (xx) After the company purchases American Stores Co.; includes in-store pharmacies. SOURCE: Albertson's Inc; American Stores Co.; Rite Aid Corp. CAPTION(S): Box BOX: DRUG WARS (See text) |
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