Rite Aid acquired twenty-four Hooks Drug stores from Revco in 1994, selling nine of those stores to Perry Drug Stores, a Michigan-based pharmacy chain. One year later, the 224-store Perry chain itself was acquired by Rite Aid. The 1,000-store West Coast chain Thrifty PayLess was later acquired in 1996. The acquisition of Thrifty PayLess included the Northwest-based Bi-Mart membership discount stores, which was sold off in 1998. Acquisitions of Harco, Inc. and K & B Inc. brought Rite Aid into the Gulf Coast area.
In the fall of 1999, Rite Aid was the subject of several media reports about its aggressive marketing of pharmaceutical products and other consumer-unfriendly practices, including selling date-sensitive products well past the due dates. Rite-Aid is the largest pharmacy chain in California. It has recently been investigated by government regulators in California, Washington, and Oregon. Consumer Complaints Regarding Rite Aid Pharmacy
Rite Aid also had a major accounting scandal that led to the departure (and subsequent jail time) of several top ranking executives, including the CEO, Martin Grass, son of company founder Alexander Grass. At the time, Rite Aid had just acquired Thrifty Payless Drug and was integrating those into the company. As a result, Leonard Green, who ran the investment firm that had sold those stores to Rite Aid took control of the company and placed Mary Sammons from Fred Meyer in as CEO. Sammons instituted a number of reforms of Rite Aid's business and has returned the company to credibility and profitability.
July 2001, Rite Aid agreed to improve their pharmacy complaint process by implementing a new program to respond to consumer complaints.
July 25, 2004, "Rite Aid to pay $7 Million for Allegedly Submitting False Prescription Claims to Government" Department of Justice Press Release
August, 2007. Rite Aid acquired approximately 1,850 Brooks/Eckerd Stores throughout the United States in hopes to improve their accessibility to a wider range of consumers. The following fiscal quarter saw an increase in revenue but a sharp fall in net income as Rite Aid began the integration process. Rite Aid shares fell over 75% between September 2007 and September 2008, closing at a low of $0.98 on September 11, 2008.
On August 23, 2006, the Wall Street Journal announced that Rite Aid would be buying the Eckerd Pharmacy and Brooks Pharmacy chains (Brooks Eckerd Pharmacy) from the Quebec-based Jean Coutu Group for US$3.4 billion, and merging the two chains into one dominant pharmacy system. The company's shareholders overwhelmingly approved the merger on January 18, 2007. After some store closures and the conversion of the two chains to Rite Aid is complete, the deal will make Rite Aid the dominating drug store retailer in the Eastern U.S., and secures its place as the third largest drug retailer nationwide (behind the faster growing Walgreens and CVS chains).
Similar to what CVS has gone through in Chicagoland after its purchase of Albertson's drug store chains, the deal had left Rite Aid with some locations in close proximity to each other. (Only 23 store locations nationally were sold off to Walgreens, The Medicine Shoppe, or independent owners in order to meet federal regulations.) In many situations, especially Pennsylvania where both chains were dominant and had roots in those states (Rite Aid originated in Scranton, while Eckerd has roots in Western Pennsylvania via Erie for itself and Pittsburgh for converted Thrift Drug locations), there were now two Rite Aids as close as right next door to each other. However, in March 2008 some of these overlapping stores were closed, with the locations saying that they "moved" to a new address, when in fact they "moved" to the other Rite Aid that was nearby. Most of these stores that closed were pre-existing Rite Aid's before the Eckerd deal, since Eckerd had built newer, more modern locations with drive-thru pharmacies and larger space under ownership of both J. C. Penney and Jean Coutu Group, and the "moved to" site were converted Eckerd's. Employees at the closed stores were transferred to the nearby locations, so no layoffs were necessary.
Rite Aid had sold some locations to J. C. Penney's Thrift Drug chain in the mid-1990s shortly before J.C. Penney's acquisition of Eckerd, and had also sold all of their Massachusetts stores to Brooks in 1995, bringing some existing Eckerd and Brooks stores that were once Rite Aids full circle.
Because Eckerd was previously owned by J.C. Penney, Eckerd stores accepted J.C. Penney charge cards. Since the merger, all Rite Aids accept J.C. Penney charge cards.
On December 21, 2007, The New York Times reported that Rite Aid had record breaking losses this year, despite the acquisition of the Brooks and Eckerd chains.
Rite Aid said it will continue to operate its remaining store in Nevada in Gardnerville, which is close to the border of California where Rite Aid has more than 600 stores. Rite Aid said Las Vegas was a non-core market for the company that has not been contributing to overall results. The company hasn't opened a new store in the Las Vegas area since 1999.
Transfer of the prescription files to nearby Walgreens will take place over the next week, and customers whose prescriptions are being transferred will be notified by letter as well as signage in the stores. Rite Aid said it would work closely with Walgreens to make sure the transfer of all the prescriptions goes smoothly so as not to disrupt serving patients.
Rite Aid said it was working with interested parties on selling or assigning the leases on the 28 buildings. The company said it will close the stores, which are located in Las Vegas, North Las Vegas, Henderson and Mesquite, over the next three months as it sells or liquidates non-prescription merchandise.
Rite Aid will grow to Approximately 5,000 Drugstores as the Jean Coutu Group Agrees to Merge all Brooks and Eckerd Stores into Rite Aid In a Transaction Valued at $3.4 Billion
Aug 24, 2006; CAMP HILL, PENNSYLVANIA and LONGUEUIL, QUEBECCCNMatthews - Aug. 24, 2006) - Rite Aid Corporation (NYSE:RAD)(PCX:RAD) and The Jean...