Page 16 July 6, 2017 EL SEGUNDO HERALD Rite Aid from front page ”I would like to thank our entire Rite Aid team for their extraordinary efforts during this process and their tremendous focus on taking great care of our customers and patients,” said Rite Aid Chairman and CEO John Standley. Rite Aid bought the Thrifty Drugstore chain in 1996 and rebranded all of its stores in Southern California. Much of the delight of ice cream lovers, Rite Aid preserved the ice cream counters in the retail drugstores it bought from the Thrifty PayLess Corporation. When Walgreens and Rite Aid announced two years ago the chains would merge, Thrifty Ice Cream’s future again was in doubt. The iconic ice cream brand, founded in Southern California, is remembered by longtime South Bay locals for serving single scoops for a nickel and triple-scoop cones for 15 cents. Today, cone prices start at $.1.99 for a single scoop and come in popular flavors called Chocolate Malted Krunch, Butter Pecan, Medieval Madness, and Circus Animal Cookies, made with real Mother’s Cookies. The 2,186 stores included in the agreement are primarily located in the Northeast, Mid-Atlantic and Southeastern regions of the United States. For now, it appears the South Bay Rite Aid stores in El Segundo, Inglewood, Torrance, Redondo Beach and Rolling Hills Estates will get a reprieve. The company said it will use the proceeds from the Walgreens deal to strengthen its finances and to pay down existing debt. Because Walgreen backed out of the original merger deal, it agreed to pay Rite Aid a $325 million termination fee, the company said. “While we believe that pursuing the merger with [Walgreens] was the right thing to do for our investors and customers, this new agreement provides a clear path forward and positions Rite Aid as a strong, independent, multi-regional drugstore chain and pharmacy benefits manager with a compelling footprint in key markets,” Standley added. Rite Aid said it expects the scaled-back merger to be approved by federal regulators, and that the deal should close by year’s end. Financial analysts said in the days leading up to the Walgreens-Rite Aid announcement that online retail giant Amazon is interested in entering the retail pharmacy business, and that Rite Aid’s remaining 2,100 stores could be an acquisition target for Amazon CEO Jeff Bezos, who just purchased the Whole Foods grocer. Walgreens is among the top-five largest U.S. drugstore chain in prescription drug sales and has more than 8,000 stores nationwide. CVS has 9,600 stores nationwide and is pushing Walgreens, which until last year was the top-grossing U.S. retail pharmacy. Rite Aid, which had ranked next in retail pharmacy sales through its 5,200 stores, dropped last year to fourth place behind Wal Mart, according to 2016 industry data. Rite Aid’s presence in the South Bay is much smaller than Walgreens or CVS. However, the former Thrifty Drugstore chain and its iconic ice cream brand have a long history in the Los Angeles area. Brothers Harry and Robert Borun in 1929 opened their first Thrifty Cut Rate store in downtown Los Angeles. The original Thrifty’s was located across the street from the original B Thrifty Cut Rate. The brothers opened five more downtown-area stores, and then expanded beyond the city center to the Mid-Wilshire district in 1931. By the early 1940s, Thrifty Drug Stores operated 58 stores, and the Southern California-based chain opened its 100th store in 1950. Thrifty stores dotted cities between Santa Rosa and San Diego and ran a radio commercial that was a staple on L.A. stations for a decade. “Save a nickel, save a dime. Save at Thrifty every time,” the jingle said. The Rite Aid chain started as the Thrif D Discount Center in 1962 and within three years added 21 retail stores. The 22nd store added a pharmacy, changing its name to Rite Aid, and the entire company officially adopted that name in 1968. Two years ago, it ranked as the largest drugstore chain on the East Coast, and the third-largest nationwide, with 4,600 stores in 31 states, according to Investopedia. So, what’s likely to happen to your friendly neighborhood Rite Aid store now that it won’t be swallowed up as planned by the much-larger Walgreens? One financial analyst writing for The Motley Fool thinks Walgreens’ decision to call off the mega-merger hurts Rite Aid’s prospects of hanging on in the competitive retail-pharmacy landscape. “There’s a lot of bad news for Rite Aid. The most obvious is that its stock took a shellacking, with shares plunging nearly 30 percent after the announcement that the acquisition wouldn’t happen. Rite Aid stock is now trading at its lowest level since the middle of 2013,” analyst and contributor Keith Speights wrote on June 30. Because Rite Aid will emerge from the latest agreement as a much smaller company, it will have significantly less revenue and cash flow. Speights says that shoppers might feel the pinch on drug pricing and elsewhere in the chain’s remaining stores. “The worst thing about its size being pared down is that Rite Aid must still compete against big pharmacy retailers like Walgreens,” he wrote. “Lower volume from fewer stores could put Rite Aid at a disadvantage in negotiating for prices. The company could also have less money to fund new initiatives to remain competitive with larger rivals.” Standley, the Rite Aid chairman, in a statement about the restructured deal, sought to assure customers that it would be business as usual in all of the stores, including those properties changing ownership in the next six months. “We have an outstanding team of associates and, with their continued support, we will work together to deliver a great customer experience, improve our business and deliver value to all of our stakeholders,” he said. Wall Street reacted negatively to the news of a slimmed-down Rite Aid chain. Its shares fell 30 percent to a near four-year low after last week’s announcement. One retail analyst said it was his opinion that Rite Aid has a long climb ahead to remain “relevant” in the retail pharmacy sector once the deal closes. Rite Aid’s pharmacy business has reported declining profits recently, and being smaller will make it tough to negotiate lower drug prices with wholesalers, most analysts believe. • C e r t i f i e d a n d L i c e n s e d P r o f e s s i o n a l s painting PAINTERS PLUS INTERIOR • EXTERIOR PLUS IMPROVEMENTS • REPAIRS FREE ESTIMATES LOWEST PRICES • GUARANTEED QUALITY 5 YEAR FREE MAINTENANCE SERVING THE BEACH CITIES FOR OVER 20 YEARS CALL DON 310-798-0450 LIC # 726089 handyman BILL’S HOME & APARTMENT MAINTENANCE CONTRACTOR QUALITY at Handyman Prices. We cover everything from A-Z. Bill Henrichon Cell: 310-890-7531 Office: 310-542-3470 billhenrichon@sbcglobal.net Henrichon & Associates Inc. CA ST LIC# 1011547 / Licensed & Insured 2011 2012 2013 Serving the South Bay for 25 years FREE ESTIMATES CERTIFIED BUSINESS AND PROFESSIONAL (B&P) ADS SIX MONTHS – $450 • ONE YEAR – $800 We will create your B&P ad for you, at no additional cost. For information or rates, call 310-529-3227. Interested parties email: bp@heraldpublications.com PICK YOUR NEWSPAPER! All Six (or Pick And Choose) concrete LINDAHL CONCRETE, INC. Specializing in all Residential Concrete • Driveways • Patios • Pool Decks • Stone • Pavers • Stamping Call Casey or Carl - Lic. 531387 310-326-6626 Casey Lindahl founder of Lindahl Concrete Inc. WE ACCEPT CREDIT CARDS WWW.LINDAHLCONCRETE.COM handyman TOUCHSTONE Reasonably Priced – Referrals Upon Request 310-517-9677 SENIOR DISCOUNTS ContraCtor Kitchen and Bathroom Specialist, Room Additions, Plumbing, Electrical, Painting we do it all with our own crew! Painting of El SEgundo Interior & Exterior NO Job too Small • Free Estimates plumbing 24 Hour Service Since 1990 • Lic # 770059 • C-42 C-36 C-34 C20 A Free Estimates FULL SERVICE PLUMBING Sewer Video Inspection Rooter Service • Copper Repipes 310-543-2001 roofing NICK’S ROOFING SERVICE Small jobs OK! 310-697-9147 CA License # 1009097 roofing Old Fashioned Values... 50 Years and Counting. New Roofs and Repairs painting gardening CALL OR TEXT BRIAN 310-493-7811 310-322-7396 construction Foundation Replacement/Repairs House Bolting • Floor Leveling Soft Story Retrofit FREE INSPECTION Low Price Guarantee - 0% Financing Available BONDED & INSURED 323-733-3377 LIC. #788526 OVER 40 THOUSAND PAPERS DELIVERED WITHIN MILES OF YOUR HOME OR BUSINESS. Over thousand papers delivered within miles of your home or business. Stamping Pool Decks painting Frederick’s Call Freddy 310-910-4841 LIC #948597 310-322-4129 CA St. Lic. #558797, Bonded, Insured plumbing FOR ALL YOUR PLUMBING NEEDS We offer Senior Discounts • We match any pricing • Open 24/7 • Free Estimates License # 537357 1-310-782-1978 EL SEGUNDO GARDENER Licensed/Bonded All E.S. Crew, Lawn Service Clean Ups, Tree Trim, Sprinklers, Handyman, etc. Lic# 100085424 For One Price! Herald Publications newspapers: El Segundo Herald, Hawthorne Press Tribune, Inglewood Daily News, Lawndale Tribune, Manhattan Beach Sun and Torrance Tribune. We take Visa and MasterCard. Please always include your phone number with your submission. Payment must be received before ad is published. RICH’S PAINTING Specializing in exterior Quality interior work Reliable • Reasonable Rates 310-640-9465 PAINTING • PLASTERING HANDYMAN 30 Year Business and Resident in the South Bay Julian Construction, Inc. www.julianconstruction.com YOUR AD HERE Email to reserve your space marketing@heraldpublications.com YOUR AD HERE Email to reserve your space marketing@heraldpublications.com YOUR AD HERE Email to reserve your space marketing@heraldpublications.com YOUR AD HERE Email to reserve your space marketing@heraldpublications.com handyman Craftsmanship Call Manny 310-729-9612
Herald_070617_FNL_lorez
To see the actual publication please follow the link above