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In a rather interesting turn of events for the Walgreens/Rite Aid merger, Kroger has evidently expressed an interest in buying some of the excess stores that will be created once the merger FINALLY goes through. This news is actually rather interesting because it not only brings Kroger into the northeast, but also creates the possibility of a new prototype for the company.
The question is (assuming the deal were to go through) would Kroger operate a smaller supermarket within or just run a Kroger-branded drug store chain?
Being right in the middle of it all, I may just have a front row seat if Kroger does indeed get access to the 500-1,000 locations expected to be sold off.
http://www.bizjournals.com/cincinnati/news/2016/08/29/kroger-could-be-looking-to-snap-up-walgreens-rite.html?ana=yahoo&yptr=yahoo
Very interesting news! Kroger would certainly have the whole spectrum covered then: regular grocery stores, sprawling Marketplaces, and smaller drugstores (or mini-groceries). Keep us posted! :D
ReplyDeleteOf course I shall keep you posted!
DeleteAnything is possible, but I wouldn't necessarily get my hopes up for it. Remember, there was speculation last year that Kroger would buy Winn-Dixie and push further into Florida. That didn't happen.
ReplyDeleteI don't think Kroger would go into the Northeast unless a good competitor with good market penetration, market share, and reputation were to go up for sale.
Tops would be an okay target for acquisition, but it's in Wegmans' backyard.IMO Kroger would end up fighting an uphill battle, and they wouldn't want that.
Ingles, for example in Western NC would be an almost perfect example of the type of chain Kroger would buy. Good market presence, decent reputation, and the only other grocery chains either have marginal presence (Harris Teeter) or Marginal store (Food Lion, Bi-Lo).
A few Decades ago, Kroger had its own drugstores under the SuperX and Sav-On Banners. It was spun off and ended up being sold to Revco.
Revco went out in the 1990s, and many of the stores went to CVS, which is why there are quite a few CVS locations next to Kroger stores.
I'm not holding my breath. I'm just kind of pleased to hear that Kroger is showing interest in my area. You can occasionally find a Walgreens, but Rite Aid has a much larger presence. And where you find a Walgreens, you often find a Rite Aid just down the road or across the street.
DeleteI've also heard rumors that Kroger was interested in buying the Price Chopper chain as the Market32 concept rolled out isn't doing as well as was hoped. While highly unlikely, the article speculates that maybe Kroger would actually build stores in the area once it has built a reputation.
While Wegmans is a great supermarket, there really isn't a lot of them. Even though this is their territory, many towns up this way do not have a Wegmans. Tops, which was owned by Ahold, is know locally owned and operates more stores than Wegmans in the area. They would make an ideal acquisition candidate, but it is unlikely as Tops has actually been doing rather well and expanding themselves.
I stopped into an Ingles while on vacation and I must say they do have a nice feel. I was taking pictures, but was asked to stop as 'cameras aren't allowed.' At least I got the majority of the store's decor.
I'm aware that Kroger did operate a separate pharmacy business which again begged the question if these acquisitions would be a reboot of that prototype. That explains why I stumbled upon a few CVS right next to Kroger.