Fred’s to Buy 865 Rite Aid Locations

Transaction would move Fred’s to the housewares retailing forefront
December 21, 2016David Gill

WalgreensRiteAidFredslogo3x2MEMPHIS, Tenn.-Fred’s Inc. has reached an agreement with Walgreens Boots Alliance and Rite Aid to purchase 865 Rite Aid stores for $950 million.

The all-cash transaction involves Rite Aid locations in the eastern and western United States, and would move Fred’s to the housewares retailing forefront. Along with its pharmacy products and services, Walgreens, Rite Aid and Fred’s offer housewares such as small electrics, personal-care electrics and home environment products.

The Fred’s deal is schedules to take place several months after Walgreens’ acquisition of Rite Aid closes. The transaction currently is awaiting approval from the Federal Trade Commission, and Walgreens and Rite Aid are working to close their deal in early 2017. The agreement with Fred’s is Walgreens’ response to FTC concerns about the Rite Aid acquisition, according to a Walgreens statement.

The transaction will position Fred’s as the third largest drug-store chain in the United States, according to a Fred’s statement.

“This will be a transformative event for Fred’s Pharmacy that will accelerate our health-care growth strategy through our acquisition of 865 new stores located in highly attractive markets,” said Michael Bloom, Fred’s CEO.

Rite Aid currently operates nearly 4,600 stores in 31 states. If FTC requires the divestiture of more than the 865 stores, the purchase agreement requires Fred’s to acquire the additional stores. Fred’s will operate the stores under the Rite Aid banner for a transition period of undetermined length, Walgreens said.

The proposed acquisition of Rite Aid by Walgreens was announced in October 2015. “With this agreement, we are moving ahead with important work necessary to obtain approval of our acquisition of Rite Aid,” said Stefano Pessina, executive vice chairman and CEO of Walgreens.

David GillDavid Gill | Contributing Editor

David Gill is a contributing editor to HFN.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.