After Albertsons Merger Rite Aid May Have a Fresher Focus, Up its Produce Offerings
NEW YORK, NY - Although the merger between Albertsons and Rite Aid has yet to go through, speculation has arisen regarding what the future Rite Aid will look like. According to The Buffalo News, an analyst presentation put forth by the two companies shared ideas of what innovations such a merger could bring, and the focus on fresh produce has tongues wagging.
For instance, a merger with Albertsons would allow Rite Aid to see a focus on fresh grocery. The publication noted that the move toward food, health, and wellness would mean Albertsons would beef up its pharmacy under the Rite Aid brand, and Rite Aid would beef up its offerings of fruits, vegetables, and other fresh foods. In addition to a higher variety of food and beverage options cropping up on Rite Aid's shelves, fresher items like fruit cups and sandwiches would also be available to consumers.
The drug store would also gain access to Albertsons private label brands, which includes its popular O Organics line. Albertsons has been piloting an Amazon-Go type technology that would let customers buy certain products—such as the Plated meal kits it acquired last September—without interacting with a cashier.
In a letter to its shareholders, Rite Aid cited multiple reasons why it would be best to merge with Albertsons. The drug store claimed that its ability to deliver long-term value in the face of a rapidly evolving retail health store landscape would be strengthened by the merger.
However, some investors and analysts have been vocal in their opposition of the merger. In a Forbes report, Proxy advisor Glass Lewis recommended that Rite Aid shareholders vote against Rite Aid’s sale to Albertsons, citing a “poor execution review process” and “nil or negligible premium.” Lewis does not hold any Rite Aid shares himself, but the firm is known for offering analysis to investors.
With the vote expected to take place on August 9th, will this focus on fresh get shareholders to vote yes? AndNowUKnow will continue to report the latest.