Kai Clarke

Walgreens Takes Manhattan and Other NYC Boroughs, Too

February 18, 2010

FROM RETAILWIRE:
Walgreens announced yesterday that it had signed an agreement to acquire privately-held Duane Reade from Oak Hill Capital Partners in a cash transaction valued at $1.075 billion. Do you have any concerns about the effects of consolidation in the drugstore channel?      [more...]

This acquisition is a smart purchase by Walgreens. It allows for instant growth, a chance to expand their reach and increase their physical presence. Recessionary times are a great opportunity for stronger retailers to purchase or absorb weaker retailers, while offering opportunities for smaller retailers to grow, as they "fill-in" the gaps that the larger retailers do not focus on (unique products, local customer focus, home care, etc.). Everyone wins with this kind of scenario.