David Biernbaum

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...]

Walgreens is a good company that I have done business with for more than 30 years. Walgreens will do a great job in the NY market.

What concerns me is that the U.S. drug store market has a serious lack of competition. I do not believe that this is a wonderful thing for manufacturers, entrepreneurs, and consumers, especially where front-end merchandising is concerned.

It's getting to the point where "choice" will be very limited, not only for selecting which store to shop, but also in terms of product selection. The mega-branded companies will be fine but the more innovative, newer, small brands that consumers love, will be missed.

It was retailers such as Duane Reade, Longs, and other smaller regional drug chains that would tend to make room for the "new" and the "different." Once these innovations would gain momentum then the larger drug chains would carry them.