Penney Keeps Eckerd for Now
Chief Executive Allen Questrom says J.C. Penney will decide in about two years
whether to sell its Eckerd drugstore chain, which faces lawsuits over drug pricing,
reports the Associated Press.
Many Eckerd stores have been updated, leading to sales gains of about eight percent in those outlets, and the chain is poised to benefit from a jump in prescriptions as baby boomers age, according to Mr. Questrom.
Moderator Comment: What is the real story with Eckerd?
Rumors that Penney would spin Eckerd off and the chain
would go the IPO route have been circulating for years. That hasn’t happened.
You have to wonder if Eckerd’s business is good now and
its prospects are bright, why Mr. Questrom would be contemplating selling the
drug store chain?
The Eckerd team would probably welcome a sale or an IPO
– anything to get out from under a corporate parent that obviously doesn’t want
them. [George Anderson – Moderator]