ST. LOUIS (KMOX) – The No. 1 and No. 3 drugstore chains in the U.S. are combining and it could mean a good deal for consumers. Retail analyst Burt Flickinger says Walgreens buying out the slightly less successful Rite Aid also benefits those local mom and pop pharmacies.
Flickinger says the deal will create jobs, boost sales tax in communities, increase competition, fortify independent drug stores, and lower prices.
“When health care costs are skyrocketing it’s exactly what’s needed in the industry,” Flickinger says. “As well as putting pressure on bigger competitors like CVS, like Costco, Walmart, Target and a number of others.”
The nearly $10 billion deal will create a drug store giant with close to 18,000 stores around the world.
Flickinger says the combined companies will put additional pressure on the big stores to keep their drug prices low.
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