And not one of those cheap chains either. Walgreen’s buys Duane Reade. Here’s The Curious Capitalist on the issue:
Duane Reade was a ratty little downtown cut-price operation until management decided that the key to drug retailing isn’t service—theirs was awful — but location. In the great space race of the last decade Duane Reades began to spring up everywhere there wasn’t a new bank branch going in. Result: there are 257 Duane Reades but independents got squeezed out. [link]
It’s a $1.08b deal, but almost half of that is Duane Reade’s debt.