MMR: Mass Market Retailers, July 17, 2017

WHOS WHO IN BABY CARE Page 20 APP TARGETS OLDER SET Walgreens Boots Alliance Inc WBA said its mobile app has attracted a healthy following among older Americans The retailers data show that 20 or more of the apps users are age 55 and older more than twice the industry average WBA attributes the apps adoption by older consumers to such features as Pill Reminder and Refill by Scan One of the things we repeatedly hear is that customers really value their connections with individual pharmacists and staff explained Mindy Heintskill Walgreens divisional vice president of loyalty SCHNUCKS DELIVERS Schnuck Markets Inc has expanded its partnership with Instacart to bring same day delivery service to a majority of the retailers 100 stores in the Midwest Schnucks is committed to giving our customers premier products and the best shopping experiences said Andrew Nadin chief marketing officer at the St Louis based retailer Schnucks and San Francisco based Instacart Inc launched same day deliveries in February in St Louis Rockford Ill and Evansville Ind RALEYS ADDS LOCATION Raleys said it opened a newly built 40000 square foot store in Rancho Cordova Calif with a format tailored to complement the community We developed this store for customers who seek healthy food at affordable prices and an easy shopping experience said Raleys president and CEO Keith Knopf NEW MARKET 32 OPENS The newest Market 32 by Price Chopper held a grand opening event June 28 in Clifton Park N Y At 54000 square feet it is twice the size of the store it replaced and it is the retailers second in the community Krogers adjusted earnings fall by double digits page 9 Center store crucial for growth report page 15 Personal care shoppers look for deals page 29 Walmart addresses retails role as key driver of health care solutions page 46 VOLUME 34 NO 10 WWW MASSMARKETRETAILERS COM JULY 17 2017 More than 2100 Rite Aid stores are slated to become part of Walgreens WBA Rite Aid Redux DEERFIELD Ill Walgreens Boots Alliance Inc WBA announced that it is scrapping its plans to buy Rite Aid Corp and instead will acquire only a portion of the drug store chain after the original takeover effort seemed doomed by the Federal Trade Commission The new agreement replaces a previous merger deal with Rite Aid and a proposed divestiture transaction with Freds Inc The companies announced that they would end their original deal in which WBA would have purchased Rite Aid for as much as 737 billion Under the new agreement WBA will pay 518 billion to buy 2186 stores leaving Rite Aid as a regional chain The 2186 stores that are included in the agreement are primarily located in the Northeast Mid Atlantic and Southeastern regions of the United States The three distribution centers that are also included in the agreement are located in Dayville Conn Philadelphia and Spartanburg S C The consideration for the transaction will be 518 billion in cash the assumption by WBA of the related real estate leases and the grant of an option to Rite Aid exercisable through May 2019 and subject to certain conditions to become a member of WBAs group purchasing organization Walgreens Boots Alliance Development GmbH WBA will also assume certain limited store related liabilities as part of the new transaction This new transaction extends our growth strategy and offers additional operational and financial benefits remarked WBA executive vice chairman and chief executive officer Stefano Pessina This deal will also allow us to expand and optimize our retail pharmacy network in key markets in the U S including the Northeast and provide customers and patients with greater access to convenient affordable care We believe this new transaction addresses many competitive concerns previously raised with respect to the prior transaction and will streamline and simplify the transition for customers team members and other stakeholders The new agreement replaces the previous merger deal with Rite Aid announced in October 2015 and amended in January 2017 and the agreement to divest certain Rite Aid stores to Freds Inc that was announced in December 2016 Both of those Target Test Takes Aim At Amazon MINNEAPOLIS Target Corp is testing a household essentials delivery service that is said to have cheaper shipping and shorter delivery times than those available to Amazon com Inc s Prime Pantry customers The service called Target Restock launched late last month as a pilot in the Minneapolis St Paul area for the retailers Red Card holders Target said customers who place an order Monday through Thursday before 2 p m can expect delivery by the next day Target Restock is all about making the Target Run easier and helping our guests save time in their busy lives said chief information and digital officer Mike McNamara We look forward to seeing how guests in our hometown market respond to this new offering Target last spring announced that it would use about 1000 stores for direct shipping in a bid to match Amazons free two day delivery available to its Prime customers Target is positioning its stores as local distribution hubs housing goods ordered online in backroom storage areas until they can either be picked up by shoppers or shipped to their homes Target Restock aims to make the delivery option more attractive by promising a streamlined Southeastern Grocers Looking for New CEO JACKSONVILLE Fla Southeastern Grocers LLC said it is searching for a president and chief executive officer to succeed Ian McLeod who announced he would be leaving the company June 30 to take another job Anthony Hucker the companys chief operating officer agreed to assume the roles of president and CEO on an interim basis We are grateful for Ians stewardship of the business during his tenure the company said in a statement last month Under Ians direction Southeastern Grocers has made substantial progress on our transformation plan and established great momentum We wish Ian and his family the best as they embark on a new adventure McLeod has taken a job in Hong Kong as CEO of Dairy Farm International Holdings Ltd owner of about 6400 stores in Asia with supermarkets hypermarkets convenience stores health and beauty shops and home furnishing outlets in China Hong Kong India Indonesia Malaysia Macau Singapore South Korea Taiwan and Vietnam It also has a 50 interest in Maxims Hong Kongs leading restaurant chain Dollar Gen Strengthens Exec Team GOODLETTSVILLE Tenn Dollar General Corp has tapped Jason Reiser as executive vice president and chief merchandising officer The retailer also named Carman Wenkoff executive vice president and chief information officer Reiser who had been serving as executive vice president and chief operating officer at the Vitamin Shoppe was slated to join Dollar General on July 12 He replaces Jim Thorpe who recently retired from Dollar General which operates some 13600 stores in 44 states Dollar General noted that Reiser will bring more than 30 years of experience in retail management private brand sourcing and regulatory affairs to his new role Jason is an innovative merchant who has a broad range of experience in discount retail and a track record of leadership excellence Todd Vasos Dollar Generals chief executive officer said in a statement Jasons deep understanding of our customer and small box retail coupled with his proven ability to drive results will strengthen our leadership team as we strive to capture future growth opportunities At the Vitamin Shoppe Reiser was responsible for merchandising operations and supply chain Before joining the specialty store chain he served as the chief merchandising officer of Family Dollar Stores from 2013 to 2016 In that capacity Reiser was recognized as one of Mass Market Retailers Six Who Made a Difference in 2014 Reiser started his retail career as a pharmacy manager for Walmart From there he rose through the ranks to positions of increasing responsibility He SPOTLIGHT To page 2 To page 2 To page 2 To page 6 INDUSTRY NEWS