Perry Drug Stores

For other uses, see Perry (disambiguation).
Perry Drug Stores
IndustryRetail
Founded1957; 67 years ago (1957)
Defunct1995; 29 years ago (1995)
FateAcquired by Rite aid
SuccessorRite Aid
HeadquartersPontiac, Michigan, United States
Key people
Jack A. Robinson - chief executive officer, founder
David Schwartz - chief operating officer, president
Jerry Stone - chief financing officer, vice president
ProductsRetail, Pharmacy

Perry Drug Stores was an American retail pharmacy chain founded in 1957 in the city of Pontiac, Michigan, United States. At its peak in the 1980s, Perry operated more than 200 drug stores, primarily in the state of Michigan, as well as 200 Auto Works auto parts stores and fourteen A. L. Price discount health and beauty aids outlets. In 1995, Perry Drug Stores was bought out by Rite Aid, a pharmacy chain based in Camp Hill, Pennsylvania. The Perry chain, which at the time comprised 224 stores, was the largest acquisition ever made by Rite Aid. In addition, this acquisition brought the Rite Aid name to the Detroit area for the first time.

History

A former Perry Drugs location (previously Cunningham Drug) in Oscoda, Michigan, as seen in September 2010. Since this picture was taken, the building has been re-tenanted by Goodwill Industries.

Founder Jack A. Robinson opened his first Perry Drug Store in 1957 on Perry Street in Pontiac, Michigan.[1]

In 1978, a prototype Perry store was opened, featuring an expanded sporting goods line, a home and automotive center, and live pets for sale.[2] Auto Works, an automotive parts retail chain, was introduced in 1982.[2]

Twenty-six Cunningham Drug locations were spun off by the chain's owner into a new chain called Apex Drug. By 1985, the Apex Drug locations and several other Cunningham locations were acquired by Perry, while the Cunningham locations in Florida remained in operation.[3]

In 1981, Perry Drug expanded into the Chicago, Illinois market for the first time.[4] (The chain had previously tried to enter Chicago through a failed acquisition of DeKoven Drugs.)[2] A year later, these stores were sold to businessmen Fred Barney and Bill Cartwright, two veteran businessmen who formed the Chicago operations into Perry Drug Chicago.[5]

Several units in Michigan were acquired in 1990 from Revco.[6] This acquisition made Perry the dominant drugstore chain in the Detroit area and expanded Perry's presence to the Upper Peninsula for the first time.[6]

1990s: Sale to Rite Aid

Perry Drug Stores posted a brief period of sharp declines in sales in 1990, with locations in Indiana and Wisconsin being sold off.[7][8] By 1993, the Perry Drug Chicago locations were re-acquired and liquidated.[9]

After its out-of-state operations were sold, Perry continued to expand its presence within Michigan. Many locations were remodeled to the chain's "store of the '90s" format;[7] in addition, an online computer system called PerryLink was implemented at all stores, allowing for customers to have their prescriptions filled at any location.[10]

Rite Aid, a drugstore chain based in Camp Hill, Pennsylvania, acquired twenty-five locations from Hook's Drug Stores in 1994, subsequently selling nine of the locations to Perry.[11] One year later, Rite Aid acquired all 224 of Perry Drug Stores' locations, including the former Hook's Drugs locations.[12] The acquisition of Perry Drug Stores in 1995 was the largest acquisition made by Rite Aid. It also brought Rite Aid to the Detroit area, where it previously had no stores.[13][14][failed verification]

Perry Drug Stores, Inc. remained an active subsidiary of Rite Aid (owning stores held by the company at its closure), as shown in the company's October 2023 Chapter 11 bankruptcy filings.[15]

Other operations

In addition to the drugstore chain, Perry owned two other specialty chains: Auto Works and A.L. Price.

Auto Works

Unlike other drug stores, Perry diversified by carry non-traditional items such as automotive parts like brakes, shocks, exhaust systems, and carburetors in their drug stores as early as 1975.[16][17] By 1978, Perry would have 15 out of its 56 stores, all in lower Michigan, carrying auto parts.[18]

A few years later, Perry decided to open standalone auto part stores called Auto Works. By March 1983, three stores had been open in Michigan and Chicago with plans to open 20 more.[19]

In July 1983, Perry signed a letter of intent to acquire Indianapolis-based Fleenor's Inc. with its chain of 50 auto part stores in Indiana, Ohio, and Kentucky.[20][21] After the acquisition was finalized, the Fleenor Auto Supply stores were rebranded FAS Auto Works.[22] In October 1984, Perry acquired Corvair Auto Parts with its chain of 46 auto part stores in Indiana, Ohio, Kentucky, and West Virginia.[23][24][25]

By May 1985, all FAS Auto Works and Corvair Auto Works stores were rebrand to just Auto Works.[26]

Perry sold its Auto works division with its 252 stores in Michigan, Illinois, Indiana, Wisconsin, Kentucky, Missouri and West Virginia to Northern Automotive in Northern Automotive for $51 million in February 1988.[27]

After five years of ownership, Northern Automotive failed to turn the ailing chain around and subsequently sold Auto Works with its 159 retail stores in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio and West Virginia to Hahn Automotive Warehouse in November 1993 for $13 million in cash.[28][29]

Hahn finally closed Auto Works with its 53 stores in August 1997 after filing for Chapter 11 bankruptcy.[30]

A.L. Price

A.L. Price was a deep-discount health and beauty aids retailer with sixteen locations in the Detroit area that was started in 1983.[31]

A.L. Price had 16 stores at the beginning of 1990.[32] In April 1990, Perry Drug Stores announced that it has plans to sell off fourteen of its sixteen A. L. Price locations for $14.8 million and convert the remaining two into Perry Drug stores, as part of a decision to focus entirely on the drugstore chain itself.[33][31] In March 1993, the chain, under new management, filed for Chapter 11 bankruptcy. At the time of the filing, A.L. Price had 12 stores.[34] As one of the creditors, Perry initially announced that it plans to buy all 12 stores back for $2 million plus inventory,[35] but latter change the number to 11 and increase the purchase price to $10.8 million[36][37]

By May 1994, Perry closed all of the re-purchased A.L. Price stores, except for three. Perry had plans of converting one of the stores into a Perry store, merging the inventory of the second store into an nearby existing Perry store, and no announced plans for the remaining store.[38] The remaining three stores were finally closed by the end of 1994 with plans of converting two of the stores into drive-through pharmacies.[39]

References

  1. ^ "Robinson leads Perry forward". Chain Drug Review. Vol. 15, no. 20 "Special Anniversary Issue: 15 Years of Chain Drug Retailing". Racher Press, Inc. September 13, 1993. p. 56. ISSN 0164-9914. Factiva chdr000020011031dp9d000hw. Gale A14528951.
  2. ^ a b c "Twenty-five years at a glance". Chain Drug Review. Vol. 25, no. 15. Racher Press, Inc. September 15, 2003. pp. 59+. ISSN 0164-9914. Factiva CHDR000020040116dz9f0005l. Gale A112217349.
  3. ^ "Devine, new Affil./Assoc. prez, gears up for the '90s". Drug Store News. Vol. 12, no. 16. Lebhar-Friedman, Inc. September 10, 1990. pp. 3+. ISSN 0191-7587. Factiva drsn000020011115dm9a000e3. Gale A8863438.
  4. ^ "Perry extends tactics to Illinois". Chain Drug Review. Vol. 12, no. 1. Racher Press, Inc. September 11, 1989. pp. 40+. ISSN 0164-9914. Factiva chdr000020011116dl9b0007h. Gale A7943723.
  5. ^ Frederick, James (December 9, 1991). "Perry Chicago gets a remake". Drug Store News. Vol. 13, no. 22. Lebhar-Friedman, Inc. pp. 1+. ISSN 0191-7587. Factiva drsn000020011109dnc9000eq. Gale A11791595. Archived from the original on 2009-07-03. Retrieved 2007-11-27.
  6. ^ a b Frederick, James (July 23, 1990). "Perry Drug snaps up 24 more Mich. Revcos". Drug Store News. Vol. 12, no. 14. Lebhar-Friedman, Inc. pp. 1+. ISSN 0191-7587. Factiva drsn000020011115dm7n000c3. Gale A9298805. Archived from the original on 2004-11-30. Retrieved 2007-11-27.
  7. ^ a b Frederick, James (January 7, 1991). "Perry Drug predicts rebound from '90 loss". Drug Store News. Vol. 13, no. 1. Lebhar-Friedman, Inc. pp. 1+. ISSN 0191-7587. Factiva drsn000020011109dn1700004. Gale A9313612. Archived from the original on 2005-05-28. Retrieved 2007-11-27.
  8. ^ Joyner, Tammy (March 14, 1990). "Perry Drops Wisconsin, Indiana Money-Losers". Detroit News. p. 2. ProQuest 404748799.
  9. ^ "Perry Drug Chicago on brink of extinction". Drug Store News. Vol. 15, no. 11. Lebhar-Friedman, Inc. June 7, 1993. pp. 3+. ISSN 0191-7587. Factiva drsn000020011031dp6700061. Gale A13947016.
  10. ^ "Perry computers tie Rx into network". Drug Store News. Vol. 12, no. 15. Lebhar-Friedman, Inc. August 20, 1990. p. IP3. ISSN 0191-7587. Factiva drsn000020011115dm8k000dn. Gale A9376645.
  11. ^ "Rite Aid, Perry grow in Michigan". Chain Drug Review. Vol. 16, no. 22. Racher Press, Inc. November 21, 1994. ISSN 0164-9914. Factiva chdr000020011028dqbl000ma. Gale A16469200. Archived from the original on 2008-01-22. Retrieved 2007-11-27.
  12. ^ Fried, Lisa I. (February 20, 1995). "Perry-Rite Aid consolidation begins". Drug Store News. Vol. 17, no. 3. Lebhar-Friedman, Inc. / EnsembleIQ. p. 4. ISSN 0191-7587. EBSCOhost 9504120671. Factiva drsn000020011025dr2k0000w. Gale A16541601. Archived from the original on 2006-06-18. Retrieved 2007-11-27.
  13. ^ "Rite Aid agrees to buy Perry Drug for $132 million". Corporate Growth Report Weekly. No. 826. Santa Barbara, US: Quality Services Company / NVST, Inc. January 9, 1995. p. 7269. ProQuest 211670700, 211670809.
  14. ^ "Rite Aid: About Us: History". Rite Aid. Archived from the original on 2007-10-12. Retrieved 2007-11-28.
  15. ^ "Perry Drug Stores, Inc. Files For Bankruptcy". BKData. October 15, 2023. Retrieved October 15, 2023.
  16. ^ "Pushing Automotives to New Heights". Discount Merchandiser. 21 (10). Bristol, US: Redcoat Publishing / VNU eMedia, Inc.: 24 –31? (8 pp.) October 1981. ISSN 0012-3579. ProQuest 212656446.
  17. ^ Mitchell, Gordon (July 12, 1976). "Fast-Growing Perry Drug Stores To Ring Up Another Profits Peak". Barron's National Business and Financial Weekly. Vol. 56, no. 28. Boston, Mass., US: Dow Jones & Company Inc. pp. 28, 30. ISSN 0005-6073. ProQuest 350886679.
  18. ^ "Perry Drug Stores Comes Up With Right Prescription for Growth". Barron's National Business and Financial Weekly. Vol. 58, no. 11. Boston, Mass., US: Dow Jones & Company Inc. March 13, 1978. pp. 31–32. ISSN 0005-6073. ProQuest 350720077.
  19. ^ "Stockholder Meeting Briefs". Wall Street Journal. New York, N.Y., US: Dow Jones & Company Inc. March 16, 1983. p. 38. ISSN 0099-9660. ProQuest 134818378.
  20. ^ "Drugstore to buy Fleenor's Inc". Indianapolis Star. July 27, 1983. p. 24. ProQuest 1893723142.
  21. ^ "Fleenor's sale to Perry chain mean new jobs in Muncie". Muncie Evening Press. July 29, 1983. p. 15. ProQuest 2399105629.
  22. ^ "FAS Auto Works ad". Indianapolis Star. October 10, 1983. p. 10D. ProQuest 1893751588.
  23. ^ "Perry Drug has more auto parts units than drug stores". The Pink Sheet. October 22, 1984.
  24. ^ Braykovich, Mark (October 29, 1984). "Local FAS Auto Works on list of stores eyed for acquisition". Palladium-Item. p. 11. ProQuest 2412236154.
  25. ^ "Perry Drug to Add 46 Car Part Stores". New York Times. October 11, 1984. p. D5.
  26. ^ "Auto Works ad". Indianapolis Star. May 5, 1985. p. 15D. ProQuest 1894031334.
  27. ^ Halverson, Richard C. (February 15, 1988). "Schuck's Group buys Auto Works - Northern Automotive, formerly Checker-Schuck's-Kragen". Discount Store News. Archived from the original on May 18, 2005. Retrieved September 11, 2024.
  28. ^ "Business Brief -- Hahn Automotive Warehouse Inc.: Auto Works to Be Acquired From Northern Retail Corp". J. Wall Street Journal. New York, N.Y., US: Dow Jones. November 1, 1993. p. NO PAGE CITATION. ISSN 0099-9660. Factiva j000000020011031dpb100s5v. ProQuest 395224619.
  29. ^ Hahn Automotive Warehouse 10Q. U.S. Securities and Exchange Commission (Report). December 31, 1996.
  30. ^ "Michigan Auto Works stores started sales last Saturday". Argus-Press. August 26, 1997. p. 6 – via Google News.
  31. ^ a b Tompor, Susan (April 24, 1990). "Perry Drug Will Sell A.L. Price". Detroit News. p. 1. ProQuest 404780649. Perry Drug Stores Inc. said Monday it will sell 14 A.L. Price deep discount stores to a former president of F & M Distributors Inc., another discount chain. Terms of the sale were not disclosed. The deal is expected to be completed by May 31. A.L. Price, founded by Perry Drug in 1983, employs about 400 people... A.L. Price had operated 16 stores in Michigan. But Falbaum said Perry does not plan to sell two stores, one each in Okemos and Battle Creek. He said the chain will study converting those outlets into Perry Drug
  32. ^ Wilson, Melinda (January 29, 1990). "F&M Will Expand as Newcomer Enters Market". Crain's Detroit Business. Vol. 6, no. 5. p. 3. ProQuest 212299391.
  33. ^ "Perry agrees to divest its 14 A.L. Price units". Chain Drug Review. Vol. 12, no. 16. Racher Press, Inc. May 21, 1990. pp. 1+. ISSN 0164-9914. Factiva chdr000020011115dm5l00093. Gale A9076633.
  34. ^ King, Angela (March 16, 1993). "A.L. Price chain forced to declare bankruptcy". Detroit News. p. A9.
  35. ^ "Perry Drug Stores proposes to acquire 12 A.L. Price stores". Perry Drug (Press release). April 23, 1993. ProQuest 450085461 – via PR Newswire.
  36. ^ "Perry completes takeover of A.L. Price". Drug Store News. Vol. 15, no. 14. Lebhar-Friedman, Inc. July 26, 1993. p. 3. ISSN 0191-7587. Factiva drsn000020011031dp7q00082. Gale A13237497.
  37. ^ "Business Briefs". Wall Street Journal. June 22, 1993. p. B4. ProQuest 398351420.
  38. ^ Halliday, Jean (May 2, 1994). "Perry takes its medicine". Crain's Detroit Business. Vol. 10, no. 18. p. 2. ProQuest 212202087.
  39. ^ Deck, Cecilia (October 1, 1994). "Rx: Drive-through". Detroit News. p. A13. ProQuest 247692146.

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