Does Amazon Own Rite Aid? (2023)

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Amazon is the world’s largest online retailer. It is also one of the prominent cloud computing service providers. Amazon is morphed into an online business providing e-commerce services, cloud computing services, artificial intelligence, and a streaming library. We have witnessed in recent times that companies are merging with each other to promote their business. Does Amazon do the same with Rite Aid? What’s happening with Rite Aid? We will explore the phenomenon.

Does Amazon Own Rite Aid?

Amazon does not own Rite Aid.

Amazon has a partnership program with Rite Aid only at several locations. It did not entirely own Rite Aid. Amazon has not taken a larger stake in the company but only introduced some counters in these stores. Moreover, Rite Aid is not owned by a company but has been working due to partnerships with several companies.

Rite Aid and ownership;

Rite Aid is a company not owned by specific owners. Still, it has been operating as a partnership program among several parties. Amazon is one of them. 

Rite Aid 

Rite Aid Corporation was previously known as Thrift D Discount Center. It was founded in 1962 in Scranton, Pennsylvania, by Alex Grass. This retail company is headquartered in Philadelphia, Pennsylvania. As of 2022, more than 2288 retail stores are working under the banner of Rite Aid under the leadership of Heyward Donigan, the company’s president, and CEO. 

Rite Aid Ownership

As Rite Aid has no specific ownership yet, it has been owned by stakeholders and sharers.We see that Hedge funds don’t have specific shares in this company. BlackRock is the largest shareholder of Rite Aid which owns 8.8% of shares outstanding. The Vanguard Group holds 6.8% and is the second shareholder of the company. Investo Limited is the third largest shareholder in the company. It comprises 4.6% of the shares outstanding. The Chief Executive Officer of Rite Aid, Heyward Donigan, directly has an outstanding 0.9% of the total shares. This registry clearly states that 51% of the ownership is controlled by the top 24 shareholders. This implies that only one shareholder holds a majority interest in the ownership. Top 10 Owners or stockholders of Rite Aid

The top 10 Owners or stockholders of Rite Aid Corporation include following 

  1. BlackRock Fund Advisors
  2. The Vanguard Group, Inc.
  3. Invesco Advisers, Inc.
  4. SSgA Funds Management, Inc.    
  5. GMT Capital Corp.    
  6. Two Sigma Investments LP    
  7. Dimensional Fund Advisors LP    
  8. Geode Capital Management LLC    
  9. Bridgeway Capital Management LLC    
  10. Charles Schwab Investment Management

Top Mutual Funds Holding companies of Rite Aid

These are the top Mutual Funds Holding companies of Rite Aid Corporation 

  • Invesco Global Opportunities Fund    
  • Vanguard Total Stock Market Index
  • iShares Russell 2000 ETF
  • Vanguard Extended Market Index Fund

Rite Aid Ownership Deals

There have been many deals between Rite Aid and other companies. Let’s explore them.

Rite Aid and Amazon

Both these companies are in partnership with each other. This gives them the benefit of their promotion. Both these companies are being promoted through this partnership. Amazon has established some counters in Rite Aid stores. These counters were up to 100 in counting. Anyone can buy Amazon inventory from these counters found in Rite Aid stores. This partnership will go in a strategic way that 1500 counters are expected to be inaugurated similarly in other stores. This gives benefits to Rite Aid as well. Through this partnership, more hikes in foot traffic will be there in Rite Aid stores. 

Rite Aid and Albertson

Albertson announced that it is making a deal with Rite Aid. This was assumed that Albertson would use it as a pharmacy front. But there was a strong pushback from the stakeholders, and this deal was called off.

Rite Aid and Walgreens;

In the year 2015, it was announced by Walgreens that it would buy Rite Aid for $17.2 billion. This partnership is still pending and has yet to be approved. Later in the year 2017, Walgreens boot allowance was announced and modified the previous, pending deal. According to Walgreens Boot allowance, it will only buy half of the company’s stores. This deal was expected to be signed for $5.18 billion. 

In the same year, a deal was approved between both companies. According to this deal, only 1932 stores are included in the deal. Walgreens will buy these stores for $4.38 billion. 

Amazon Subsidiaries 

There are many companies owned by Amazon. Some of these are mentioned below 

  • Book pages
  • Telebook  
  • IMDb
  • Junglee
  • PlanetAll
  • LiveBid.com
  • Accept.com
  • Alexa Internet  
  • e-Niche Incorporated  
  • Convergence Corporation
  • Tool Crib of the North (Online and Catalog Sales Division

Conclusion;

Amazon does not own Rite Aid but has a deal with the company. Amazon has inaugurated many counters in Rite Aid stores that promote each other’s brands. Rite Aid is not owned by any company but is shared among many shareholders.

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