Haag Drug Company

"Reliable Drugs" redirects here. For drug reliability, see medication effectiveness.

Peoples Drug Stores

File:Peoplesdruglogo.PNG
Trade name	Peoples Drug
Company type	Retail/Pharmacy
Founded	1905 (1905) in Washington, D.C.
Founder	Malcolm Gibbs
Defunct	Template:End date and age
Fate	Acquired by CVS
Headquarters	Alexandria, Virginia
Products	Pharmacy, Liquor, Cosmetics, Health and Beauty Aids, General Merchandise, Snacks, 1 Hour Photo

Peoples Drug was a drugstore chain headquartered in Alexandria, Virginia. Established in 1905, the company was later acquired by Lane Drug in 1975, then by Imasco in 1984, and ultimately taken over by CVS in 1990. CVS maintained the Peoples brand until 1994 when all locations were rebranded as CVS stores, signaling the end of the Peoples Drug name.

History

Malcolm Gibbs founded Peoples Drug in Alexandria, Virginia, in 1905. Soon after its inception, the company expanded to a site on 7th Street NW in Washington, D.C. By 1909, the business relocated to a larger facility within Mount Vernon Square. The expansion continued with a second store opening in 1912 and two additional outlets established four years later. Peoples Drug also acquired W.S. Thompson Drugstore at the intersection of 15th Street and G Street, operating it as one of its branches.

By the year 1944, the chain operated approximately 130 stores under various banners including Peoples Drugs, Days Drug, and Shearer Drug. Several name variants existed throughout its history such as Peoples Service Drug and Gibbs Peoples Drug.

In 1970, the company operated 252 outlets across several states including the District of Columbia, Maryland, Virginia, Pennsylvania, Ohio, West Virginia, North Carolina, South Carolina, Florida, New York, and New Jersey. During that period it employed around 5,500 people and generated $220 million in sales with profits totaling $1.87 million. In 1972, Lane Drug from Toledo, Ohio acquired a 22% stake in Peoples.

Acquisition by Lane Drug

In 1975, Lane Drug completed a full purchase of the chain, resulting in a merged entity operating 380 outlets. Sheldon "Bud" Fantle, then president of Lane, assumed the roles of chairman, president, and CEO of Peoples. The unified company continued under the Peoples brand, encompassing Lane Drug as well as Schuman Drug, Dynamic Drug, Health Mart, Reed Drug, and Lee Drug.

By 1980, Peoples expanded its footprint by acquiring Haag Drug, headquartered in Indianapolis, which operated 80 stores across Indiana, Iowa, Illinois, and Kentucky. Additionally, in June 1981, Peoples took over Drug Fair Inc., a chain with 21 locations based in Iowa and Minnesota.

In 1985, Peoples launched two "Bud's Deep Discount Drug Stores" in the Toledo region, each approximately 35,000-square-foot (3,300 m²), along with additional outlets in the Washington, D.C. metro area. The "Bud's" name paid homage to Sheldon "Bud" Fantle's nickname. Mr. Fantle departed from Peoples in January 1987 and subsequently acquired the struggling Dart Drug chain in Washington, D.C., rebranding those stores as Fantle's.

File:Peoples Drug Store, 8th and H Streets NE.jpg

Peoples Drug store in Washington, D.C., c. 1920

Acquisition by Imasco

In 1984, the Canadian conglomerate Imasco, which served as the Canadian division of British American Tobacco and owned retail chains such as Shoppers Drug Mart and Pharmaprix in Canada, purchased Peoples for $320 million (~$Template:Format price in Template:Inflation/year). At that time, Peoples operated approximately 600 outlets, ranking among the nation's prominent drugstore chains.

Following the acquisition by Imasco, Peoples expanded its footprint by acquiring Rea & Derick in 1985 and also assumed control of the Florida-based Shoppers Drug Mart locations.

Throughout subsequent years, several store conversions took place: Haag stores were rebranded to Peoples in 1983, while Dynamic and Schuman locations transitioned to Lane. A strategic initiative aimed at unifying all outlets under the Peoples Drug banner was set in motion. This involved rebranding numerous Lane and Rea & Derick stores, introducing Peoples Brand merchandise across all locations, and adopting bags featuring the Peoples Drug logo. Shortly after Imasco’s acquisition in 1984, Peoples divested certain stores to focus on strengthening its presence in the Mid-Atlantic region.

The initial divestiture included selling 35 Florida Shoppers Drug Mart outlets to Eckerd in 1986. Subsequently, the Atlanta-based Reed/Lee Drug division was sold to Big B Drugs in 1989 for $50 million (~$Template:Format price in Template:Inflation/year). This transaction provided Big B with entry into the competitive Atlanta market—a long-sought objective. Shortly thereafter, Lane Drug’s 114-store chain was acquired by Rite Aid, effective April 11, 1989.

The final stage involved selling the Indiana division of Peoples in 1989 to a consortium led by former Rite Aid executives headed by Roger Grass. These former Peoples stores were rebranded as Reliable Drugs. However, Reliable Drugs operated for only four years before filing for bankruptcy in 1993; its assets were subsequently acquired by Osco Drug and Rite Aid.

Acquisition by CVS

File:Peoples Drug Logo.png

Final logo of Peoples Drug (late 1980s–mid 1990s) prior to rebranding as CVS

Following the completion of various sales, Imasco opted to divest the Peoples Drug chain due to its underperformance relative to expectations. In 1990, Melville Corporation, the parent company of CVS, acquired Peoples for $330 million (~$Template:Format price in Template:Inflation/year). CVS retained the Peoples Drug brand initially, revamped the majority of locations to align with CVS’s store design, and succeeded in boosting their sales figures. The decision to postpone renaming stemmed from the strong local recognition of the Peoples Drug name. Ultimately, in May 1994, just months before the chain’s 90th anniversary, the brand was officially rebranded as CVS pharmacy.

Legacy

In May 2018, a bar and eatery named The People’s Drug was launched in Alexandria, Virginia. The proprietors selected this name as an homage to the historic regional pharmacy chain renowned for its lunch counters.

Further reading

• Annual Reports of Peoples Drug Store 1965–1983
• Annual Reports of Imasco Enterprises 1984–1990
• Annual Reports of Melville Corporation 1991–1995
• "The Chain Welder," Peoples Drug Company Magazine 1920–1937
• "Employee Handbook," Peoples Drug, August 1979
• "Peoples People," Peoples Drug Company Magazine 1941–1958