Reliable Drug Stores

"Reliable Drugs" redirects here. For drug reliability, see drug 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, it was acquired by Lane Drug in 1975, later sold to Imasco in 1984, and eventually purchased by CVS in 1990. CVS continued operating the outlets under the Peoples brand until 1994, when all locations were rebranded as CVS stores, marking the conclusion of the Peoples Drug name.

History

The inception of Peoples Drug dates back to 1905 when Malcolm Gibbs founded the company in Alexandria, Virginia. Soon after its founding, a store opened on 7th Street, NW in Washington, D.C. By 1909, the business relocated to a larger space within Mount Vernon Square. Expansion continued with a second store opening in 1912 and two additional branches added four years later. Peoples Drug also absorbed W.S. Thompson Drugstore at the intersection of 15th Street and G Street, operating it as one of their branches.

By the year 1944, the company operated approximately 130 outlets under the banners Peoples Drugs, Days Drug, and Shearer Drug. The brand appeared with several variations such as Peoples Service Drug and Gibbs Peoples Drug.

In 1970, the chain operated a total of 252 stores across regions including the District of Columbia, Maryland, Virginia, Pennsylvania, Ohio, West Virginia, North Carolina, South Carolina, Florida, New York, and New Jersey. At that time, the workforce numbered around 5,500 employees with annual sales reaching $220 million and net earnings of $1.87 million. Two years later in 1972, Lane Drug from Toledo, Ohio acquired a 22% stake in Peoples.

Acquisition by Lane Drug

In 1975, Lane Drug acquired the chain entirely, 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 merged enterprise continued under the Peoples name and incorporated several other brands, including Lane Drug, Schuman Drug, Dynamic Drug, Health Mart, Reed Drug, and Lee Drug.

By 1980, Peoples expanded its footprint through the acquisition of Haag Drug, headquartered in Indianapolis, which operated 80 stores across Indiana, Iowa, Illinois, and Kentucky. Additionally, in June 1981, Peoples purchased Drug Fair Inc., a chain of 21 stores located in Iowa and Minnesota.

In 1985, Peoples launched two "Bud's Deep Discount Drug Stores," each approximately 35,000-square-foot (3,300 m²), in the Toledo region along with additional locations in the Washington, D.C. metropolitan area. The "Bud's" brand name honored Sheldon "Bud" Fantle’s nickname. In January 1987, Fantle departed from Peoples and subsequently took over the struggling Dart Drug chain in Washington, D.C., rebranding those outlets 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 both Shoppers Drug Mart and Pharmaprix in Canada, purchased Peoples for $320 million (~$Template:Format price in Template:Inflation/year). At that point, Peoples operated 600 outlets, ranking it among the nation's top drugstore chains.

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

Over time, the Haag stores were rebranded as Peoples in 1983, while Dynamic and Schuman outlets transitioned to the Lane name. A strategic initiative was launched to unify all stores under the Peoples Drug banner. This included converting numerous Lane and Rea & Derick locations, introducing Peoples Brand merchandise across all outlets, and adopting bags emblazoned with the Peoples Drug logo. Shortly after the 1984 acquisition by Imasco, Peoples divested certain stores to focus its operations on the Mid-Atlantic region.

The initial divestiture involved selling 35 Florida Shoppers Drug Mart stores to Eckerd in 1986. Subsequently, in 1989, the Atlanta-based Reed/Lee Drug chain was sold to Big B Drugs for $50 million (~$Template:Format price in Template:Inflation/year). This 85-store acquisition marked Big B's entry into the competitive Atlanta market after years of efforts. Later that year, on April 11, 1989, the 114-store Lane drug chain was sold to Rite Aid.

The final stage of divestiture occurred in 1989 when Peoples' Indiana division was sold to a group led by former Rite Aid executives headed by Roger Grass. These former Peoples locations were rebranded as Reliable Drugs. However, Reliable Drugs operated only until 1993 before filing for bankruptcy; its remaining stores were subsequently acquired by Osco Drug and Rite Aid.

Sale to CVS

File:Peoples Drug Logo.png

Last logo of Peoples Drug (late 1980s–mid 1990s) before rebranding as CVS

Following the completion of various transactions, Imasco opted to divest the Peoples Drug chain due to its underwhelming performance relative to expectations. In 1990, Melville Corporation, which owned CVS, acquired Peoples for $330 million (~$Template:Format price in Template:Inflation/year). CVS retained the Peoples Drug branding initially, renovated most locations to align with CVS’s store design, and successfully boosted sales. The decision to postpone renaming was influenced by the strong recognition of the Peoples Drug brand. Ultimately, in May 1994, just months before the chain's 90th anniversary, the name was officially changed to CVS pharmacy.

Legacy

In May 2018, a bar and restaurant named The People’s Drug launched in Alexandria, Virginia. The proprietors selected this name as an homage to the 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
• Melville Corporation Annual Reports, 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