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Rexall

From Alfawiki
Rexall
Company typePrivate
IndustryPharmaceuticals
Founded1903; 123 years ago (1903), in Boston, Massachusetts, U.S.
Headquarters
Boston, Massachusetts
Websiterexall.com

Rexall was an American chain of drugstores and the brand name for their proprietary products. Established from the United Drug Stores cooperative launched in 1903, Rexall licensed its brand to as many as 12,000 pharmacies throughout the United States between 1920 and 1977. The "Rexall" trademark originated from Ellen M. Regis, whose "Rexall remedies" mark was acquired by the company.

Founding

In 1903, businessman Louis K. Liggett persuaded 40 independent pharmacists to each invest $4,000 (approximately $ in current value) to create United Drug Stores, a retailers' cooperative that marketed products under the Rexall brand. Following World War I, this cooperative introduced a franchise system enabling independent drugstores to operate under the Rexall name and sell its merchandise. The organization was based in Boston, Massachusetts.

Rexall Train

Between March and November of 1936, the Rexall Train traveled across the United States and Canada to promote Rexall merchandise and function as a traveling convention for franchise partners. Covering 29,000 miles, the tour reached 47 states and parts of Canada, featuring exhibits and hosting events at local Rexall outlets.

The train was powered by a streamlined New York Central Mohawk locomotive (No. 2873) pulling twelve air-conditioned Pullman cars arranged for product displays, meeting spaces, and dining services. This $1 million marketing campaign was initiated by Louis Liggett, who frequently rode in its observation car.

Growth

Justin Whitlock Dart, previously with Walgreens, purchased the Boston-based United Drug Company in 1943. He unified its Liggett, Owl, Sonta, and Rexall brands under the single Rexall identity, enhancing the company's market strength.

Rexall achieved nationwide prominence through sponsorship of popular radio shows during the 1940s and 1950s such as Amos and Andy and The Phil Harris-Alice Faye Show, featuring commercials with the slogan "Good health to all from Rexall." The company also sponsored programs like the Jimmy Durante Show and Richard Diamond, Private Detective, boosting brand awareness among major consumer audiences.

In 1946, United-Rexall Drug Inc. grew by acquiring Texas-based Renfro stores and Southeast's Lane Drug Stores chain, which operated 58 locations. Additionally, it introduced the Owl Superstores chain. In 1947, it opened a flagship store and corporate headquarters in Los Angeles dubbed the "World's Biggest Drugstore," signaling its aspirations for national retail leadership.

By 1958, Rexall had become the largest drugstore franchise in the U.S., with 11,158 stores—accounting for over one-fifth of all American drugstores—although its presence was concentrated in less densely populated regions.

That same year, Rexall employee Joe Coulombe launched Pronto Markets to compete against convenience store chains such as 7-Eleven. When Rexall planned to discontinue these stores, Coulombe acquired them himself and later founded Trader Joe's—a significant business venture that originated from his time at Rexall.

Dart departed Rexall in 1978 after developing a diversified investment portfolio through Dart Industries that included holdings in West Bend, Duracell, Hobart Corporation, Tupperware, Ralph Wilson Plastics, and Archer Glass—demonstrating strategic expansion through acquisitions and diversification.

Decline

During the late 1950s, Rexall's franchise system, which consisted of independently operated local pharmacies, encountered intense rivalry from discount drugstore chains such as Thrifty Drug, Eckerd, and later CVS Pharmacy. These competitors capitalized on bulk purchasing advantages and pursued rapid expansion. By 1977, Rexall's market value had diminished considerably, resulting in a sale to private investors for $16 million (~$ in ). The new owners sold off the company-operated outlets, although some franchisees continued using the Rexall brand. Over time, the majority of these less successful stores abandoned the name. The company redirected its efforts toward distributing vitamins, health supplements, and plastic merchandise. A number of franchise locations in the United States still operate under the Rexall banner.

Rexall-Sundown

In 1985, Sundown, a producer of sunscreen products, took control of the Rexall trademark through a hostile acquisition and began marketing nutritional supplements under the Rexall-Sundown label. This entity was separate from both the remaining Rexall drugstore franchises and Canadian pharmaceutical manufacturers using the Rexall name. In 2000, Numico purchased Rexall Sundown but divested its divisions by 2003, selling Rexall-Sundown to NBTY, a U.S.-based vitamin company. An intended transaction involving the Unicity Network division with Activated Holdings did not materialize; instead, management acquired it. As of 2022, all trademarks related to Rexall Sundown are owned by Nestlé.

Dollar General and Rexall

In March 2010, Dollar General secured licensing rights for the Rexall name from healthcare conglomerate McKesson Corporation, which had acquired Rexall (Canada) in 2016. Dollar General became the sole retailer of products bearing the Rexall brand, including over-the-counter drugs, oral care items, vitamins and dietary supplements, foot care products, and first aid supplies across its retail offerings.

See also

Further reading

  • The Rexall Story: A History of Genius and Neglect by Mickey C. Smith

External links