Big B Drugs

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Big B Drugs was a drug store chain that began operation in 1968 as part of Bruno's Supermarkets, headquartered in Birmingham. Most of its stores were located next to a Bruno's, Food World or FoodMax, all Bruno's-owned stores.

In 1982, Big B was spun-off from Bruno's Supermarkets into an independent company, Big B Inc., headquartered at 2600 Morgan Road in Bessemer. In 1989, Big B acquired 85 Reed Drug Stores and Lee Drug Stores in Georgia and East Alabama from Peoples Drug.

The company had 390 locations, 6,000 employees, and close to $800 million in revenue by 1996, making it the 10th largest pharmacy chain in the United States. It had experienced 19 straight quarters of sales and earnings gains until costs overshadowed revenues in the third quarter of 1995, partly because of the pricing pressure exerted by Health Maintenance Organizations (HMOs). The precipitous decline in earnings were compounded by equipment purchases and higher employee and insurance costs, combined in a one-time restructuring late that year. The declines made the company vulnerable to a takeover, and Big B was acquired by Revco later that year.

Within the next year, Revco was acquired by CVS. By the end of 1997, all Big B Drugs and Revco were operating as CVS locations. Big B Inc. remained the franchise owner and licensee well after the change was made.

Birmingham District locations

A Big B Drugs storefront

Sources

  • Williams, Roy L. (June 30, 1996) "Big B's blues: The drugstore giant has suffered from poor earnings, despite record sales, bit it says rumors of a buyout are just that." Birmingham News
  • Big B Drugs. (2007, July 14). In Wikipedia, The Free Encyclopedia. Retrieved 00:06, July 25, 2007 [1]
  • Bruno's Supermarkets annual reports 1971-1983
  • Big B, Inc. Annual Reports 1982-1995
  • Imasco, Limited Annual Report 1986-1989