Thrifty PayLess

{{Short description|Defunct American drugstore chain}} {{Distinguish|Thrift Drug|Payless ShoeSource}} {{redirect|Pay Less Drug Store|other stores|Pay Less (disambiguation)}} {{other uses|Thrifty (disambiguation)}} {{use mdy dates|date=July 2025}} {{Infobox company | name = Thrifty PayLess Holdings, Inc. | logo = Thrifty PayLess logo.png | logo_size = 200px | logo_alt = | logo_caption = | logo_padding = | image = | image_size = | image_alt = | image_caption = | trading_name = | former_name = | type = Holding company | traded_as = | ISIN = | industry = Retail/Pharmacy| | fate = Acquired by Rite Aid | predecessor = (merger of) PayLess Drug Stores (and) Thrifty Corporation  | successors = Rite Aid  | foundation = {{start date and age|1994|4}} (as Thrifty PayLess Holdings, Inc.) Los Angeles, California, U.S.  | founder =  | defunct = {{end date and age|1996|10|15}} (as Thrifty PayLess Holdings, Inc.) Los Angeles, California, U.S.  | location_city = | location_country = | coordinates = | locations = 1,000+  | area_served = California, Oregon, Washington, and Idaho | key_people = | products = | brands = | production = | services = Pharmacy, Liquor, Cosmetics, Health and Beauty Aids, General Merchandise, Snacks, 1-Hour Photo | revenue = | operating_income = | net_income = | aum =  | assets = | equity = | owner =  | members = | num_employees = | parent = | divisions = | subsid = | website =  | footnotes = | intl =  | bodystyle = }}

'''Thrifty PayLess Holdings, Inc.''' was a pharmacy holding company that owned the '''Thrifty Drugs''' and '''PayLess Drug Stores''' chains in the western United States. The combined company was formed in April 1994 when Los Angeles–based '''TCH Corporation''', the parent company of '''Thrifty Corporation''' and '''Thrifty Drug Stores, Inc.''', acquired '''PayLess Drug Stores Northwest, Inc.'''

At the time of the merger, Thrifty operated 495 stores and PayLess operated 543 stores. TCH Corporation was renamed '''Thrifty PayLess Holdings, Inc.''' In 1996, Rite Aid acquired Thrifty PayLess Holdings.

== History of PayLess == {{More citations needed section|date=July 2019}} thumb|right|Logo for PayLess Drug Stores.

=== Independence === In 1932, L.J. Skaggs opened Payless Drug Stores in Tacoma, Washington, which soon expanded across the western United States. In 1939, four stores were sold to his brother Samuel "L.S." Skaggs and two associates after they resigned as executives at Safeway. These stores later became known as Skaggs PayLess Drug Stores, and later part of Skaggs Companies.<ref>{{Cite web |date=September 19, 1997 |title=SKAGGS-L Archives |url=http://archiver.rootsweb.ancestry.com/th/read/SKAGGS/1997-09/0874716822 |archive-url=https://web.archive.org/web/20120207050027/http://archiver.rootsweb.ancestry.com/th/read/SKAGGS/1997-09/0874716822 |archive-date=February 7, 2012 |access-date=July 10, 2025 |website=RootsWeb.com}}</ref><ref>{{Cite news |date=April 5, 1967 |title=Hundreds of Grand Opening Specials |url=https://newspapers.lib.utah.edu/details?id=26264399&q=Payless+drug&sort=rel&facet_paper=%22Deseret+News%22 |access-date=July 11, 2025 |work=Deseret News |pages=12 |via=newspapers.lib.utah.edu}}</ref> The stores that remained with L.J. Skaggs eventually became part of Thrifty PayLess.

During the 1940s, Peyton Hawes and William Armitage acquired five drug stores in Oregon and Washington, which were named PayLess, and grew their chain through both acquisition and internal expansion.<ref>{{Cite web |date=May 1994 |title=Dartmouth Alumni Magazine |url=https://archive.dartmouthalumnimagazine.com/article/1994/5/1/deaths |access-date=2025-07-11 |website= |page=74 |language=en-US}}</ref><ref>{{Cite news |date=1944-06-15 |title=Dawson and Payless Drug Stores Sold to Portland Man |url=https://www.newspapers.com/article/albany-democrat-herald-dawson-drug/127918043/ |access-date=2025-07-11 |work=Albany Democrat-Herald |pages=1}}</ref><ref>{{Cite web |title=Obituaries and Death Notices in Multnomah County Oregon |url=https://genealogytrails.com/ore/multnomah/obitsH.html |access-date=2025-07-11 |website=genealogytrails.com}}</ref> Hawes lost two stores in the 1948 Vanport flood. By 1950, he had 11 stores across Oregon, Idaho, and Washington.<ref>{{Cite book |url=https://archive.dartmouthalumnimagazine.com/issue/19500101#!&pid=58 |title=Dartmouth Alumni Magazine |date=January 1950 |publisher=Dartmouth Secretaries Association |pages=58}}</ref> By the 1960s, the Payless name was used by three separate companies: One based in Washington and Oregon, one in California, and a four-store chain in Tacoma, Washington.<ref>{{Cite web |last=Humphrey |first=Clark |date=June 1992 |title=6/92 Misc. Newsletter |url=http://www.miscmedia.com/6-92.html |archive-url=https://web.archive.org/web/20000305200910/http://www.miscmedia.com/6-92.html |archive-date=March 5, 2000 |access-date=July 10, 2025 |website=MISC Media}}</ref> By 1961, Hawes had 12 stores throughout Oregon, four in Washington, one in California, and one in Idaho.<ref>{{Cite book |url=https://archive.dartmouthalumnimagazine.com/issue/19610401#!&pid=52 |title=Dartmouth Alumni Magazine |publisher=Dartmouth Secretaries Association |publication-date=April 1961 |pages=53}}</ref>

In 1967, Pay Less Drug Stores Northwest became a public company.<ref>{{Cite news |date=1967-11-01 |title=DRUG CHAIN'S ISSUE IS OVERSUBSCRIBED |url=https://www.nytimes.com/1967/11/01/archives/drug-chains-issue-is-oversubscribed.html |access-date=2025-07-11 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref> As early as 1971, the 32-store Skaggs Pay Less Drug Stores of Oakland discussed a merger with the 39-store Pay Less Drug Stores Northwest, Inc. of Portland. The combined company would drop the Skaggs name to be called Pay Less Stores.<ref>{{Cite news |last=Cole |first=Robert J. |date=1971-05-06 |title=Genesco Plans Take-Over Of Beeline Fashions, Inc. |url=https://www.nytimes.com/1971/05/06/archives/genesco-plans-takeover-of-beeline-fashions-inc-companies-take.html |access-date=2025-07-09 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref> In 1973, the company acquired Seattle-based House of Values and Portland-owned Gov-Mart Bazaar to form PayLess House of Values. In 1976, it bought 21 Value Giant stores in Northern California, Oregon, and Washington.<ref>{{Cite news |date=1976-09-10 |title=Pay Less Drug Buying Value Giant Stores |url=https://www.nytimes.com/1976/09/10/archives/pay-less-drug-buying-value-giant-stores.html |access-date=2025-07-09 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref> Pay Less Drug Stores Northwest finally acquired PayLess Drug Stores of Oakland, California, in 1980.<ref name="lat-1985jan15" /> Pay Less hit $1 billion in sales in 1984.<ref>{{Cite web |date=July 23, 1984 |title=Pay Less to jump $1 billion sales hurdle in 1984 |url=http://www.findarticles.com/p/articles/mi_m3092/is_v23/ai_3359900 |archive-url=https://web.archive.org/web/20050129103707/http://www.findarticles.com/p/articles/mi_m3092/is_v23/ai_3359900 |archive-date=January 29, 2005 |access-date=July 11, 2025 |website=Discount Store News |via=FindArticles}}</ref>

=== Sale to Kmart === In 1985, the 164-store Pay Less Drug Stores Northwest Inc. was acquired by Kmart for $509 million as part of the company's expansion program created by CEO Joseph Antonini.<ref name="lat-1985jan15">{{cite news |last=Yoshihara |first=Nancy |date=January 15, 1985 |title=K mart to Buy Pay Less for About $500 Million |url=https://www.latimes.com/archives/la-xpm-1985-01-15-fi-7557-story.html |newspaper=Los Angeles Times |url-access=subscription}}</ref><ref name=":0">{{Cite news |last=Adelson |first=Andrea |date=1993-12-03 |title=COMPANY NEWS; Kmart Selling Payless To Thrifty Drug Group |url=https://www.nytimes.com/1993/12/03/business/company-news-kmart-selling-payless-to-thrifty-drug-group.html |access-date=2025-07-09 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref><ref>{{Cite news |last=Barmash |first=Isadore |date=1985-01-25 |title=THE NEW, 'SUPER' DRUGSTORES |url=https://www.nytimes.com/1985/01/25/business/the-new-super-drugstores.html |access-date=2025-07-09 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref> In 1986, there were 225 PayLess stores.{{citation needed|date=June 2021}} In 1987, the company purchased 25 Osco Drug stores in California, Idaho, Oregon, and Washington. In 1990, the company acquired Pay Less of Tacoma, Washington. By this time, PayLess operated in nine western states before its parent company was acquired by Rite Aid and the stores rebranded.{{citation needed|date=June 2021}}

In 1992, PayLess purchased 124 Pay 'n Save stores in Washington, Alaska, Hawaii and Idaho from Pacific Enterprises.<ref>{{Cite web |last=Andrews |first=Paul |date=May 23, 1992 |title=End Of An Era: Pay'n Save Being Bought By Pay Less {{!}} The Seattle Times |url=https://archive.seattletimes.com/archive/19920523/1493375/end-of-an-era-payn-save-being-bought-by-pay-less |access-date=2025-07-09 |website=The Seattle Times}}</ref><ref>{{Cite web |last=Archives |first=L. A. Times |date=1992-07-28 |title=RETAIL |url=https://www.latimes.com/archives/la-xpm-1992-07-28-fi-4787-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref> By 1993, PayLess was the 10th-largest drugstore chain in North America and operated in 12 Western states.<ref name=":0" /> However, by August 1993, Kmart announced it was putting Payless up for sale in order to concentrate on its core discount operations.<ref name="lat-1993dec03">{{cite news |last=White |first=George |date=December 3, 1993 |title=Kmart to Sell Payless Chain to THC Corp.: Merger: With $1-billion deal, Thrifty's parent firm will become the nation's second-largest drugstore retailer |url=https://www.latimes.com/archives/la-xpm-1993-12-03-fi-63589-story.html |newspaper=Los Angeles Times |url-access=subscription}}</ref>

== History of Thrifty == thumb|right|A Thrifty Drug Store at Sunset Blvd. and Fairfax Ave. in Los Angeles, {{circa|1939}}

=== Thrifty Drug Stores === In 1919, brothers Harry<ref name="lamag-thrifty-ice-cream-Borun">{{cite news |last1=Nichols |first1=Chris |title=How Thrifty Ice Cream Became a SoCal Institution |url=https://www.lamag.com/digestblog/thrifty-ice-cream-history/ |access-date=17 November 2021 |work=Los Angeles Magazine |date=4 November 2020 |quote=Dr. Raymond Borun is a retired physician in Brentwood. His father Harry and uncle Robert founded Thrifty Drug Stores in 1929}}</ref> and Robert Borun, along with brother-in-law Norman Levin, founded '''Borun Brothers''', a Los Angeles drug wholesaler. By 1929, the brothers opened their own Los Angeles retail outlets under the name '''Thrifty Cut Rate Drug Store'''.<ref name=":1">{{Cite web |last=Lazzareschi |first=Carla |date=1992-05-23 |title=Pacific Enterprises Sheds Thrifty Corp. : Retailing: L.A. investors will buy most of the subsidiary, including Thrifty Drug. The deal is worth about $275 million. |url=https://www.latimes.com/archives/la-xpm-1992-05-23-fi-283-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref> The first store was located at 412 S. Broadway in downtown Los Angeles, just across the street from the original Broadway Department Store.<ref name=ocr-1989jun08-1>{{cite news |url=https://newspaperarchive.com/us/california/santa-ana/santa-ana-orange-county-register/1989/06-08/page-20 |title=New Drug Store Named Thrifty Vows Low Prices |newspaper=Orange County Register |date=June 8, 1989 |pages=A21–A22, A26 |author=}}</ref>

After opening five additional downtown area stores,<ref name=lat-1931may24>{{cite news |title=Drugstore Chain Opens Sixth Unit: Store and Second Floor of Broadway Structure Taken on Lease |newspaper=Los Angeles Times |date=May 24, 1931 |page=D2 |url= |url-access= |author= |id={{ProQuest|162641302}}}}</ref> Thrifty opened its seventh store in the recently completed Pellissier Building in the Mid-Wilshire district, on Wilshire Boulevard and Western Avenue, in 1931. This was their first store outside of downtown,<ref name=lat-1931oct09>{{cite news |title=Thrifty Ad |newspaper=Los Angeles Times |date=October 9, 1931 |page=2 |url= |url-access= |author= |id={{ProQuest|162498950}}}}</ref> and it was quickly followed by several new stores within a few miles of downtown.

By 1942, Thrifty Drug Stores operated 58 stores and 78 stores in 1948.<ref>{{Cite book |url=http://archive.org/details/thriftydrugstoresannualreports |title=Annual Report for the Year Ended August 31, 1948 |publisher=Thrifty Drug Stores |via=The Internet Archives}}</ref> By the time its 100th store opened in Studio City in 1950,<ref name=lat-1950dec08>{{cite news |title=Thrifty's 100th Store Opens in Studio City |newspaper=Los Angeles Times |date=December 8, 1950 |page=A11 |url= |url-access= |author= |id={{ProQuest|166166839}}}}</ref> Thrifty ranged as far north as Santa Rosa, California, and as far south as San Diego. Thrifty soon expanded outside California, opening a Las Vegas location in 1952.<ref name=lat-1952oct16>{{cite news |title=Las Vegas Gets Thrifty Store |newspaper=Los Angeles Times |date=October 16, 1952 |page=34 |url= |url-access= |author= |id={{ProQuest|166401965}}}}</ref> In 1959, the chain expanded into the Pacific Northwest with a store in Eugene, Oregon.<ref name=erg-1959oct15>{{cite news |url=https://news.google.com/newspapers?nid=1310&dat=19591015&id=6RZWAAAAIBAJ&sjid=8eIDAAAAIBAJ&pg=6893,2711216 |title=New Thrifty Drug Store Holds Grand Opening |newspaper=Eugene Register-Guard |date=October 15, 1959 |page=6B |author=}}</ref><ref name=erg-1959oct05>{{cite news |url=https://news.google.com/newspapers?nid=1310&dat=19591005&id=3xZWAAAAIBAJ&sjid=8eIDAAAAIBAJ&pg=3934,839733 |title=Why We Picked Eugene For Our First Northwest Store |work=Eugene Register-Guard |date=October 5, 1959 |page=2A |author=}}</ref>

thumb|right|A selection of Thrifty store-branded products

Store grand opening events were always a large spectacle, with politicians as well as movie and television celebrities involved in the ceremonies. Actor Errol Flynn participated in the 1941 opening of the South Pasadena store.<ref name=lat-1941aug24>{{cite news |title=Thrifty Drug Chain Opens New Branch |newspaper=Los Angeles Times |date=August 24, 1941 |page=F1 |url= |url-access= |author= |id={{ProQuest|165246053}}}}</ref> A neon Thrifty Drug Store sign is visible in the background of a scene from the 1954 Judy Garland version of ''A Star Is Born''.

During the 1950s, a Thrifty commercial jingle played on numerous radio stations in Southern California: <blockquote><poem> Save a nickel, save a dime. Save at Thrifty every time. Save a dollar and much more, at your Thrifty Drug Store!<ref>{{cite news |url=http://www.boulevardsentinel.com/10-2009.htm |title=Looking Back |newspaper=Boulevard Sentinel |date=October 2009 |volume=13 |issue=6 |first=Joe |last=Walker |url-status=dead |archive-url=https://web.archive.org/web/20131227011604/http://www.boulevardsentinel.com/10-2009.htm |archive-date=2013-12-27 }}</ref> </poem></blockquote>

=== Diversification as Thrifty Corp. === In the early 1970s, Thrifty's parent began to diversify outside the drug store industry through the acquisition of Big 5 Sporting Goods, a sporting goods chain, in 1972.<ref>{{Cite web|url=https://www.fundinguniverse.com/company-histories/big-5-sporting-goods-corporation-history/|title=History of Big 5 Sporting Goods Corporation – FundingUniverse}}</ref> Thrifty expanded into general merchandising by the gradual acquisition of The Akron chain, 40% in 1976,<ref name="lat-1976apr10">{{cite news |author= |date=April 10, 1976 |title=Thrifty Drugs Buys 40% Interest in Akron Stores |url= |url-access= |newspaper=Los Angeles Times |page=C11 |id={{ProQuest|157968817}}}}</ref> increasing to 90% the following year,<ref name="wwd-1977mar08">{{cite news |author= |date=March 8, 1977 |title=Thrifty Drug Reportedly Increased Akron Holdings |newspaper=WWD |page=28 |volume=134 |issue=46 |id={{ProQuest|1699838947}}}}</ref><ref name="wwd-1977mar10">{{cite news |author= |date=March 10, 1977 |title=Thrifty Increases Stock In The Akron |newspaper=WWD |page=16 |volume=134 |issue=48 |id={{ProQuest|1699838084}} }}</ref> and eventually to 100%.

Thrifty's parent, Thrifty Drug Stores Co. Inc., became Thrifty Corp. in 1977 to better reflect the parent company's expansion into non-pharmacy businesses through the purchase of companies such as Big 5 Sporting Goods and The Akron.<ref name="lat-1977jan26">{{cite news |title=Thrifty Drug Votes Name Change; Dividend Boosted |newspaper=Los Angeles Times |date=January 26, 1977 |page=E15 |last=Yoshihara |first=Nancy |url= |url-access= |id={{ProQuest|158230019}}}}</ref>

During the 1980s, Thrifty further diversified by entering into several joint ventures with Herbert Haft and his East Coast–based Dart Drug that would introduce Crown Books and Trak Auto to the West Coast. Thrifty acquired 50% ownership of Crown and had opened several bookstores in the Los Angeles area in 1981.<ref name=ct-1981jul22>{{cite news |url=http://archives.chicagotribune.com/1981/07/22/page/41/article/industry-report |title=Discounter here? The Plot thickens |newspaper=Chicago Tribune |date=July 22, 1981 |first=Charles |last=Storch}}</ref><ref name=lat-1981jun16>{{cite news |title=Thrifty to Buy 50% of Crown Books |newspaper=Los Angeles Times |date=June 16, 1981 |page=e4 |author= |url= |url-access= |id={{ProQuest|152803191}}}}</ref> In 1982, Thrifty sold the 21-store Akron chain to Hong Kong investors.<ref>{{Cite web |date=December 22, 1982 |title=Thrifty Corp. disclosed Tuesday it has sold the 21-store... - UPI Archives |url=https://www.upi.com/Archives/1982/12/22/Thrifty-Corp-disclosed-Tuesday-it-has-sold-the-21-store/8363409381200/ |access-date=2025-07-10 |website=UPI |language=en}}</ref> In 1983, Thrifty acquired 50% ownership in Trak and also opened several of the auto parts stores in the Los Angeles area.<ref name=wp-1983feb10>{{cite news |title=Dart Drug to Spin Off Part of Trak Auto Chain |newspaper=Washington Post |date=February 10, 1983 |page=B1 |first=Rudolph A. Jr. |last=Pyatt |url= |url-access= |id={{ProQuest|138077221}}}}</ref>

In Washington State, Thrifty went by the name of Giant T since the Thrifty name was in use by another chain of drug stores. The name was later changed to Thrifty in 1984.{{citation needed|date=November 2023|reason=Probably true, but the dates could be incorrect due to deteriorating memories of aging persons of the distant past.}}

In 1986, Thrifty acquired the 15-store Drug King chain in January and 13 Guild Drug stores in March. Both businesses were converted to Thrifty Jr. locations. At that time, Thrifty Corp. was made up of 550 Thrifty Drug stores and 90 Big 5 Sporting Goods stores, with interest in the 187-store Crown Books chain and 72-store Trak Auto West discount automobile parts chain.<ref>{{Cite web |last=Gellene |first=Denise |date=1986-03-21 |title=Thrifty Will Buy Guild Drugstore Chain |url=https://www.latimes.com/archives/la-xpm-1986-03-21-fi-5327-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref> During the same year, it also acquired sports retailing brand Gart Bros.<ref>{{Cite web |date=1992-11-10 |title=GART FAMILY PULLS OUT OF GART BROS. |url=https://www.deseret.com/1992/11/10/19015501/gart-family-pulls-out-of-gart-bros/ |access-date=2025-07-10 |website=Deseret News |language=en}}</ref>

=== Sale to Pacific Lighting === Thrifty Corp. was acquired by Pacific Lighting, the parent of Southern California Gas, in May 1986.<ref name="nyt-1986may29">{{cite news |url=https://www.nytimes.com/1986/05/29/business/utility-will-buy-drug-chain.html |title=Utility Will Buy Drug Chain |newspaper=New York Times |date=May 29, 1986 |first=Nicholas D. |last=Kristof |url-access=subscription}}</ref> At the time, this included 555 Thrifty drug stores, 27 Thrifty Jr. stores, and 89 Big 5 sporting goods stores.<ref name="lat-1986may29">{{cite news |last=Groves |first=Martha |date=May 29, 1986 |title=Pacific Lighting Will Buy Thrifty Corp. in Stock Swap: $885-Million Deal Links Parent of Southern California Gas and Operator of State's Biggest Discount Drugstore Chain |url=https://www.latimes.com/archives/la-xpm-1986-05-29-fi-7799-story.html |newspaper=Los Angeles Times |url-access=subscription}}</ref> One of its first decisions was to sell Thrifty's shares in Crown Books and Trak Auto West.<ref>{{Cite web |last=Groves |first=Martha |date=1986-06-10 |title=Thrifty Sells Stakes in Crown Books, Trak Auto |url=https://www.latimes.com/archives/la-xpm-1986-06-10-fi-9883-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref> In 1988, Thrifty acquired Pay 'n Save and Bi-Mart.<ref name="lat-1988may14">{{cite news |url=https://www.latimes.com/archives/la-xpm-1988-05-14-fi-2842-story.html |title=Thrifty to Buy All 147 Pay 'n Save Stores for $232 Million in Stock |newspaper=Los Angeles Times |date=May 14, 1988 |first=George |last=White |url-access=subscription}}</ref><ref>{{Cite news |date=1988-06-30 |title=Thrifty Corp., a unit of Pacific Enterprises,... |url=https://www.latimes.com/archives/la-xpm-1988-06-30-fi-7615-story.html |access-date=2025-07-10 |newspaper=Los Angeles Times |language=en-US |url-access=subscription}}</ref> Following the acquisition, all Thrifty stores in Washington state were renamed to Pay 'n Save.<ref name="sr-1988aug24">{{cite news |url=https://news.google.com/newspapers?nid=1314&dat=19880824&id=tlpWAAAAIBAJ&sjid=te8DAAAAIBAJ&pg=4988,6243907 |title=Thrifty Stores Converting |newspaper=Spokesman-Review |date=August 24, 1988 |page=B3 |author=}}</ref>

Thrifty close its seven remaining Utah stores in May 1989.<ref>{{cite news |url=https://www.deseret.com/1989/3/9/18798515/thrifty-will-close-its-utah-outlets-br-stores-are-discounting-all-merchandise-except-prescriptions/ |title=THRIFTY WILL CLOSE ITS UTAH OUTLETS STORES ARE DISCOUNTING ALL MERCHANDISE EXCEPT PRESCRIPTIONS |date=March 9, 1989 |newspaper=Deseret News}}</ref>

By the end of the decade, Thrifty Corp. was losing money for the now-renamed Pacific Enterprises.<ref name=":2" /> When the company's long-time president resigned in 1990, it kicked off a series of executive changes that continued through the early part of the decade.<ref>{{Cite web |last=Sanchez |first=Jesus |date=1990-11-27 |title=Contempo Casuals CEO to Head Thrifty Drug Chain |url=https://www.latimes.com/archives/la-xpm-1990-11-27-fi-5289-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref><ref>{{Cite web |last=Brooks |first=Nancy Rivera |date=1991-10-11 |title=Thrifty President Eve Rich Quits; 'Differences' Cited |url=https://www.latimes.com/archives/la-xpm-1991-10-11-fi-274-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref><ref>{{Cite web |last=Silverstein |first=Stuart |date=1991-08-07 |title=Thrifty Hires Lucky's William E. Yingling III |url=https://www.latimes.com/archives/la-xpm-1991-08-07-fi-323-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref><ref>{{Cite web |last=Archives |first=L. A. Times |date=1991-01-16 |title=Thrifty Corp. President Daniel A. Seigel has... |url=https://www.latimes.com/archives/la-xpm-1991-01-16-fi-135-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref><ref>{{Cite web |last=Archives |first=L. A. Times |date=1991-05-03 |title=Leonard H. Straus is retiring as chairman... |url=https://www.latimes.com/archives/la-xpm-1991-05-03-fi-1078-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref><ref>{{Cite web |last=White |first=George |date=1993-03-30 |title=Thrifty Drug CEO Resigns; Seigel Will Replace Him |url=https://www.latimes.com/archives/la-xpm-1993-03-30-fi-17021-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref> In 1991, Thrifty Corp. stores collectively lost $164 million.<ref name=":2" />

=== Management buyout === In 1992, Pacific Enterprises ended its retailing aspirations by selling most of the Thrifty Corp. brands to investment bankers Leonard Green & Partners for $275 million as part of a management buyout.<ref name=":3">{{Cite web |date=April 28, 1997 |title=Thrifty PayLess - Annual Report |url=http://findarticles.com/p/articles/mi_m3374/is_n8_v19/ai_19374390 |archive-url=https://web.archive.org/web/20080622215427/http://findarticles.com/p/articles/mi_m3374/is_n8_v19/ai_19374390 |archive-date=June 22, 2008 |access-date=July 11, 2025 |website=Drug Store News |via=BNET Business Network}}</ref> This included Thrifty Drug Stores, Bi-Mart, Big 5, Gart Bros., and MC Sporting Goods.<ref name=":2">{{cite news |url=https://www.upi.com/Archives/1992/05/22/Thrifty-chains-to-be-sold-for-275-million/2471706507200/ |title=Thrifty chains to be sold for $275 million |date=May 22, 1992 |first=Dave |last=McNary |work=United Press International}}</ref> PayLess Drug Stores, a subsidiary of Kmart, acquired Pay n' Save.<ref name=":1" />

By this time, Thrifty's stores were old and in need of updates. New management split the company's sporting brands into a separate operating division. Thrifty also left the Arizona and Nevada markets, closing all its stores in these states in 1992.<ref name="kdm-1992oct29">{{cite news |url=https://news.google.com/newspapers?nid=932&dat=19921029&id=_tlPAAAAIBAJ&sjid=rFMDAAAAIBAJ&pg=6627,542515 |title=22 Thrift Drug Stores in Arizona closing |newspaper=Kingman Daily Miner |date=October 29, 1992 |page=2 |author=}}</ref> Within a year, Thrifty had reduced the size of the chain by 20%.<ref name=":3" /> By 1993, Thrifty was the sixth-largest drugstore chain in North America with 497 California-based stores.<ref name=":0" /><ref name="lat-1993dec03" />

== History of Thrifty PayLess ==

=== Thrifty PayLess Holdings === In December 1993, it was reported that Kmart would sell its 572-store Payless drugstore chain to the owners of Thrifty Drug Stores in exchange for $592 million in cash, $100 million in debt securities, and a 47% stake in TCH Corporation, a new holding company controlled by Leonard Green, composed of Thrifty, Payless, and Bi-Mart.<ref name=":0" /> In order to appease regulators, TCH sold several stores in California, Oregon, and Washington<ref>{{Cite news |last= |first= |date=1994-02-25 |title=COMPANY NEWS; TCH TO SELL SOME STORES TO CLEAR WAY FOR PAYLESS DEAL |url=https://www.nytimes.com/1994/02/25/business/company-news-tch-to-sell-some-stores-to-clear-way-for-payless-deal.html |access-date=2025-07-09 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref> and over 200 stores in North Carolina and South Carolina.<ref>{{Cite news |last= |first= |date=1996-10-15 |title=J.C. Penney Agrees to Acquire About 200 Rite Aid Drugstores |url=https://www.wsj.com/articles/SB84533218597085500 |access-date=2025-07-11 |work=Wall Street Journal |language=en-US |issn=0099-9660 |url-access=subscription}}</ref>

The combined company was formed in April 1994 and renamed '''Thrifty PayLess Holdings, Inc.''' At the time of the deal, Thrifty operated 495 stores, PayLess operated 543 stores, and Thrifty PayLess ranked second in sales among the nation’s drugstore retailers.<ref name="lat-1993dec03" /> Payless closed 40 stores in nine states in 1994.<ref>{{Cite web |date=1994-03-03 |title=PAYLESS DRUG TO CLOSE 1 STORE IN S.L., 1 IN PRICE |url=https://www.deseret.com/1994/3/3/19095084/payless-drug-to-close-1-store-in-s-l-1-in-price/ |access-date=2025-07-11 |website=Deseret News |language=en}}</ref> It took Thrifty PayLess 18 months to merge both chain's POS and warehouse management systems.<ref name=":3" />

Tim McAlear of PayLess was chosen as the new company's chief executive and Leonard Green served as chairman. To accommodate McAlear, Thrifty PayLess chose to consolidate its Los Angeles Thrifty headquarters with its PayLess headquarters in Wilsonville, Oregon. However, just seven months later, McAlear was ousted by the board and the chairman of Bi-Mart was hired as chief executive and chairman, with Green stepping down.<ref>{{Cite web |last=White |first=George |date=1994-12-08 |title=Thrifty Payless Executive Replaced 7 Months After Firm Leaves L.A. : Merger: Chairman of Bi-Mart stores unit will lead company. Sources said former CEO did not consult sufficiently with board. |url=https://www.latimes.com/archives/la-xpm-1994-12-08-fi-6431-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref>

In 1995, Thrifty's Ontario, California, distribution center was closed, eliminating over 300 jobs.<ref>{{Cite web |last=White |first=George |date=1995-02-23 |title=Thrifty PayLess to Cut 300 More Southland Jobs : Relocation: Drugstore chain says opening of new outlets will counter some of the layoffs. |url=https://www.latimes.com/archives/la-xpm-1995-02-23-fi-35191-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref> It also pulled out of Hawaii, divesting 17 stores.<ref name=":3" /> By September 1995, Thrifty PayLess completed its departure from LA by donating its former headquarters to the Roman Catholic Archdiocese of Los Angeles.<ref>{{Cite web |last=Moore |first=Mary |date=1995-09-26 |title=Drugstore Firm Gives Building to Archdiocese : Business: Cardinal Mahony receives Thrifty PayLess' former Mid-Wilshire headquarters. The company, which moved to Oregon after merger, could get a $14-million tax write-off. |url=https://www.latimes.com/archives/la-xpm-1995-09-26-me-50191-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref> By February 1996, profits had improved, Thrifty PayLess went public, and the company launched Thrifty PayLess Health Services, its pharmacy benefit management division.<ref name=":3" />

=== Sale to Rite Aid === In December 1996, Rite Aid acquired 1,000 West Coast stores from Thrifty PayLess Holdings, creating a chain with over 3,500 drug stores.<ref name="lat-1996oct15">{{cite news |last=White |first=George |date=October 15, 1996 |title=Rite Aid to Buy Thrifty Chain for $2.3 Billion |url=https://www.latimes.com/archives/la-xpm-1996-10-15-fi-53942-story.html |newspaper=Los Angeles Times |url-access=subscription}}</ref><ref>{{Cite news |last=Bagli |first=Charles V. |date=1996-10-15 |title=Rite Aid to Buy Thrifty Payless for $1.3 Billion |url=https://www.nytimes.com/1996/10/15/business/rite-aid-to-buy-thrifty-payless-for-1.3-billion.html |access-date=2025-07-09 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref><ref>{{Cite news |last= |first= |date=1999-09-16 |title=Longs to Acquire 38 Rite Aid Stores |url=https://www.nytimes.com/1999/09/16/business/longs-to-acquire-38-rite-aid-stores.html |access-date=2025-07-09 |work=The New York Times |language=en-US |issn=0362-4331 |url-access=subscription}}</ref> The Thrifty PayLess corporate offices in Wilsonville, Oregon, were closed, and its functions were transferred to Rite Aid headquarters in Camp Hill, Pennsylvania.<ref>{{Cite web |date=1996-10-14 |title=RITE AID TO ACQUIRE THRIFTY PAYLESS |url=https://www.deseret.com/1996/10/14/19271572/rite-aid-to-acquire-thrifty-payless/ |access-date=2025-07-11 |website=Deseret News |language=en}}</ref> Leonard Green maintained an 11% share of Rite Aid after the sale and was named chairman in 1999.<ref>{{Cite web |last1=Goldman |first1=Abigail |last2=Vrana |first2=Debora |date=1999-11-16 |title=Green to Take Control at Rite Aid |url=https://www.latimes.com/archives/la-xpm-1999-nov-16-fi-33993-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref>

The acquisition was not immediately successful for the company. Rite Aid took a charge on the acquisition due to the amount of debt it needed to pay off.<ref>{{Cite news |last= |first= |date=1997-04-01 |title=Rite Aid's Profit Falls; PayLess Purchase Is Cited |url=https://www.wsj.com/articles/SB859852886715115000 |access-date=2025-07-11 |work=Wall Street Journal |language=en-US |issn=0099-9660 |url-access=subscription}}</ref> It was also slow to update its new West Coast stores and changes it made to advertising and merchandise mix slowed growth.<ref>{{Cite news |last=Coleman |first=Calmetta Y. |date=1998-09-03 |title=Rite Aid's Rapid Expansion Poses Problem for Chain |url=https://www.wsj.com/articles/SB90477401677191500 |access-date=2025-07-11 |work=Wall Street Journal |language=en-US |issn=0099-9660 |url-access=subscription}}</ref> Many of these stores were also twice the size of the typical Rite Aid location, which new leadership had trouble managing.<ref>{{Cite web |last=Fried |first=Lisa I. |date=April 28, 1997 |title=The Rite Aid challenge: integrating TPI - Thrifty Payless Inc - Annual Report - Industry Overview - Illustration |url=https://findarticles.com/p/articles/mi_m3374/is_n8_v19/ai_19374389 |access-date=July 11, 2025 |website=Drug Store News |via=BNET Business Network}}</ref> Rite Aid maintained the Thrifty and PayLess stores until 1998, when all locations were converted to the Rite Aid name.<ref>{{Cite web |last=White |first=George |date=1998-01-15 |title=Thrifty, PayLess Owner to Renovate Stores |url=https://www.latimes.com/archives/la-xpm-1998-jan-15-fi-8451-story.html |access-date=2025-07-10 |website=Los Angeles Times |language=en-US |url-access=subscription}}</ref>

By 1999, Rite Aid was looking to sell off hundreds of its stores located in Washington, Oregon, Idaho, Utah, and Colorado.<ref>{{Cite news |last1=Maremont |first1=Mark |last2=Berner |first2=Robert |date=1999-08-27 |title=Rite Aid Has Held Discussions With Suitors to Sell Some Stores |url=https://www.wsj.com/articles/SB935709367622479803 |access-date=2025-07-11 |work=Wall Street Journal |language=en-US |issn=0099-9660 |url-access=subscription}}</ref><ref>{{Cite news |last=Maremont |first=Mark |date=1999-11-12 |title=Rite Aid, Paring Back, Explores Sale of Most of West Coast Stores |url=https://www.wsj.com/articles/SB942363917808947479 |access-date=2025-07-11 |work=Wall Street Journal |language=en-US |issn=0099-9660 |url-access=subscription}}</ref> It sold 38 California stores to Longs Drug Stores.<ref>{{Cite web |last=Emert |first=Carol |date=September 16, 1999 |title=Longs to Buy 14 Rite Aids In Bay Area |url=https://www.sfchronicle.com/business/article/longs-to-buy-14-rite-aids-in-bay-area-2908488.php |access-date=July 11, 2025 |website=San Francisco Chronicle}}</ref> However, Rite Aid fired its chairman and chief executive in October 1999.<ref>{{Cite news |last1=Berner |first1=Robert |last2=Maremont |first2=Mark |date=1999-10-20 |title=As Rite Aid Grew, CEO Seemed Unable to Manage His Empire |url=https://www.wsj.com/articles/SB940373692189747952 |access-date=2025-07-11 |work=Wall Street Journal |language=en-US |issn=0099-9660 |url-access=subscription}}</ref> By January 2000, the company's new management team called off any future plans to sell former Thrifty PayLess.<ref>{{Cite web |date=2000-01-11 |title=Rite Aid reverses plans to sell stores |url=https://www.deseret.com/2000/1/11/19485110/rite-aid-reverses-plans-to-sell-stores/ |access-date=2025-07-11 |website=Deseret News |language=en}}</ref>

Thrifty PayLess, Inc., remained an active subsidiary of Rite Aid (owning stores purchased from Thrifty PayLess),<ref>{{Cite web |last= |first= |date=October 11, 2012 |title=Report: Rite Aid ordered to pay $800,000 settlement |url=https://chainstoreage.com/news/report-rite-aid-ordered-pay-800000-settlement |access-date=2025-07-10 |website=Chain Store Age |language=en}}</ref> as shown in the company's October 2023 Chapter 11 bankruptcy filings.<ref>{{Cite web |date=October 15, 2023 |title=Thrifty PayLess, Inc. Files For Bankruptcy |url=https://bkdata.com/business-bankruptcies/trenton-newjersey/10-15-2023/thrifty-payless-19114 |access-date=October 16, 2023 |website=BKData |language=en}}</ref>

On May 5, 2025, Rite Aid filed for Chapter 11 bankruptcy for the second time in 2 years, listing assets and liabilities between $1 billion and $10 billion. Rite Aid will sell all of its assets as part of its procedure, as it overcomes financial challenges such as debt, increased competition, and inflation, including Thrifty PayLess.<ref>{{Cite web |last=Knauth |first=Dietrich |date=May 5, 2025 |title=Rite Aid files for second bankruptcy in two years |url=https://www.reuters.com/business/healthcare-pharmaceuticals/rite-aid-intends-file-second-bankruptcy-announces-job-cuts-bloomberg-news-2025-05-05/ |access-date=May 5, 2025 |website=Reuters |language=en}}</ref>

On June 27, 2025, Rite Aid received court approval to sell its Thrifty Ice Cream subsidiary to Hilrod Holdings for $19.2 million. Hilrod Holdings is managed by Hilton Schlosberg and Rodney Sacks, who are also top executives for Monster Beverage.<ref>{{Cite web |last=Zara |first=Christopher |date=June 27, 2025 |title=Rite Aid's Thrifty ice cream brand gets sold to a business entity linked to Monster Energy executives |url=https://www.fastcompany.com/91359796/rite-aid-thrifty-ice-cream-brand-sold-to-monster-energy-execs |access-date=July 1, 2025 |website=Fast Company |language=en}}</ref>

== Thrifty Ice Cream == {{main|Thrifty Ice Cream}} thumb|right|Single scoop of Circus Animal Cookies ice cream on a cake cone, showing the distinctive flat-topped, flat-sided shape of the scoop as typically served at Thrifty Ice Cream dispensaries

Since 1940, Thrifty Drug Stores had manufactured its own brand of ice cream and charged customers an extremely low price for a single scoop of ice cream that was usually eaten inside the store as a loss leader to entice those customers to bring their entire families into the store on a regular basis to eat ice cream that was sold at or below cost while those same customers browse the aisle (while eating) and usually find other items to purchase before leaving the store.<ref name=lat-1969nov03>{{cite news |title=Thrifty Seeking to Broaden Image in Low-Key Campaign: Thrifty Opens Campaign to Wide |newspaper=Los Angeles Times |date=November 3, 1969 |page=D12 |last=Rossman |first=Martin |access-date= |url= |url-access= |id={{ProQuest|156420251}}}}</ref> The tradition continued on in the former Thrifty Drug Stores after Rite Aid purchased the pharmacy chain in 1996.

== Notes == * [https://web.archive.org/web/20050129103707/http://www.findarticles.com/p/articles/mi_m3092/is_v23/ai_3359900 Pay Less to jump $1 billion sales hurdle in 1984 Discount Store News, July 23, 1984] * [https://www.findarticles.com/p/articles/mi_m3092/is_n15_v27/ai_6513200 Pay Less changes mix, closes Wonder World units - Annual Industry Report, part 2 Discount Store News, July 18, 1988]{{Dead link|date=September 2013}} * [https://web.archive.org/web/20080622215427/http://findarticles.com/p/articles/mi_m3374/is_n8_v19/ai_19374390 Thrifty PayLess. Drug Store News, April 28, 1997]

== References == {{reflist|30em}}

== External links == * [https://www.fundinguniverse.com/company-histories/Thrifty-PayLess-Inc-Company-History.html History of Thrifty PayLess] (prior to acquisition by Rite Aid) * [http://heladosthrifty.com.mx/ Thrifty Ice Cream Mexico] {{Webarchive|url=https://web.archive.org/web/20141006085358/http://heladosthrifty.com.mx/ |date=2014-10-06 }} * [https://www.riteaid.com/thrifty Thrifty Ice Cream @ Rite Aid]{{dead link|date=August 2025}} * [http://www.ocregister.com/video/v/586313636001/news-food-latest A look inside the Thrifty ice cream plant (video)]

Category:Rite Aid Category:Skaggs family Category:Companies that filed for Chapter 11 bankruptcy in 2023 Category:Companies that filed for Chapter 11 bankruptcy in 2025 Category:Retail companies established in 1919 Category:Defunct pharmacies of the United States Category:Pay 'n Save Category:Retail companies disestablished in 1998 Category:Health care companies based in California

Thrifty PayLess

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