CVS bids for Rite Aid stores, patient files

CVS Health Corp. is trying to buy stores and patient data from Rite Aid Corp., the beleaguered pharmacy chain that is going out of business after filing for bankruptcy a second time earlier this month.

CVS, which already owns the largest chain of retail pharmacies in the U.S., put in a bid for a significant number of stores in Washington, Oregon, and Idaho, as well as patient prescription information, Rite Aid Chief Executive Officer Matthew Schroeder told employees Thursday, according to a recording of the meeting reviewed by Bloomberg.

The additional stores would broaden CVS’ reach in a part of the country where it has a smaller presence per capita than in other regions.

A CVS spokesperson declined to comment. Rite Aid didn’t immediately provide comment.

Rite Aid also has received multiple bids on some of its pharmacy assets, such as patient data and inventory, from Walgreens Boots Alliance Inc., Albertsons Cos., Kroger Co., Giant Eagle Inc. and others, Schroeder said. The potential buyers are interested in continuing to employ Rite Aid workers, he said.

“We are not going to emerge from bankruptcy,” Schroeder said to employees. “Once our assets are sold, Rite Aid will no longer exist.”

Walgreens, Albertsons, Kroger, and Giant Eagle did not immediately provide comment. Bids will be presented to the bankruptcy court on May 21.

Retail slows after spending splurge

U.S. consumers spent slightly more at retail stores last month after ramping up their shopping in March to get ahead of tariffs. Sales at retail stores and restaurants rose just 0.1% in April from March, the Commerce Department said Thursday. That is much lower than the previous month’s 1.7% gain, which reflected a surge in car sales as consumers accelerated purchases ahead of President Trump’s 25% duty on auto imports that went into effect this month.

Last month’s tiny increase after the March surge makes it harder to get a clear read on consumer spending trends and reflects the ongoing turmoil and uncertainty in the economy in the wake of Trump’s stop-and-go tariff policies. Many publicly-traded companies have withdrawn or held off on the traditional practice of forecasting their revenues and earnings for the rest of this year because the economic landscape has become so chaotic.

Meanwhile, Americans are increasingly gloomy about the economy’s prospects, according to sentiment surveys, but it’s not yet evident whether that will translate into reduced spending and slower economic growth.

30-year mortgage rate rises

The average rate on a 30-year mortgage in the U.S. edged above 6.8% this week, returning to where it was just three weeks ago.

The rate increased to 6.81% from 6.76% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.02%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose. The average rate ticked up to 5.92% from 5.89% last week. It’s down from 6.28% a year ago, Freddie Mac said. Mortgage rates are influenced by several factors, including global demand for U.S. Treasurys, the Federal Reserve’s interest rate policy decisions and bond market investors’ expectations about the economy and inflation.

The average rate on a 30-year mortgage has remained relatively close to its high so far this year of just above 7%, which it set in mid-January. The average rate’s low point so far was five weeks ago, when it briefly dropped to 6.62%.

Compiled from Associated Press and Bloomberg reports.