Article: With Rite Aid Staying, Rivals Gird for Drug-Store War.

Now that Rite Aid Corp. has decided to stay put in Southern California, the troubled drugstore chain could soon be facing stiffer competition.

Carlo Michelotti, chief executive of the California Pharmacists Association trade group, said competing chains are poised to consolidate or expand to challenge the 161 Rite Aid stores in L.A. County. He expects to see a flurry of mergers and acquisitions in which grocery store giants could scoop up drug stores -- just as Albertson' s bought the Sav-On and Osco chains as part of its $9.5 billion purchase of American Stores in June.

"There are lots of supermarket groups and chain pharmacies that keep looking at ...

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