Decline
By the late 1950s, Rexall's business model of unitary franchised stores, with each store owned independently by the local pharmacist, was already coming under attack by the discount chains, such as Thrifty Drug and Eckerd. These well-financed corporate entities were able to drive down costs by means of block purchasing, and were focused on growth. By 1977, the value of the Rexall business had deteriorated to the point that it was sold to private investors for $16 million. The investors divested the company owned stores, though existing franchise retailers were able to keep the Rexall name. However, these tended to be weaker stores, and very few kept the name as time progressed. The company did continue to distribute vitamins, health foods, and plastic items.
Across the United States, there remain some franchise retailers still using the Rexall name.
In the early 1980s, Rexall, headed by Howard K. Vander Linden, a third-generation Rexall employee, was the subject of a hostile takeover by an organization headed by Larry Brown. The company almost immediately slid into decline.
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