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Alex Grass

Alex Grass (August 3, 1927 – August 27, 2009) was an American businessman and philanthropist best known as the founder of Rite Aid Corporation, which he built from a single discount store in Scranton, Pennsylvania, into one of the largest pharmacy chains in the United States.^[1]^[2] Born in Scranton to Louis and Rose Grass, he earned a law degree from the University of Florida in 1949 before entering the retail sector.^[1] In 1962, Grass opened the Thrif D Discount Center, focusing on health and beauty aids; by 1968, it was renamed Rite Aid and went public on the American Stock Exchange, later moving to the New York Stock Exchange in 1970.^[2] Under his leadership as chairman and CEO, the company expanded rapidly through acquisitions, reaching 267 stores across 10 states within a decade, surpassing $1 billion in sales by 1983, and becoming the nation's largest drugstore chain by store count with over 4,000 locations by 1996 after key deals like the 1987 purchase of Gray Drug.^[2]^[1] Grass stepped down as CEO in 1995 but remained influential in business, co-owning the Fleer/SkyBox sports trading card company from 1999 to 2005.^[1] A prominent philanthropist, particularly in Jewish causes, Grass established the Alexander Grass Foundation, which supported education, healthcare, and community initiatives; notable donations included $14.5 million for a medical building at PinnacleHealth System in Harrisburg, Pennsylvania, $1.5 million to create the Alex Grass School of Business Leadership at Harrisburg Area Community College, $2 million for an oncology professorship at Johns Hopkins University, and $1.5 million to the University of Florida for Jewish studies and law facilities.^[1]^[3]^[4] He also served as chairman of the United Jewish Appeal and contributed $10 million through his foundation to develop the Alexander Grass Campus for Jewish Life in Harrisburg.^[5]^[6] Grass died of lung cancer at his home in Harrisburg at age 82 after a decade-long battle with the disease.^[1]

Early life

Family background and upbringing

Alexander Grass was born on August 3, 1927, in Scranton, Pennsylvania, to Jewish parents Louis and Rose Grass.^[1]^[7] His family faced significant financial hardships during the Great Depression, with his father working as a businessman.^[8] Louis Grass's death in 1936, when Alex was nine years old, further strained the household, prompting Rose Grass to relocate the family to Miami Beach, Florida.^[9]^[10] Growing up amid these economic challenges shaped Grass's early perspective on resilience and opportunity. In Scranton, a city with a modest but active Jewish community during the 1930s, the family participated in cultural and religious traditions that instilled a strong sense of identity, though specific details of their involvement remain limited in records.^[7] These formative experiences in a working-class Jewish household, marked by loss and adaptation, influenced Grass's later emphasis on community support and entrepreneurial drive, though he pursued education as a pathway out of hardship.^[8]

Education

After graduating from high school amid the economic hardships of the Great Depression, Alex Grass pursued higher education to build a stable professional future, utilizing the G.I. Bill to fund his studies.^[8]^[9] Grass enrolled at the University of Florida, where he focused on legal studies tailored to taxation and business law, reflecting his interest in fields that intersected regulatory and commercial practices.^[11] He earned his Bachelor of Laws (LL.B.) degree from the university's law school in 1949, a credential that equipped him with foundational knowledge in corporate governance and fiscal policy.^[12]^[13] Following graduation, Grass gained admission to the Pennsylvania bar and began his early legal career as a tax attorney, initially with the Internal Revenue Service and subsequently with the Pennsylvania Department of Revenue, where he applied his academic training to state-level fiscal administration.^[10]^[9] This period marked his transition from academia to professional practice, honing skills in legal compliance that would later inform his business endeavors.^[14]

Business career

Pre-Rite Aid ventures

After graduating from the University of Florida College of Law in 1949, Alex Grass married Lois Lehrman, daughter of Louis Lehrman, a prominent Harrisburg businessman who owned Louis Lehrman and Sons, a wholesale grocery distribution company.^[15] This union connected Grass to the Lehrman family, and by 1951, he joined the family firm in Harrisburg, Pennsylvania, where he gained hands-on experience in regional grocery distribution.^[10]^[16] Within the Lehrman company, Grass focused on expanding product lines beyond traditional groceries, particularly distributing health and beauty aid products to independent retailers through rack-jobbing—a method of supplying pre-stocked display racks to stores.^[8] In 1958, he established a subsidiary called Rack Rite Distributors to specialize in providing these non-food items, such as cosmetics and over-the-counter remedies, to the firm's grocery customers, honing his understanding of retail supply chains.^[10] Through this role, Grass identified significant market gaps in discount retailing for health and beauty aids, especially as legal barriers to price competition began to erode in the late 1950s following challenges to state fair trade laws that had previously restricted discounting.^[8]^[17] By the early 1960s, Grass's insights from distribution—coupled with the growing demand for affordable, self-service retail formats—positioned him to pursue independent ventures, culminating in the opening of his first discount store in 1962.^[8]

Founding and expansion of Rite Aid

Alex Grass founded Rite Aid in 1962 by opening the first Thrif D Discount Center in Scranton, Pennsylvania, on September 12, initially focusing on health and beauty aids sold at discount prices in a narrow 17-foot-wide storefront at 401 Lackawanna Avenue.^[18]^[19] This venture capitalized on recently repealed fair trade laws that had previously restricted discounting, allowing Grass to offer competitive pricing on non-prescription items while drawing from his prior experience in distributing such products through Rack Rite Distributors.^[20] The company experienced rapid early expansion, growing from one store in 1962 to six by the end of 1963, 12 by 1964 (entering New Jersey and Virginia), 25 by 1965 (reaching Connecticut), and 117 by 1968 (after acquiring the 47-store Daw Drug Co.).^[20] That year, the chain rebranded as Rite Aid Corporation and went public on the American Stock Exchange, issuing 350,000 shares at $25 each and raising $8.75 million to fuel further development.^[20]^[11] Under Grass's leadership, Rite Aid pursued national growth through aggressive acquisitions and innovative operational strategies, transforming it into one of the largest U.S. drugstore chains. Key acquisitions included the 47-store Daw Drug Co. in 1969, the 49-store Thomas Holmes Corp. and 50-store Warner chain in 1973, the 52-store Keystone Centers in 1976, the 99-store Read’s Inc. in 1977, and the 224-store Perry Drug Stores for $132 million in 1995, which helped expand the footprint to nearly 3,000 locations by the mid-1990s.^[20] Growth strategies emphasized discount pricing on health and beauty aids, the introduction of private-label products (starting with 70 items in 1967 and expanding to 260 by 1969), and the integration of pharmacies into stores beginning in 1966 to boost revenue from prescriptions.^[20] By 1995, these efforts had positioned Rite Aid as the largest U.S. chain by store count and the second-largest by revenue.^[11] Grass's key operational decisions centered on store format and merchandising, favoring freestanding locations with pharmacies over smaller, leased spaces to allow for broader inventory and higher traffic. He prioritized front-end merchandising of health and beauty aids, which accounted for a significant portion of sales, and developed larger prototype stores around 10,500 square feet to enhance product visibility and customer experience.^[20] As founder, chief executive officer, and chairman from 1962 until his retirement in March 1995, Grass oversaw this evolution, passing leadership to his son Martin while Rite Aid stood at its peak under his direction.^[11]^[20]

Post-retirement business activities

After retiring as Rite Aid's chairman and chief executive officer in March 1995, Alex Grass pursued business interests independent of the company's day-to-day operations, focusing on new ventures in unrelated sectors.^[1] He remained on the board of directors but distanced himself from management decisions, allowing his son Martin Grass to lead the chain's expansion.^[8] In February 1999, Grass, along with his son Roger Grass, acquired Fleer/SkyBox International, a prominent sports trading card company and subsidiary of Marvel Entertainment, for $26 million.^[21] The purchase marked Grass's entry into the collectibles industry, where Fleer/SkyBox was known for producing licensed trading cards featuring athletes and entertainment figures. Under their ownership, the company operated until financial challenges in the trading card market led to its closure and sale in 2005.^[1] This venture represented a diversification of Grass's portfolio away from retail pharmacy, leveraging his post-Rite Aid wealth. That same year, Rite Aid faced a major accounting scandal under Martin Grass's leadership as CEO, involving the inflation of earnings by approximately $1.6 billion through fraudulent practices such as improper revenue recognition and vendor rebates.^[22] The revelations, disclosed in October 1999, prompted Martin Grass's resignation, a significant restatement of financials, and a sharp decline in the company's stock value, severely impacting its market position.^[23] Alex Grass, who had no operational role at the time, was not implicated in the fraud.^[24] Throughout the late 1990s and early 2000s, Grass maintained a low-profile approach to business, with limited involvement in minor investments related to pharmaceuticals, such as a 30% stake in LNK International, a supplier of over-the-counter products, acquired through a family trust in 1998.^[25] These activities underscored his shift toward advisory and passive roles in the retail and pharma sectors, prioritizing independence from Rite Aid amid its challenges.^[26]

Philanthropy

Support for education

Alex Grass made substantial contributions to educational institutions, particularly those emphasizing business leadership and academic programs at his alma mater. In 2007, he pledged $1.5 million over ten years to Harrisburg Area Community College (HACC) to establish the Alex Grass School of Business Leadership, which transformed the college's business curriculum by integrating leadership development, real-world case studies, and industry partnerships to prepare students for executive roles.^[27]^[28] This initiative included endowments for technology resources and ongoing support for business programs, enabling expanded offerings in entrepreneurship and management training.^[4] Grass also supported higher education at the University of Florida, where he earned his law degree in 1949, with $1.5 million in total contributions, including $1 million to endow the Alexander Grass Chair in the Center for Jewish Studies.^[29]^[30] This endowment enhanced graduate programs, research on topics such as the Holocaust and Middle East relations, and resources for visiting scholars and conferences, thereby strengthening the center's role in serving Florida's Jewish community and broader academic pursuits.^[30] These efforts underscored his focus on business education and scholarly advancement, informed by his experience growing Rite Aid into a national chain.^[10]

Contributions to Jewish and health initiatives

Alex Grass's commitment to Jewish causes was deeply rooted in his upbringing in a Jewish family in Scranton, Pennsylvania.^[10] As national chair of the United Jewish Appeal (UJA) in 1984, Grass led the organization to a record-breaking fundraising total of $640 million, supporting Jewish communities worldwide through education, social services, and humanitarian aid.^[8] He later served as a member of the United Jewish Communities/Federation board of trustees, continuing his leadership in Jewish philanthropy.^[5] Through the Alexander Grass Foundation, Grass provided a $10 million gift to establish the Grass Campus for Jewish Life in Harrisburg, Pennsylvania, as part of a multi-year comprehensive campaign launched by the Jewish Federation of Greater Harrisburg to strengthen the local Jewish community.^[31] The initiative aimed to create a central hub for educational, cultural, philanthropic, and wellness programs on a six-acre campus, fostering community connections and enhancing Jewish life in the region.^[6] The foundation challenged the community to match the gift for capital needs, operations, and program development.^[31] Grass also supported the Hebrew University of Jerusalem by funding the establishment of the Alexander Grass Center for Drug Design and Synthesis of Novel Therapeutics in 1993, advancing research in pharmaceutical innovation and novel therapeutic development.^[10] In health initiatives, Grass donated $2 million to Johns Hopkins University to endow the Alex Grass Professorship in Oncology within the Sidney Kimmel Comprehensive Cancer Center, recognizing the institution's advancements in cancer research and treatment.^[3] Additionally, he contributed $14.5 million to PinnacleHealth System (now part of UPMC) in Harrisburg for the construction of the Alex Grass Medical Sciences Building, which houses specialized services including bone and joint institutes, laboratory facilities, and maternal health programs.^[32] The Alexander Grass Foundation, established by Grass, distributed millions annually in grants to Jewish and health-related organizations through 2009, including support for community federations, medical centers, and research efforts aligned with his philanthropic priorities.^[33]

Personal life

Marriages and family

Alex Grass married Lois Lehrman in 1950 while working as a lawyer in Florida, and the couple relocated to Harrisburg, Pennsylvania, where he joined her family's grocery distribution business.^[15]^[26] Their marriage lasted 23 years and produced four children: daughters Linda and Elizabeth, and sons Martin and Roger.^[15]^[8] The family settled in the Harrisburg area, where Grass raised his children amid a close-knit household rooted in Jewish heritage.^[34] The couple divorced in 1973.^[15] In 1974, Grass married Louise Buch Gurkoff, with whom he shared a home in Susquehanna Township near Harrisburg until her death in 2007.^[15]^[35] Throughout his later years, Grass remained connected to his adult children, who pursued lives in diverse locations such as New York, Florida, Israel, and Baltimore, Maryland, fostering ongoing family bonds beyond his professional endeavors.^[8]^[1]

Illness and death

In 1999, Alex Grass was diagnosed with lung cancer, beginning a decade-long battle with the disease.^[8] He underwent treatment while continuing his philanthropic and business activities, though the illness progressively weakened him in his later years.^[15] Grass died on August 27, 2009, at the age of 82, from respiratory failure caused by complications of lung cancer, at his home in Harrisburg, Pennsylvania.^[8] Rabbi Peter Kessler, who was present at the time, confirmed the cause of death.^[8] His daughter, Elizabeth Grass Weese, announced the passing to the media, noting his long struggle with the illness.^[1] The funeral service was held on August 30, 2009, at 11 a.m. at Temple Ohev Sholom in Harrisburg, attended by approximately 400 mourners from the Jewish community, business circles, and local organizations.^[36] Following an hour-long ceremony, his body was transported to Mount Moriah Cemetery in Lower Paxton Township for a brief burial service.^[36]^[37] Public tributes highlighted Grass's enduring legacy as a philanthropist and community leader; Israeli activist Natan Sharansky described him as "a leader of immense proportions, a true lover of Israel and a great philanthropist."^[15]

References

[1]
Alex Grass dies at 82; founder of Rite Aid - Los Angeles Times
Aug 29, 2009 · Alex Grass, who opened a small health and beauty aids store in Scranton, Pa., in 1962 and built it into Rite Aid Corp., one of the nation's largest drugstore ...Missing: biography | Show results with:biography
[2]
A Quick Look at Rite Aid's History - Investopedia
Alex Grass founded Rite Aid in 1962 originally as Thrift D Discount Center. Rite Aid acquired Envision Pharmaceutical Services for $2 billion in 2015.
[3]
$$20-Million Pledged to College; Other Gifts - Chronicle of Philanthropy
(Baltimore): $2-million from Alex Grass, founder of the Rite Aid Corporation, for an oncology professorship in the medical school. Spring Hill College ...
[4]
HACC Foundation receives $3.5 million in gifts
Alex Grass, retired Rite Aid CEO and well-known philanthropist, gave $1.5 million to HACC to establish the Alex Grass School of Business Leadership. The ...
[5]
Alex Grass, former Rite Aid CEO and UJA chair, dies
Aug 31, 2009 · Alex Grass, the founder of the Rite Aid pharmacy chain and a prominent Jewish philanthropist, has died. ... Choose an amount to donate. US ...
[6]
Federation Launches Comprehensive Campaign to Strengthen ...
The campaign is steered by a $10 million gift from the Alexander Grass Foundation, which covered the purchase cost and more for the campus. The Federation hopes ...
[7]
Alex Grass - NNDB
Born: 3-Aug-1927. Birthplace: Scranton, PA Died: 27-Aug-2009. Location of death: Harrisburg, PA Cause of death: Cancer - Lung. Gender: Male Religion: JewishMissing: background | Show results with:background
[8]
Alex Grass - Age, Phone Number, Contact, Address Info, Public ...
Grass was born in Scranton, Pennsylvania to Jewish parents, Louis and Rose Grass. His father, a businessman whom Grass described in 2002 as " relatively ...
[9]
Scranton native and Rite Aid founder Alex Grass dies after 10-year ...
Aug 28, 2009 · The Grass family left the city in 1936 for Miami Beach, Fla., following the untimely death of Mr. Grass' father. Growing up, Mr. Grass worked at ...
[10]
Alex Grass: Rite Aid's Success Led to His Many Philanthropies
Feb 11, 2024 · Alex Grass built Rite Aid into one of the largest chain drugstores in America and also was a major supporter of Jewish institutions in his home state of ...Missing: biography | Show results with:biography
[11]
Alex Grass, Who Helped to Start Rite Aid, Dies at 82
Aug 28, 2009 · Mr. Grass was a founder of the Rite Aid Corporation as well as its chairman and chief executive as it expanded nationwide. Today it operates ...
[12]
Rite Aid founder began with one store in his hometown
Aug 29, 2009 · Alex Grass, who opened a small health and beauty aids store in Scranton, Pa., in 1962 and built it into Rite Aid Corp., one of the nation's largest drugstore ...Missing: occupation | Show results with:occupation
[13]
Alexander Grass Scholars Program
Mr. Grass completed his law degree at UF in 1949. Beyond his success in business, he is remembered for his commitment to community service and his generosity as ...
[14]
Ripple Effects: Center for Humanities and the Public Sphere ... - News
Jun 27, 2024 · ... Alexander Grass Foundation. Grass, founder of Rite Aid Corporation, earned his law degree from UF in 1949. Before his death in 2009, he ...
[15]
Alex Grass - Alchetron, The Free Social Encyclopedia
Oct 7, 2024 · He took a position with the Pennsylvania state Department of Revenue. Grass became a businessman during the early 1950s partially due to his ...<|control11|><|separator|>
[16]
Alexander Grass Obituary (2009) - Harrisburg, PA - Patriot-News
Alexander Grass died Thursday night at his home in Harrisburg, Pennsylvania. He was 82. Grass had battled lung cancer for 10 years.Missing: background Scranton
[17]
Powerbook: Lois Lehrman Grass - Central Penn Business Journal
Nov 4, 2011 · Her father ran a successful family grocery business. Her husband, Alex, was an attorney who came to work in the business. He went on to ...Missing: law | Show results with:law
[18]
Family Business | The Stacks Reader
He is referring to a recent write-up on the Rite Aid Corporation, which his father, Alex Grass, founded in 1962 and ran imperiously until 1995, when Martin took ...Missing: occupation | Show results with:occupation
[19]
First Rite Aid Corporation Drugstore - The Historical Marker Database
This plaque commemorates the opening of the first Rite Aid Corporation drugstore on September 12, 1962 in Scranton, Pennsylvania. Alexander Grass, founder ...
[20]
Rite Aid got its start in Scranton - Hazleton Standard Speaker
Oct 6, 2012 · RITE AID Alex Grass opened his first Thrift-D Discount Center in Scranton on Sept. 12, 1962, and went public as Rite Aid six years later.Missing: career | Show results with:career<|control11|><|separator|>
[21]
Rite Aid Corporation - Company-Histories.com
In 1968 Rite Aid made its first public stock offering, issuing 350,000 shares at $25 per share on the American Stock Exchange, as well as formally changing its ...
[22]
GRASS IS ALWAYS GREENER: FLEER/SKYBOX SOLD TO FAMILY
Feb 2, 1999 · BECKETT reports that Marvel announced that it entered into a definitive agreement for the sale of Fleer/SkyBox for a purchase price of $26M in ...
[23]
SEC Announces Fraud Charges Against Former Rite Aid Senior ...
Jun 21, 2002 · Grass caused Rite Aid to fail to disclose his personal interest in three properties that Rite Aid leased as store locations. Rite Aid was ...
[24]
Great frauds in history: Martin Grass's debt binge - MoneyWeek
Sep 16, 2020 · Martin Grass borrowed heavily to fund a string of acquisitions, then cooked the books to manage the debt, inflating profits by $1.6bn.
[25]
Ex-Rite Aid boss gets 8-year prison term - NBC News
May 27, 2004 · Grass was sentenced to eight years in prison Thursday for conspiring to falsely inflate the value of the company his father founded and cover up ...Missing: Louis occupation
[26]
GRASS GETS SMOKES – RITE AID CEO CAUGHT IN NON ...
Feb 11, 1999 · In one, Grass' father Alex, the founder of Rite Aid and its CEO until 1995, invested in a company that sold millions of dollars in over-the ...
[27]
Grass, Rite Aid founder, dies at 82 - Chain Drug Review
Sep 14, 2009 · Alex Grass, who opened a small health and beauty aids store in Scranton, Pa., in 1962 and built it into Rite Aid Corp., now the nation's third-largest drug ...Missing: biography | Show results with:biography<|control11|><|separator|>
[28]
Alex Grass gift of $1.5M establishes School of Business Leadership ...
Alex Grass, retired Rite Aid CEO, has given $1.5 million to the college to establish the Alex Grass School of Business Leadership, which will open with the fall ...Missing: donation | Show results with:donation
[29]
Grass gives HACC $1.5 million - PennLive.com
Jun 2, 2007 · He never attended HACC. He earned his law degree at the University of Florida. Miami Beach was nice. But Harrisburg is home.
[30]
Obituary: Alex Grass / Founder of Rite Aid drugstore chain
Aug 29, 2009 · Alex Grass, who founded Rite Aid Corp. and built it into one of the nation's largest drugstore chains, has died of lung cancer.
[31]
Alexander Grass Chair in Jewish Studies - UF Advancement
University of Florida law alumnus of 1949, Alexander Grass, established this $1 million endowment at UF to fund an eminent scholar chair in Jewish Studies.Missing: degree | Show results with:degree
[32]
About - The Alexander Grass Campus for Jewish Life, Harrisburg, PA
The Alexander Grass Campus for Jewish Life is the new and forever home for Jewish Harrisburg, a safe and nurturing space to learn, celebrate, and connect.Missing: Scranton 1930s<|control11|><|separator|>
[33]
Alex Grass: a true humanitarian - PennLive.com
Aug 29, 2009 · He was a devout Jew and a staunch supporter of the local Jewish community. The $9.4 million Alex and Louise Grass United Jewish Community on ...Missing: background | Show results with:background
[34]
Alexander Grass Foundation - Grantmakers.io Profile
Alexander Grass Foundation. Mechanicsburg, PA. monetization_on; account_circle; public; lock. Summary. Assets. $42M. Distributions. $7.2M. Contributions. $5.5M.Missing: total | Show results with:total
[35]
Lois Lehrman Grass, Harrisburg civic leader and arts patron, has died
Sep 21, 2022 · In 1950, she was married to Rite Aid founder and fellow philanthropist Alexander Grass, with whom she had four children. The pair divorced ...Missing: marriages Louise
[36]
Louise Grass, wife of Alex Grass, dies 81 - PennLive.com
May 29, 2007 · Louise Buch Gurkoff Grass, who quietly supported the Jewish community here and in Israel, died yesterday at her home in Susquehanna Twp. She ...
[37]
Alexander Grass, Rite Aid founder, laid to rest - pennlive.com
Aug 30, 2009 · After the hourlong service, Grass' body was taken to Mount Moriah Cemetery, Lower Paxton Township, where he was buried after a brief service.
[38]
Rite Aid founder Alex Grass dies - Central Penn Business Journal
Aug 31, 2009 · Alexander Grass opened his first drugstore in 1962 in Scranton. That store led to the birth of East Pennsboro Township, Cumberland County ...Missing: early | Show results with:early