Rite Aid closing 5 of 6 stores in Shreveport, LA

[storewanderer]

http://www.ksla.com/story/34505773/rite ... in-10-days

I guess Walgreens wants the one store that is being kept open. Ironically the one store being kept open looks to be the only one that did not have Save a Lot inside? Fred's won't be having an expansion in that town, I guess.

I see the closing stores all have Save a Lot inside too; I did not know they did that in LA. Walgreens seems to be very close to these locations.

The one on Jewella on Google Images has a "grand opening" banner up in February 2016; I wonder if that is when they added Save a Lot? I also see a 2014 image of the Jewella Store with the label "Food Pantry." What is that? I never saw that "Food Pantry" on Rite Aid before and it appears to be trademarked...?

[wnetmacman]

http://www.ksla.com/story/34505773/rite ... in-10-days

I guess Walgreens wants the one store that is being kept open. Ironically the one store being kept open looks to be the only one that did not have Save a Lot inside? Fred's won't be having an expansion in that town, I guess.

I see the closing stores all have Save a Lot inside too; I did not know they did that in LA. Walgreens seems to be very close to these locations.

The one on Jewella on Google Images has a "grand opening" banner up in February 2016; I wonder if that is when they added Save a Lot? I also see a 2014 image of the Jewella Store with the label "Food Pantry." What is that? I never saw that "Food Pantry" on Rite Aid before and it appears to be trademarked...?

Of the 5 stores:
Feb. 24: Store 7332, 3810 Jewella Ave. - Originally K&B, possibly Big Chain before. Pretty old store, in a bad section of town. I'm really surprised it has lasted this long. Walgreens and CVS on other corners here.
Feb. 27: Store 7328, 5711 Youree Drive - Originally Big Chain, then K&B for a good number of years. Was once the Shreveport flagship for K&B. Walgreens on opposite corner of street.
Feb. 28: Store 7335, 6940 Pines Road - newer K&B, built in the 90's. Area has changed, plus Walgreens and CVS on opposite corners probably didn't help.
March 1: Store 7330, 1850 N. Market St. - new build Rite Aid. Replaced an old K&B across the street.
March 2: Store 7331, 2758 W. 70th St. - Old K&B in a largely bad section of town.

The one store remaining is on Pierremont Ave., just off Line. It's in a good section. I can't believe they'd keep one store in a market like that. As far as the Grand Opening in 2/16 on Jewella, it was for a remodel for the mentioned Food Pantry becoming Save-A-Lot. I don't know of any other S-A-L conversions in LA. We only have a few stores left in my part of the state.

[Alpha8472]

It is unfortunate that those Save A Lot conversions didn't work out. Those stores were no longer drugstores. They became grocery stores with a pharmacy inside. The focus was on selling groceries, which has lower margins than expensive over the counter drugs.

[SamSpade]

I sure hope none of these Shreveport locations are in a situation like this! (from the Tacoma News Tribune)

After reaching out to city officials, the building’s Kansas-based owners, and representatives from Rite Aid — the company that still has roughly five years left on the 22-year lease it originally signed for the property, at an annual cost of $526,860 — I can say with certainty that the new fence is little more than a continuation of the depressing story of this neglected piece of Hilltop.

Read more here: http://www.thenewstribune.com/news/loca ... rylink=cpy

Sheesh, $525,000/year for a vacant property?

[wnetmacman]

I sure hope none of these Shreveport locations are in a situation like this! (from the Tacoma News Tribune)

After reaching out to city officials, the building’s Kansas-based owners, and representatives from Rite Aid — the company that still has roughly five years left on the 22-year lease it originally signed for the property, at an annual cost of $526,860 — I can say with certainty that the new fence is little more than a continuation of the depressing story of this neglected piece of Hilltop.

Read more here: http://www.thenewstribune.com/news/loca ... rylink=cpy

Sheesh, $525,000/year for a vacant property?

The Youree store is in a high development area, though it's an older building. I could see it going for big bucks. None of the other 4 are in decent neighborhoods, and could even be torn down before it's over with. I know Jewella was part of K&B's entry into town, and it's been a drugstore for a loooooooong time. It's a big lot, and could be recycled for other uses. Two of the higher traffic, lower end grocery stores are also nearby.

[storewanderer]

I am still confused, what is "The Food Pantry?"

Was that some sort of other grocery operation within these Rite Aids?

Rite Aid actually has a website set up for these stores:
https://save-a-lot.riteaid.com/stores

It is not unusual for Rite Aid to keep remote stores open. They kept a store in St. George, UT open (featuring a 1990's Osco interior) after pulling out of Las Vegas/Mesquite nearby and there is no other Rite Aid until you get up into Salt Lake City. This is a VERY low volume operation (barely over a hundred customers a day); no idea why it is open. They also kept one lone store in Gardnerville, NV open (a late 80's 45degree Payless which was then remodeled in about 2012 into the current Rite Aid interior) after closing or trading the rest of the stores in Nevada.

Ironically I would think a Save a Lot combination would be right up Fred's alley so it is curious these stores are being closed rather than divested.

[SamSpade]

Maybe this was a factor? New Save-a-Lot owners...

Rite Aid has entered into a licensing agreement with Save-A-Lot to add the discount, limited assortment grocery store concept to Rite Aid’s ten existing stores. . .

From 2010 when the concept started in Greenville, SC area.

[wnetmacman]

I am still confused, what is "The Food Pantry?"

Was that some sort of other grocery operation within these Rite Aids?

As I understood it, the Food Pantry was a way of using space in an otherwise overly large leased space and filled it with drugstore priced food items. None of the Rite Aid stores near me were big enough for this.

Ironically I would think a Save a Lot combination would be right up Fred's alley so it is curious these stores are being closed rather than divested.

Not really. Save-A-Lot largely carries off brand items. Most, if not all, of Fred's food offerings are name brand or Fred's brand items. The S-A-L deep discount model and look wouldn't work for them. Give it a few days, though, and they might change their minds.

I will say this: of the 6 Rite Aid stores in Shreveport, the one closing is the only one without a Walgreens nearby. While both have stated that the merger isn't the reason for the closures, I don't buy it for a minute. Fred's does have a presence in Shreveport, and 5 more stores would be overkill in a large city as such.

[storewanderer]

I never saw Rite Aid use "Food Pantry." I saw them use "Food Mart" or similar language.

Food Pantry looked to be trademarked too...

The Save a Lot idea clearly ruined them in Shreveport (looks to be a lot of competition though). The losses must have been pretty major for them to pull the plug on it after a year. Also it is interesting they did these Save a Lot conversions in February 2016 as the merger had already been announced at that time. How did these stores look inside? I wonder how much money they spent on the Save a Lot conversions.

[BillyGr]

I never saw Rite Aid use "Food Pantry." I saw them use "Food Mart" or similar language.

Food Pantry looked to be trademarked too...

The Save a Lot idea clearly ruined them in Shreveport (looks to be a lot of competition though). The losses must have been pretty major for them to pull the plug on it after a year. Also it is interesting they did these Save a Lot conversions in February 2016 as the merger had already been announced at that time. How did these stores look inside? I wonder how much money they spent on the Save a Lot conversions.

Food Mart sounds familiar - any chance that there was some other store in that particular area already using the name Food Mart (perhaps a convenience store) that would have caused them to have to change so as not to face issues?

I can only think of one store around here where they enlarged their food section (on their own, not part of the Save a Lot deals), as this particular store is in a city area without nearby grocery options (thus likely higher demand) and also happens to be a building that once was a 5 & 10 type store with 2 levels (they only use the upper level, and not even all of that, as selling space), so they had room to work with.