Rite Aid closing at least 63 stores

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Re: Rite Aid closing at least 63 stores

Post by buckguy »

Higher than expected losses (attributed to store closures). Sales up but by less than the rate of inflation. Not a good call for them, but it sounds like it was peppered by the usual management happy talk

https://www.marketwatch.com/story/rite- ... od=opinion
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Re: Rite Aid closing at least 63 stores

Post by storewanderer »

Horrible report. Surprised management did that "investor day" trying to court retail investors a few weeks ago, knowing what was coming down the pipe with this report.

If it is costing so much to close stores maybe you shouldn't be closing so many of the stores...? Maybe you should be trying to fix the stores, especially newer stores that have leases running through 2029 like they've done in a couple instances in Sacramento suburbs.

Also don't understand why they are leasing space for a new tech office in NC. No stores in NC.

Something is not working at this point. Under previous management teams there have always been broken areas but it seemed like there were noticeable improvements in some areas. Bob Miller stabilized the finances and restocked empty stores. Mary Sammons worked on changing the culture/attitude of the middle management, started to build some new stores again, and tried to get things stabilized then the Eckerd mess did not end so well. Standley got the finances in the best shape of anyone, store operations in the best shape of anyone (but the work Sammons did built the foundation to make that happen), had great success with the Wellness program, then blew everything with the two failed merger attempts. This current CEO I don't even know what to say the accomplishments have been- destocking the stores, horrible finances despite the whole COVID program which sent so many customers to drugstores for COVID services, creating situations where some stores have almost NO employees (heard Grass Valley had most of its pharmacy staff walk out recently.. another very high volume pharmacy completely crippled and they bought the Kmart Pharmacy and its staff last year too, what in the heck happened)... I've lost patience. I sold my shares last year at a significant loss and hoped at the time it was the wrong decision. It is looking like it may have been the right decision. I am still tempted to buy back in but seeing what is going on I tend to think that is not a wise idea.
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Re: Rite Aid closing at least 63 stores

Post by buckguy »

The research triangle area in NC is a hub for big data tech---software firms like SAS, lots of people experienced with managing large datasets for academia, government, business, etc. Cheaper than traditional tech hubs like the Bay area or Boston and there's depth in areas they need. Marketing research is often managed away from corporate headquarters---for many years the biggest marketing research firm in the US was Burke in Cincinnati---their clients were/still are all over the country.
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Re: Rite Aid closing at least 63 stores

Post by norcalriteaidclerk »

About the time my store basically hit rock bottom when our now-previous store manager bailed(just barely over a month ago), things began pointing to the eventual demise of 900 Sunrise:a supervisor that had been helping out for relief purposes had been dreading a sudden emergency meeting announced with only a day or two advance notice.Then that Saturday when I was diverted to 6661 Auburn,that store's manager (who managed 5409 Sunrise at the time I shotgun transferred there upon the closure of 7900 Arcadia)was having a conversation with an off-duty supervisor who was shopping;and they began discussing the then-speculative rumblings about 900 Sunrise when the off-duty supervisor noted that particular store failed to receive a truckload that week.Within a few days it was verified that the store was clearancing out its non-prescription merchandise and half of its staffers started helping us out(including a couple that ended up at Roseville square). Early in their liquidation,their store manager (wasn't yet confirmed,but he did get reassigned to our store along with several others including most of their management team)did take a guided tour of my distressed store.Once they closed(and half their staff transferred here),the task of rescuing my store began in earnest.It hasn't yet quite gotten back to the level of 14 months ago (just before the store manager at that time was reassigned to South lake Tahoe),but at least the new management is trying.

Also, I have some personal background with 900 Sunrise in the form of a couple fill-in shifts in late 2015 and again in January 2016.Both were morning shifts,and back then it was relatively quiet that time of day even in comparison to 7900 Arcadia.One of our new transfers (a supervisor)was already at that store back then:he was hired under Thrifty Payless at 5712 Folsom days before the acquisition by RAD was announced and later ended up at 1730 Watt,over the years he's filled in at other stores including 7900 Arcadia.Three other new colleagues transferred from 900 sunrise were already employed by RAD at the time yet weren't yet at that location at the time of my fill-ins.The store manager I worked with was decent,too bad he was forced out not long after the 7900 Arcadia closure over 'excessive overtime' accumulations.As Roseville (and southern placer county in general)is still growing,it is questionable that just two go forward locations serve this high growth area(Roseville square and Foothills).

That said, I also desperately hope that the loss of 900 Sunrise is where the buck stops with the NorCal RAD closures (especially in and around Sacramento where many closures just didn't make sense to me);but given the dismal earnings call that dodged the question whether further closures were on the table(further SoCal closures were already being reported on Reddit), I do really have to wonder what corporate management's next course of action would be.The new management team we got from 900 Sunrise is already hard at work trying to get my store to at least the level it was fourteen months ago(just before the store manager we had then was reassigned to South lake Tahoe, I must acknowledge that our now previous manager who which lasted roughly a year upon replacing her wasn't one of the better ones that I've worked with at any location, negative opinions about him from other managers started to surface upon his departure)yet I still think that the future of 5409 Sunrise is at the whim of corporate management that is far from blameless in running my store and others (like half the Tahoe basin stores,it seems that the current SLT manager seems to be having it worse than when she was at my store IMHO) to the ground (half the merchandise phased out in recent years didn't need to be). Despite this I still think my best move is to stick it out and hope the worst thing to come out of this being reassigned to a go-forward location if I get subjected to another closure.Not to mention that an AP auditor noted a possible feud brewing between regional/corporate management and merlone Geier (http://merlonegeier.com)which is the property manager of my store's parent center, Sunrise Village.

An interesting point was made in respect to placerville Fair Lane:this larger store began life as a Payless NW owned value Giant in the 1970's only to rebrand after its parent acquired Payless Super Drug Stores of Oakland.The only capex it has received as RAD was a Rite choice repaint circa 2000.About the same time Safeway relocated to Missouri flat (their current store has a pharmacy which the old store lacked),and Big Lots (not immune to periodic location closures themselves)admittingly is less of a draw than a big supermarket.For years I myself wondered about the future of this store as the other placerville store has been remodeled thrice under RAD (Broadway now has Wellness 2.0 decor). However, Fair Lane did boost itself three years ago when it acquired the raleys RX records(just around the corner).Yet it remains questionable this store was kept instead of Cameron Park which clearly was better in more ways than one.Can't say much about their floor space usage,but fair lane is one of two preserved large payless units locally that still don't have a Thrifty counter(Roseville Foothills which acquired the Rx files from Bel Air next door being the other).

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Re: Rite Aid closing at least 63 stores

Post by reymann »

I was at the Rite Aid on Cedar/Shields in Fresno the other and it still had the old logo and hasn't been remodeled since relocating to it's current location in 2007. The store was poorly stocked and the refrigerator was broken. This store looks like it may be on death watch soon.
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Re: Rite Aid closing at least 63 stores

Post by norcalriteaidclerk »

reymann wrote:I was at the Rite Aid on Cedar/Shields in Fresno the other and it still had the old logo and hasn't been remodeled since relocating to it's current location in 2007. The store was poorly stocked and the refrigerator was broken. This store looks like it may be on death watch soon.
Didn't Fresno already lose 2 locations this past spring?I know that 6074 North 1st was a former Thrifty and the last local drive-thru less location in town,but what's their excuse for closing the customer world build at 2990 East nees?

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Re: Rite Aid closing at least 63 stores

Post by reymann »

I truly have no idea, Fresno is probably one of Rite Aid's weaker markets in California and I wouldn't be surprised if Fresno is first area of California Rite Aid fully retreats from. Thrifty Ice Cream is what really has kept Rite Aid alive around Fresno and maybe they reach a deal to sell Thrifty Ice Cream at Save Mart in the future if they do retreat.
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Re: Rite Aid closing at least 63 stores

Post by storewanderer »

reymann wrote: September 30th, 2022, 7:37 pm I truly have no idea, Fresno is probably one of Rite Aid's weaker markets in California and I wouldn't be surprised if Fresno is first area of California Rite Aid fully retreats from. Thrifty Ice Cream is what really has kept Rite Aid alive around Fresno and maybe they reach a deal to sell Thrifty Ice Cream at Save Mart in the future if they do retreat.
Once you are out of San Jose, the stretch of the bay area that is from, say, Mountain View all the way north through San Francisco to Rohnert Park, I would argue, is a much weaker patch. Rite Aid still has a decent presence scattered around Fresno and I think all are freestanding stores.

Cedar/Shields doesn't look like it is maintained very well even in the 2017 Google Maps photos specifically outside. So many Customer World Stores have closed and now at 15 years old, I wonder what the lease situation on this is. If they do leave the market the vacant buildings may make some good Aldi locations though they may be too small.
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Re: Rite Aid closing at least 63 stores

Post by storewanderer »

norcalriteaidclerk wrote: September 30th, 2022, 8:15 am
Also, I have some personal background with 900 Sunrise in the form of a couple fill-in shifts in late 2015 and again in January 2016.Both were morning shifts,and back then it was relatively quiet that time of day even in comparison to 7900 Arcadia.As Roseville (and southern placer county in general)is still growing,it is questionable that just two go forward locations serve this high growth area(Roseville square and Foothills).

That said, I also desperately hope that the loss of 900 Sunrise is where the buck stops with the NorCal RAD closures (especially in and around Sacramento where many closures just didn't make sense to me);but given the dismal earnings call that dodged the question whether further closures were on the table(further SoCal closures were already being reported on Reddit), I do really have to wonder what corporate management's next course of action would be.

An interesting point was made in respect to placerville Fair Lane:this larger store began life as a Payless NW owned value Giant in the 1970's only to rebrand after its parent acquired Payless Super Drug Stores of Oakland.The only capex it has received as RAD was a Rite choice repaint circa 2000.

I am surprised both 900 Sunrise and 7900 Arcadia are gone. That is a big area with no location after you subtract out long closed San Juan/Greenback and sold off Orangevale. For concentration purposes it just seems like one of those two should have been kept. I think 7900 Arcadia got a bad black eye after the robbery and someone decided it was just time for that store to be gone. They would have likely fared better remaining in the old building next to Food Maxx, I suspect the store would still be open today, as that center pulls decent traffic and Food Maxx drug mix is very limited.

Roseville is interesting. I suspect there is a high concentration of Kaiser users in Roseville especially the newer parts and that may impact some decisions on store growth. I am not sure when the last CVS or Walgreens opened in Roseville either.

Fair Lane is a pretty sad store (even more sad since the category eliminations) already with shelves blocking the side of the store off and many empty aisles. It reminds me of the old Florin Payless down in the Food Maxx center on Florin if you remember that, it was a dire store in a not great neighborhood. Fair Lane is that store, in a rural location, looks a little cleaner/brighter with the low budget 00's remodel and possibly even less foot traffic. The Broadway store is very busy.

I assume South Lake Tahoe must have a lease renewal given the lease was to end 10/31 and it is 10/01 and the store looks to be going forward and is still hiring multiple positions.
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Re: Rite Aid closing at least 63 stores

Post by Romr123 »

Looking through again; appears to be one closure in Sylvania, OH (leaving 19 stores in Toledo/Sylvania; appears to be a store remaining 1 mile away); one in Mansfield, OH (leaving 2), one in Westlake, OH (leaving 1; they appeared to be 1/2 mile apart); Middletown, OH (nearest store 14 miles away in Circleville; this was their frontier store from the Dayton market as this was on I-75 between Dayton/Cincinnati), one in Mentor, OH (nearest 6 miles away); one in Marysville (frontier store closest to Columbus, nearest 22 miles away), Also one of 3 in New Bedford, MA
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