Rite Aid closing at least 63 stores

[ClownLoach]

One surprise: apparently the long mothballed Murrieta/Winchester store has opened. I saw a few pictures on LinkedIn from a connection and it appears to be some version of the new prototype but not what the investor presentation looked like. Pictures appeared very plain; lighting is ordinary recessed fluorescent type fixtures instead of the fancy can lights and such they were using in the Wellness stores. I suspect they just threw this together to get it open as cheaply as possible. I'll go check it out and see how it is.

Only the "better" Wellness remodels got those can lights. Most Wellness Stores didn't get new lights. It makes sense most of the stores around SoCal you see got the better lights since those are the better stores.

Rite Aid Rio Linda, CA was one of the latest new builds I know of in NorCal, built as a Wellness Store, and it does not have the can lights either. It has more department store style lights. Rite Aid Susanville opened around 2016 (relocation) and it also does not have the can lights but the more department store style lights. Rite Aid Quincy, CA was a very late Wellness remodel (last one I know of that was done in NorCal- right around the time of the Walgreens merger falling apart) and it kept the recessed lighting (this store is a real dive but still better than it looked as a Thrifty).

I would expect the new store interior to look good. If it doesn't, that will be a real departure.... because Rite Aid always has put out a nice looking new store even if the layouts were weird.

Saw a video walk through. Not good. From a construction perspective it is scaled back from what Rite Aid was doing before. Ordinary flat ceiling tiles and cheap rectangular light fixtures with flat lens. It does have the nicer recessed lighting in pharmacy. Flooring is all cheap vinyl sheets which will not wear well, laminate hardwood by pharmacy. Wall signage is very plain looking. Pharmacy resembles the prototype presentations.

[storewanderer]

Saw a video walk through. Not good. From a construction perspective it is scaled back from what Rite Aid was doing before. Ordinary flat ceiling tiles and cheap rectangular light fixtures with flat lens. It does have the nicer recessed lighting in pharmacy. Flooring is all cheap vinyl sheets which will not wear well, laminate hardwood by pharmacy. Wall signage is very plain looking. Pharmacy resembles the prototype presentations.

I am hoping to see pictures of this store soon. This does not sound good. Sounds like how a new Walgreens looked back in the 2000's, or how a new Dollar Tree looks today. Rite Aid always had a nicer decor. I know the RA1 decor was perceived by some as cheap but it was actually quite a nice decor package- it had a colorful floor, colorful shelving, shelf valances along the walls that were colorful, combination of wall finishes, that odd metal structure over the expansive beverage/freezer cooling... it didn't age too badly either, the real problem with those was the layout.

[norcalriteaidclerk]

► Show Spoiler

Maybe this sounds like a conspiracy theory,but I do wonder if 'the former gal' attempted to force out Matt Schroeder at any point prior to her own unexplained departure.Not to mention that my store recently received six 24.5"x22.375"x22.375" square boxes that were obviously empty(all with a Pennsylvania return address)but with notices stating 'hold for field technician' which makes no sense considering that all six oversized boxes were basically empty based on the relatively light weight and the fact there was no rattling noise when I shook one for testing purposes.

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[ClownLoach]

Saw a video walk through. Not good. From a construction perspective it is scaled back from what Rite Aid was doing before. Ordinary flat ceiling tiles and cheap rectangular light fixtures with flat lens. It does have the nicer recessed lighting in pharmacy. Flooring is all cheap vinyl sheets which will not wear well, laminate hardwood by pharmacy. Wall signage is very plain looking. Pharmacy resembles the prototype presentations.

I am hoping to see pictures of this store soon. This does not sound good. Sounds like how a new Walgreens looked back in the 2000's, or how a new Dollar Tree looks today. Rite Aid always had a nicer decor. I know the RA1 decor was perceived by some as cheap but it was actually quite a nice decor package- it had a colorful floor, colorful shelving, shelf valances along the walls that were colorful, combination of wall finishes, that odd metal structure over the expansive beverage/freezer cooling... it didn't age too badly either, the real problem with those was the layout.

Walked through but didn't get pictures because the Manager is walking around up and down the center of the store. Same size as the last new store that I am aware of in SoCal (Irvine Los Olivos). But that is a palace compared to this. It isn't bad, but it has almost nothing in it. It has half the beauty SKUs, the normal size "drugstore product" and the food is equivalent to a Circle K. The front end is nice, a combined checkout and ice cream counter with seating being it. Lighting is cheap. Floor is all cheap no wax vinyl stick down. It doesn't look bad, but it isn't as nice as the "fancy" wellness stores. The SKU count is way, way too low overall yet they still have things that they just shouldn't have in such a small store like a seed germination greenhouse. It probably has a quarter of the SKU count of an average size CVS. It's obvious right away why they haven't remodeled stores into this - it reduces assortment too drastically and it is cheaper quality construction.

[norcalriteaidclerk]

Saw a video walk through. Not good. From a construction perspective it is scaled back from what Rite Aid was doing before. Ordinary flat ceiling tiles and cheap rectangular light fixtures with flat lens. It does have the nicer recessed lighting in pharmacy. Flooring is all cheap vinyl sheets which will not wear well, laminate hardwood by pharmacy. Wall signage is very plain looking. Pharmacy resembles the prototype presentations.

I am hoping to see pictures of this store soon. This does not sound good. Sounds like how a new Walgreens looked back in the 2000's, or how a new Dollar Tree looks today. Rite Aid always had a nicer decor. I know the RA1 decor was perceived by some as cheap but it was actually quite a nice decor package- it had a colorful floor, colorful shelving, shelf valances along the walls that were colorful, combination of wall finishes, that odd metal structure over the expansive beverage/freezer cooling... it didn't age too badly either, the real problem with those was the layout.

Walked through but didn't get pictures because the Manager is walking around up and down the center of the store. Same size as the last new store that I am aware of in SoCal (Irvine Los Olivos). But that is a palace compared to this. It isn't bad, but it has almost nothing in it. It has half the beauty SKUs, the normal size "drugstore product" and the food is equivalent to a Circle K. The front end is nice, a combined checkout and ice cream counter with seating being it. Lighting is cheap. Floor is all cheap no wax vinyl stick down. It doesn't look bad, but it isn't as nice as the "fancy" wellness stores. The SKU count is way, way too low overall yet they still have things that they just shouldn't have in such a small store like a seed germination greenhouse. It probably has a quarter of the SKU count of an average size CVS. It's obvious right away why they haven't remodeled stores into this - it reduces assortment too drastically and it is cheaper quality construction.

This isn't quite the first California RAD location with the concept interior:the Camarillo location (a later former payless)moved into a smaller space within the same center (http://www.camarillovillagesquare.com) about a couple years ago though pictures of this replacement store(occupying part of a former Albertsons,the greater part now a sprouts)are lacking outside of a couple pictures of the Thrifty counter which is similar setup to this new French Valley store which may have been planned as a wellness store initially (under John standley)which explains the odd hybrid interior.

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[pseudo3d]

Saw that Rite Aid may be up for sale after their CEO departure. It seems like it may be a great acquisition choice for Kroger.

They get it for cheaper for what Albertsons would've paid, they get new parts of the country they weren't in previously (including NorCal), they can use the stores for cross-brand synergy, they're already interested due to their flirting with Walgreens, they can save money by consolidating their pharmacies.

[storewanderer]

► Show Spoiler

Maybe this sounds like a conspiracy theory,but I do wonder if 'the former gal' attempted to force out Matt Schroeder at any point prior to her own unexplained departure.Not to mention that my store recently received six 24.5"x22.375"x22.375" square boxes that were obviously empty(all with a Pennsylvania return address)but with notices stating 'hold for field technician' which makes no sense considering that all six oversized boxes were basically empty based on the relatively light weight and the fact there was no rattling noise when I shook one for testing purposes.

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How many cash registers are in the store? Maybe they are replacing the registers.

I don't think it is possible to force out Matt Schroeder, he is who is keeping things going financially. Unless there are a few real strong people under him... but not sure what that would accomplish; the finance department is not the problem at Rite Aid. Though it is controlling the $... and keeping the company out of bankruptcy...

[storewanderer]

Walked through but didn't get pictures because the Manager is walking around up and down the center of the store. Same size as the last new store that I am aware of in SoCal (Irvine Los Olivos). But that is a palace compared to this. It isn't bad, but it has almost nothing in it. It has half the beauty SKUs, the normal size "drugstore product" and the food is equivalent to a Circle K. The front end is nice, a combined checkout and ice cream counter with seating being it. Lighting is cheap. Floor is all cheap no wax vinyl stick down. It doesn't look bad, but it isn't as nice as the "fancy" wellness stores. The SKU count is way, way too low overall yet they still have things that they just shouldn't have in such a small store like a seed germination greenhouse. It probably has a quarter of the SKU count of an average size CVS. It's obvious right away why they haven't remodeled stores into this - it reduces assortment too drastically and it is cheaper quality construction.

I heard the new concept reduces SKU count drastically (from the already reduced SKU count they already hacked away in 2020). So this new store- how do they fill up the space? I am guessing the size of the store is enough for at least their current usual SKU count?

Ironically a big part of the reason why this new concept may not have given them the sales lift they hoped for in order to pay for what it cost was because they.... drastically reduced SKU count. It should be fairly obvious if you have less to offer, people will buy less... but this is what happens when you put executives in who do not have enough retail experience. Bed Bath and Beyond seems to have learned that the hard way too, but it is worse since that executive had retail experience.

Does it have self checkout?

What is the seed greenhouse? What is that providing/selling?

Tough to imagine they having fewer SKUs than new CVS Stores or the CVS "Health Hub" Stores have have. The replacement/new build 9k square foot CVS in Reno 1250 W 7th St, Reno, NV 89503 (new store is the one with a drop ceiling) has photos on Google Maps and it has 8 tiny little beauty/drug aisles and about 4 shorter aisles for food/liquor/seasonal/electronics total. But that is a 9k square foot store. I am guessing this new Rite Aid is at least 15k square feet so logically you'd expect it to have... a lot more SKUs than a 9k square foot store... I actually like the tiny CVS but most times when I go in, it does not have what I am trying to buy so I have to go to a larger CVS.

Personally, for consistency purposes, I think they would have been better off just opening this new store up as a Wellness Store.

[norcalriteaidclerk]

► Show Spoiler

Maybe this sounds like a conspiracy theory,but I do wonder if 'the former gal' attempted to force out Matt Schroeder at any point prior to her own unexplained departure.Not to mention that my store recently received six 24.5"x22.375"x22.375" square boxes that were obviously empty(all with a Pennsylvania return address)but with notices stating 'hold for field technician' which makes no sense considering that all six oversized boxes were basically empty based on the relatively light weight and the fact there was no rattling noise when I shook one for testing purposes.

Sent from my SM-G781U using Tapatalk

How many cash registers are in the store? Maybe they are replacing the registers.

I don't think it is possible to force out Matt Schroeder, he is who is keeping things going financially. Unless there are a few real strong people under him... but not sure what that would accomplish; the finance department is not the problem at Rite Aid. Though it is controlling the $... and keeping the company out of bankruptcy...

There are five total registers at my store(one each in pharmacy and the hand dip counter,and three standard checkout lanes)which is one fewer than the total number of empty boxes.I have posted a question in the unofficial RAD employee reddit (due to the main RAD and investor reddits being semi-closed) concerning this quandary.I wonder if any of the Tahoe basin stores have received new registers in recent months.

What had me wondering about whether Matt Schroeder being targeted by the now-former CEO was the questionable decision making on the part of 'the former gal' (merchandise getting axed from West Coast stores, focusing capex on changing signage rather than store remodels)that clearly clashed with a trusted holdover from the Bob Miller regime that has saved the company from prior financial crises.Additionally, some investors have actually called for the ousting of the board chairman as well in some social media posts.

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[ClownLoach]

Walked through but didn't get pictures because the Manager is walking around up and down the center of the store. Same size as the last new store that I am aware of in SoCal (Irvine Los Olivos). But that is a palace compared to this. It isn't bad, but it has almost nothing in it. It has half the beauty SKUs, the normal size "drugstore product" and the food is equivalent to a Circle K. The front end is nice, a combined checkout and ice cream counter with seating being it. Lighting is cheap. Floor is all cheap no wax vinyl stick down. It doesn't look bad, but it isn't as nice as the "fancy" wellness stores. The SKU count is way, way too low overall yet they still have things that they just shouldn't have in such a small store like a seed germination greenhouse. It probably has a quarter of the SKU count of an average size CVS. It's obvious right away why they haven't remodeled stores into this - it reduces assortment too drastically and it is cheaper quality construction.

I heard the new concept reduces SKU count drastically (from the already reduced SKU count they already hacked away in 2020). So this new store- how do they fill up the space? I am guessing the size of the store is enough for at least their current usual SKU count?

Ironically a big part of the reason why this new concept may not have given them the sales lift they hoped for in order to pay for what it cost was because they.... drastically reduced SKU count. It should be fairly obvious if you have less to offer, people will buy less... but this is what happens when you put executives in who do not have enough retail experience. Bed Bath and Beyond seems to have learned that the hard way too, but it is worse since that executive had retail experience.

Does it have self checkout?

What is the seed greenhouse? What is that providing/selling?

Tough to imagine they having fewer SKUs than new CVS Stores or the CVS "Health Hub" Stores have have. The replacement/new build 9k square foot CVS in Reno 1250 W 7th St, Reno, NV 89503 (new store is the one with a drop ceiling) has photos on Google Maps and it has 8 tiny little beauty/drug aisles and about 4 shorter aisles for food/liquor/seasonal/electronics total. But that is a 9k square foot store. I am guessing this new Rite Aid is at least 15k square feet so logically you'd expect it to have... a lot more SKUs than a 9k square foot store... I actually like the tiny CVS but most times when I go in, it does not have what I am trying to buy so I have to go to a larger CVS.

Personally, for consistency purposes, I think they would have been better off just opening this new store up as a Wellness Store.

The reason I called out the gardening aisle is that it is a completely frivolous exercise in selling seasonal merchandise. The store has probably about 20 linear feet total of seasonal space and they're selling seed starting greenhouse kits which really require advanced gardening skills. The buyer for these isn't going to Rite Aid for one. The store just doesn't have enough product. I believe it had two regular checkouts, one of which gets used for the Thrifty ice cream counter, and two self checkouts. The self checkouts are around the corner and close to the door; I don't think I saw anyone use it probably because you can't see them from the checkout queue line which is problematic.