Rite Aid closing at least 63 stores

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Re: Rite Aid closing at least 63 stores

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norcalriteaidclerk wrote: March 14th, 2023, 1:37 pm Just when we were lulled into a false sense of security in the wake of the Heyward Donigan departure,the caretaker regime of Elizabeth 'Busy' Burr has just been served up a government lawsuit in connection with opioid violations dating back to the John Standley era.Oh,did I forget to mention that shares of RAD stock took a 19% beating today to finish at $2.66 just three cents above the all-time low(factoring in the 2019 reverse-stock split)set earlier in today's trading session?[Further proof that this company sorely needs a positive FY2023Q4 result which won't be known for roughly another month.Everyone wants to see this listing shrink and not get bloated.
I think ClownLoach mentioned this type of a lawsuit was probably upcoming based on what had happened to some other chains.

But I do not recall the opioid lawsuits involving other chains to have some of these details in the release about False Claims Act. Maybe I missed that detail when other chains got hit with this lawsuit.

I'm not sure what to make of this lawsuit.

Lots of properties falling off the surplus list in 2023-2024.
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Re: Rite Aid closing at least 63 stores

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This chain seems to be messing with store hours again. South Lake Tahoe Store is now closing at 6 PM on Saturday. Handwritten sign on the hours sticker showing this.

Poor inventory, filthy dirty store, leaking ceiling, really awful. They took out a bunch of endcaps and made zero effort to clean the floor under where the endcaps were (really disgusting). This store was getting a little better but it has nosedived again. At least one of the three self checkouts works.

Also still has Halloween merchandise for sale 75% off and Christmas merchandise for sale 60% off. Pretty sure that stuff was supposed to be pulled long ago. I guess nobody cares in this store.
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Re: Rite Aid closing at least 63 stores

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storewanderer wrote: March 19th, 2023, 1:20 am Also still has Halloween merchandise for sale 75% off and Christmas merchandise for sale 60% off. Pretty sure that stuff was supposed to be pulled long ago. I guess nobody cares in this store.
Not surprising, as ours had Easter items (just plastic eggs and that fake grass as I remember) for 75% off in their clearance area all winter. Not sure if they actually got rid of them or just moved them back to the seasonal section since that is back in season these days ;)
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Re: Rite Aid closing at least 63 stores

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BillyGr wrote: March 19th, 2023, 11:06 am
storewanderer wrote: March 19th, 2023, 1:20 am Also still has Halloween merchandise for sale 75% off and Christmas merchandise for sale 60% off. Pretty sure that stuff was supposed to be pulled long ago. I guess nobody cares in this store.
Not surprising, as ours had Easter items (just plastic eggs and that fake grass as I remember) for 75% off in their clearance area all winter. Not sure if they actually got rid of them or just moved them back to the seasonal section since that is back in season these days ;)
I'm having a hard time with Rite Aid. I really want to see the chain succeed. But my visits to their stores are so bad from a merchandise perspective and in some cases operationally they are in such bad shape (this really varies by location) that I am basically out of hope at this point.
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Re: Rite Aid closing at least 63 stores

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Aside from the rough week shares of stock had in the wake of the federal opioid lawsuit,a key donigan appointee has departed,and while not noted in that article(but in an internal memo rather)additional lower level department heads have also departed(including one whose position was abolished).
https://chainstoreage.com/rite-aid-chie ... ud-departs
https://www.law.com/corpcounsel/2023/03 ... nashville/
For your life,Thrifty and Payless have got it.
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Re: Rite Aid closing at least 63 stores

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Didn't they also eliminate another store operations position some months ago (maybe it was back in 2021)?

I mean based on how the stores have gotten the past couple years I am not sure what anyone in store operations is actually doing anyway. They sure don't seem to be trying to enhance the store mix or store inventory levels in a manner that will increase sales volume. There have been some initiatives that seemed well intended like the price cut program back in earlier 2022 but the timing was the worst luck as the inflation took off so that derailed that.
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Re: Rite Aid closing at least 63 stores

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storewanderer wrote: March 21st, 2023, 12:27 am Didn't they also eliminate another store operations position some months ago (maybe it was back in 2021)?

I mean based on how the stores have gotten the past couple years I am not sure what anyone in store operations is actually doing anyway. They sure don't seem to be trying to enhance the store mix or store inventory levels in a manner that will increase sales volume. There have been some initiatives that seemed well intended like the price cut program back in earlier 2022 but the timing was the worst luck as the inflation took off so that derailed that.
The elimination of the COO position occurred roughly at this time a year ago when mass closures were occurring.Last week's HQ shakeup as well as the stock price getting slaughtered at the same time may have just smashed our false sense of security.Still no date for the year-end(FY2023)earnings call.Our truckload shipments have been getting somewhat erratic in size and in any given aisle some items have been out of stock for weeks if not months.
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Re: Rite Aid closing at least 63 stores

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I am noticing the same thing with in-stock condition, some stuff has been missing for a long time. Given that they cut so many SKUs out I think it is pretty important they keep the SKUs still offered in stock constantly.

I know some categories like OTC Cough/Cold are bad at every retailer but the missing items at Rite Aid for weeks/months span the entire store, not just that category.

The lack of closures seems to be a positive in the immediate term but I am guessing they are re-evaluating at this point the overall situation. I do think some closures were a mistake. If leases still have six years it will be interesting if they consider reopening some closed stores. Probably signed a non compete when selling the prescription files so can't do that in many cases.
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Re: Rite Aid closing at least 63 stores

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Apparently our shelved-off aisles could be soon be reopened in the wake of a fire marshal complaint which may or may not make any difference given the lack of a real corporate merchandising plan and the fact that the store is the only Sunrise Village merchant to retain its original facade.While the last known closure chainwide occurred roughly a month ago,trouble is clearly brewing as the stock hit a new low today($2.39)amid the HQ housecleaning and the opioid lawsuit impacts.Again,no date for the complete FY2023 fiscal report so far.The way things are going,CFO Matt Schroeder(perhaps the only adult in the room left in HQ)may be facing his biggest challenge since being brought aboard under Bob Miller.
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Re: Rite Aid closing at least 63 stores

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norcalriteaidclerk wrote: March 22nd, 2023, 11:29 pm Apparently our shelved-off aisles could be soon be reopened in the wake of a fire marshal complaint which may or may not make any difference given the lack of a real corporate merchandising plan and the fact that the store is the only Sunrise Village merchant to retain its original facade.While the last known closure chainwide occurred roughly a month ago,trouble is clearly brewing as the stock hit a new low today($2.39)amid the HQ housecleaning and the opioid lawsuit impacts.Again,no date for the complete FY2023 fiscal report so far.The way things are going,CFO Matt Schroeder(perhaps the only adult in the room left in HQ)may be facing his biggest challenge since being brought aboard under Bob Miller.
No other stores I've seen have shelved off aisles, other stores just let you walk down the vacant aisles. Even some stores with a ton of empty aisles like Placerville Fair Lane the aisles you can walk down all of them.

It seemed like there was an effort to fill empty aisles late last year with seasonal stuff or vendor clothing but those efforts seem to have stalled and I am seeing a lot more empty space again.
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