Rite Aid closing at least 63 stores

storewanderer
Posts: 14387
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Rite Aid closing at least 63 stores

Post by storewanderer »

bryceleinan wrote: June 5th, 2023, 7:14 am

Biggest problem cited by Bi-Mart and others is the corporate activity tax, which taxes businesses on revenue, not profit:

https://www.oregon.gov/dor/programs/bus ... y-tax.aspx

The problem is that pharmacies did not get exempted from the tax, so not only are they losing money on DIR fees, they’re also losing $$$ in taxes. I’m not entirely surprised RA is closing more of their Oregon locations.
Very bad for insurance scripts that lose money.

OR has been a sleepy state for Rite Aid. There have been relatively few closures over the years (until now), few new stores, really not much has gone on.

I was in the Truckee Rite Aid and the pharmacy is still only open 9-6 M-F but the sales floor is looking better. I saw 5 employees stocking and the store has higher quantities of most items on the shelves than Gardnerville has. Also they've given the empty aisles to summer goods vendor so there are no empty aisles but many aisles filled with vendor summer items. I even had to wait 4 minutes to check out due to a long-ish line and one cashier who was running two registers at once.
bm11k
Front-End Bagger
Front-End Bagger
Posts: 20
Joined: July 20th, 2018, 1:08 am
Location: Fargo, ND
Has thanked: 3 times
Status: Offline

Re: Rite Aid closing at least 63 stores

Post by bm11k »

User avatar
norcalriteaidclerk
Assistant Store Manager
Assistant Store Manager
Posts: 542
Joined: August 22nd, 2010, 1:01 am
Location: 916/279 area code complex
Has thanked: 63 times
Been thanked: 42 times
Contact:
Status: Offline

Re: Rite Aid closing at least 63 stores

Post by norcalriteaidclerk »

bm11k wrote: June 9th, 2023, 6:40 pm Another Bartells to close
https://www.seattletimes.com/business/r ... ext-month/
This link was actually posted days ago.Ballard still has one Bartell Drugs location left in Ballard Commons which is one of just 64 total remaining including the conversion of the James Center RAD to offset the lease loss at University Place.

As far the namesake store count,2215 RAD locations remain.California is now down to 475 locations after the loss of the lone outpost in the Orange County community of Rancho Santa Margarita(1990's former PayLess Drug with disused garden center sharing the Mercado del Lago center with a pharmacy-less Ralphs,can't speak for whatever PayLess interior it had but it was remodeled into first RA-1 then first-gen Wellness decor)which based on decent community affluency realistically isn't attributable to shrink/theft.An unknown Pennsylvania location also closed as well leaving 479 locations in its home state,as well as another below-the-radar Michigan location(245 remain there).

On a side note,former CEO John Standley has been named to that same position with a multi-state car wash operator.I really have to wonder how much better off my company would have been if he hadn't been allowed to pick his RAD CEO successor(his departure was announced months before the unfortunate appointment of Heyward Donigan as his successor).In any case I'm not setting positive expectations for the FY2024Q1 earnings call(exact date TBD but expected before the Independence Day holiday)considering how badly the company jumped the shark in recent years(especially under the stewardship of 'the former gal').At least if my store starts receiving back-to-school/early harvest seasonal within the coming weeks,it'll be a vote of confidence more or less.The problem is that it's in a state of severe physical disrepair and has been for years(service calls for certain maintenance can be like pulling teeth despite the heroic efforts of new management inherited from 900 Sunrise):the 1975-era facade remains intact while the rest of Sunrise Village has been fully remodeled(customers that ask 'is your store closing' are breaking my heart five years after 7900 Arcadia),the roof has leaked for years,and now we've having a hard time keeping the Thrifty hand-dip counter operational because replacement parts for the aging and now malfunction-prone refrigeration equipment are hard to come by;and don't even get me started on how shrink has spiraled out of control the past couple years(both ORC boosters and the growing homeless problem in Citrus Heights).

I must note that San Rafael Northgate has quietly resumed conventional hours after a period of closing store and pharmacy at 6pm daily.Additionally,the lone outpost in the Central Valley community was targeted in attempted break-in via vehicular crash.
For your life,Thrifty and Payless have got it.
storewanderer
Posts: 14387
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Rite Aid closing at least 63 stores

Post by storewanderer »

I hate to say it but Rite Aid may be wise to get Standley back if they can get him back...

Or maybe some activist investors somehow gain control and place Standley back in charge...

I am surprised Standley left Walgreens. Walgreens sure churns executives since it got involved with Boots. Before Boots it was very stable.

Some lock shelves now in place at Truckee Rite Aid in laundry detergent and some other random places, similar to South Lake Tahoe. Given how understaffed these stores are this is not a good idea at all. Would be better to move all items that they think need to be locked behind the front checkout counter and let customers request the items there. Not seeing this at other rural stores.
BillyGr
Store Manager
Store Manager
Posts: 1579
Joined: October 5th, 2010, 7:33 pm
Been thanked: 58 times
Status: Offline

Re: Rite Aid closing at least 63 stores

Post by BillyGr »

storewanderer wrote: June 10th, 2023, 12:55 am Some lock shelves now in place at Truckee Rite Aid in laundry detergent and some other random places, similar to South Lake Tahoe. Given how understaffed these stores are this is not a good idea at all. Would be better to move all items that they think need to be locked behind the front checkout counter and let customers request the items there. Not seeing this at other rural stores.
That makes sense, as long as they leave space where they should be with information (as some stores have done) - otherwise people won't ask for it, if they don't see that type(s) out, they may think the store simply doesn't carry it (or if it's a sale, that they are just out of stock).
mburb1981
Produce Clerk
Produce Clerk
Posts: 50
Joined: April 10th, 2021, 11:24 am
Has thanked: 2 times
Been thanked: 10 times
Status: Offline

Re: Rite Aid closing at least 63 stores

Post by mburb1981 »

norcalriteaidclerk wrote: June 9th, 2023, 8:02 pm ...as well as another below-the-radar Michigan location(245 remain there).
That location would most likely be 25100 Harper Avenue in Saint Clair Shores, a former Perry Drug that (as seems to be a common theme in Michigan Rite Aid closures) kept RA1 despite receiving a full exterior repaint with the new logo. This leaves the entire city of SCS with only one remaining Rite Aid, which is a location in a Kroger-anchored strip mall a mile from the newly-closed Rite Aid.
User avatar
norcalriteaidclerk
Assistant Store Manager
Assistant Store Manager
Posts: 542
Joined: August 22nd, 2010, 1:01 am
Location: 916/279 area code complex
Has thanked: 63 times
Been thanked: 42 times
Contact:
Status: Offline

Re: Rite Aid closing at least 63 stores

Post by norcalriteaidclerk »

https://www.marketwatch.com/story/rite- ... t-bab9961f

I really begin to wonder if 'analyst' George Hill has bias against the viability of RAD.Maybe a miracle in tomorrow's earnings call can flip the narrative.
For your life,Thrifty and Payless have got it.
storewanderer
Posts: 14387
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Rite Aid closing at least 63 stores

Post by storewanderer »

norcalriteaidclerk wrote: June 28th, 2023, 10:44 am https://www.marketwatch.com/story/rite- ... t-bab9961f

I really begin to wonder if 'analyst' George Hill has bias against the viability of RAD.Maybe a miracle in tomorrow's earnings call can flip the narrative.
Given the expense cuts the stores have I am not expecting a miracle tomorrow.

However the debt maturities are not until 2025 and 2026. I know we are hearing Interest Rates will rise more during 2023 but at some point before 2025, I expect the economy is going to have a major event/crash that will necessitate a quick, rapid drop in Interest rates. That will not be good but could work in favor of Rite Aid being able to refinance its debt again at terms it can, for lack of better words, continue to survive in its current form with. Rite Aid has been up against this kind of situation before multiple times and somehow things have always worked out. I don't know if this is the 9th round but we may be getting close to the 9th round.

If the current Interest rate cycle continues to 2025-2026 I do not see how Rite Aid will be able to continue in its current publicly traded form. Albertsons has a very similar issue with its debt but they could still survive the higher rates but it wouldn't be pretty. Maybe Rite Aid can be taken private and debt eliminated by someone who thinks they can save it.
User avatar
norcalriteaidclerk
Assistant Store Manager
Assistant Store Manager
Posts: 542
Joined: August 22nd, 2010, 1:01 am
Location: 916/279 area code complex
Has thanked: 63 times
Been thanked: 42 times
Contact:
Status: Offline

Re: Rite Aid closing at least 63 stores

Post by norcalriteaidclerk »

FY2024Q1 was a partial beat on revenue yet it doesn't feel like anything to get excited about given the recent rumblings of a bondholder mutiny.Of course the underappreciated CFO(he sadly continues to take his lumps on the RAD investors subreddit which is a cesspool in comparison to the general RAD subreddit)would have a question dumped on him about the potential of further store closures(he decline to give a figure).Some of the new entries in the current surplus property listing have dark leases running into the 2030's.

I must also note that select locations(my store as well as 1730 Watt,north Davis,and Galt)will have closed pharmacies on the Fourth.Most of the affected locations(about 480 chainwide)are within reasonable distance from another location though the selection of Galt(Elk Grove and Lodi are the nearest locations to have an open pharmacy)and Davis Russell(store open until 11 pm daily while Cowell has just typical store hours)are somewhat curious.
For your life,Thrifty and Payless have got it.
storewanderer
Posts: 14387
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Rite Aid closing at least 63 stores

Post by storewanderer »

Not an earth shattering report in any direction, if they keep having reports like this they can lumber along pending what happens with Interest rates once the debt maturities get closer.

I'm glad it wasn't a surprise disaster.

Future guidance wasn't good, but at least they don't try to over promise.
Post Reply