WSJ: Rite Aid plans 400-500 store closures in pending bankruptcy filing

[SO_CAL_RETAIL_SLUT]

The entire west coast operation is legally "Thrifty Payless" from a licensing perspective. It is just that Payless name that they sold.

However a quick visit to the trademark database seems to reveal that the OR group who bought the Payless name has let those trademarks die. Someone tried to trademark "Thrifty Payless Drugs", an individual from Sherman Oaks, but that was in 2011 and that was allowed to die in 2012.

I have thought of another potential transaction that I think may be good. I am wondering if now that Save Mart did not get chosen for any Kroger/Albertsons store divests if that investment group may have an interest in a block of west coast Rite Aid units and perhaps one distribution center at a fire sale price. Despite exiting the pharmacy business at Save Mart (a move that I suspect helped them not get chosen for any Kroger/Albertsons store divests), I am curious if it may be different for them if they were able to buy actual drug stores. From what I can tell Bob Miller is still in an oversight position on Save Mart's board. I suspect Save Mart has some kind of a non-compete agreement with Walgreens so if the investment group who controls Save Mart would go this route they'd have to run these Rite Aids as a separate division from Save Mart, similar to how World Market is completely separate from Save Mart.

I don't see a benefit to a rebrand on the west coast. I don't feel like Rite Aid necessarily has a bad reputation among customers on the west coast. I think the wellness remodels went a long ways in improving customer perception of Rite Aid as a chain.

Makes a lot of sense. Does anyone have a good comparison of West Coast store count vs East Coast? Maybe that would explain the supposed threat of closing hundreds of additional stores when it seems like they're already exiting there on a 3 to 1 basis vs West Coast.

To me, the behavior of Rite Aid, stringing out what seems like a filing that should happen sooner than later, their pseudo PR effort etc. indicate they're trying to work a deal for someone to acquire a good chunk of the company as a going concern. They must be interested in trying to save the company instead of letting it be liquidated.

Save Mart would probably be a good acquirer of a slimmed down West Coast only chain (or chains if you assume they'd leave Bartell alone). I'm still wondering if Amazon goes and makes a play to acquire the entire Bartell segment as a low cost learning experiment into the drugstore and retail pharmacy business, since they seem to be having slightly more success growing their pharmacy front versus their grocery operations these days. Low risk, high potential reward. Somehow, despite their crappy track record I could see them doing well with Bartell. They would probably have minimal changes other than making customer service desk an Amazon return and pickup counter, add some lockers, and probably make Prime a loyalty program. Behind the scenes whatever deal making they're up to with insurance companies could apply to fixing the financial side of the pharmacy. They could merge the PBM into Amazon pharmacy as well. It's better than seeing it liquidated.

I don't see Amazon taking any RAD properties - especially where a current bargaining agreement is in place, Bartell's or otherwise.

It would make Amazon look foolish to acquire a chain with a current bargaining agreement when they have been very vehemently anti-union toward their own employees and work locations. At the one Amazon location that has unionized, does that location have an actual in place bargaining agreement?

If it were not for the RAD bargaining agreements in place, I could see Amazon picking up select west coast real estate - but the bargaining agreements go with the stores, unless of course the stores are completely shut down. The bargaining agreements are a noose around anyone's neck that wants to acquire the stores, a select few or whatever number a potential acquirer is looking to purchase.

The bargaining agreements and the required continued funding of the joint employer-UFCW Drug Trust Fund (employee healthcare and pension benefits) is a bitter pill for some potential buyers of west coast locations.

SO_CAL_RETAIL_SLUT

[ClownLoach]

The entire west coast operation is legally "Thrifty Payless" from a licensing perspective. It is just that Payless name that they sold.

However a quick visit to the trademark database seems to reveal that the OR group who bought the Payless name has let those trademarks die. Someone tried to trademark "Thrifty Payless Drugs", an individual from Sherman Oaks, but that was in 2011 and that was allowed to die in 2012.

I have thought of another potential transaction that I think may be good. I am wondering if now that Save Mart did not get chosen for any Kroger/Albertsons store divests if that investment group may have an interest in a block of west coast Rite Aid units and perhaps one distribution center at a fire sale price. Despite exiting the pharmacy business at Save Mart (a move that I suspect helped them not get chosen for any Kroger/Albertsons store divests), I am curious if it may be different for them if they were able to buy actual drug stores. From what I can tell Bob Miller is still in an oversight position on Save Mart's board. I suspect Save Mart has some kind of a non-compete agreement with Walgreens so if the investment group who controls Save Mart would go this route they'd have to run these Rite Aids as a separate division from Save Mart, similar to how World Market is completely separate from Save Mart.

I don't see a benefit to a rebrand on the west coast. I don't feel like Rite Aid necessarily has a bad reputation among customers on the west coast. I think the wellness remodels went a long ways in improving customer perception of Rite Aid as a chain.

Makes a lot of sense. Does anyone have a good comparison of West Coast store count vs East Coast? Maybe that would explain the supposed threat of closing hundreds of additional stores when it seems like they're already exiting there on a 3 to 1 basis vs West Coast.

To me, the behavior of Rite Aid, stringing out what seems like a filing that should happen sooner than later, their pseudo PR effort etc. indicate they're trying to work a deal for someone to acquire a good chunk of the company as a going concern. They must be interested in trying to save the company instead of letting it be liquidated.

Save Mart would probably be a good acquirer of a slimmed down West Coast only chain (or chains if you assume they'd leave Bartell alone). I'm still wondering if Amazon goes and makes a play to acquire the entire Bartell segment as a low cost learning experiment into the drugstore and retail pharmacy business, since they seem to be having slightly more success growing their pharmacy front versus their grocery operations these days. Low risk, high potential reward. Somehow, despite their crappy track record I could see them doing well with Bartell. They would probably have minimal changes other than making customer service desk an Amazon return and pickup counter, add some lockers, and probably make Prime a loyalty program. Behind the scenes whatever deal making they're up to with insurance companies could apply to fixing the financial side of the pharmacy. They could merge the PBM into Amazon pharmacy as well. It's better than seeing it liquidated.

I don't see Amazon taking any RAD properties - especially where a current bargaining agreement is in place, Bartell's or otherwise.

It would make Amazon look foolish to acquire a chain with a current bargaining agreement when they have been very vehemently anti-union toward their own work locations. At the Amazon locations that have unionized, do any of them have an actual in place bargaining agreement?

If were not for the bargaining agreements, I could see Amazon picking up select west coast real estate - but the bargaining agreements go with the stores, unless of course the stores are completely shut down. The bargaining agreements are a noose around anyone's neck that wants to acquire the stores, a select few or whatever number a potential acquirer is looking to purchase.

The bargaining agreements and the required continued funding of the joint employer-UFCW Drug Trust Fund (employee healthcare and pension benefits) is a bitter pill for some potential buyers of west coast locations.

SO_CAL_RETAIL_SLUT

All things considered, it's a pretty small operation union or not.

[babs]

The entire west coast operation is legally "Thrifty Payless" from a licensing perspective. It is just that Payless name that they sold.

However a quick visit to the trademark database seems to reveal that the OR group who bought the Payless name has let those trademarks die. Someone tried to trademark "Thrifty Payless Drugs", an individual from Sherman Oaks, but that was in 2011 and that was allowed to die in 2012.

I have thought of another potential transaction that I think may be good. I am wondering if now that Save Mart did not get chosen for any Kroger/Albertsons store divests if that investment group may have an interest in a block of west coast Rite Aid units and perhaps one distribution center at a fire sale price. Despite exiting the pharmacy business at Save Mart (a move that I suspect helped them not get chosen for any Kroger/Albertsons store divests), I am curious if it may be different for them if they were able to buy actual drug stores. From what I can tell Bob Miller is still in an oversight position on Save Mart's board. I suspect Save Mart has some kind of a non-compete agreement with Walgreens so if the investment group who controls Save Mart would go this route they'd have to run these Rite Aids as a separate division from Save Mart, similar to how World Market is completely separate from Save Mart.

I don't see a benefit to a rebrand on the west coast. I don't feel like Rite Aid necessarily has a bad reputation among customers on the west coast. I think the wellness remodels went a long ways in improving customer perception of Rite Aid as a chain.

Makes a lot of sense. Does anyone have a good comparison of West Coast store count vs East Coast? Maybe that would explain the supposed threat of closing hundreds of additional stores when it seems like they're already exiting there on a 3 to 1 basis vs West Coast.

To me, the behavior of Rite Aid, stringing out what seems like a filing that should happen sooner than later, their pseudo PR effort etc. indicate they're trying to work a deal for someone to acquire a good chunk of the company as a going concern. They must be interested in trying to save the company instead of letting it be liquidated.

Save Mart would probably be a good acquirer of a slimmed down West Coast only chain (or chains if you assume they'd leave Bartell alone). I'm still wondering if Amazon goes and makes a play to acquire the entire Bartell segment as a low cost learning experiment into the drugstore and retail pharmacy business, since they seem to be having slightly more success growing their pharmacy front versus their grocery operations these days. Low risk, high potential reward. Somehow, despite their crappy track record I could see them doing well with Bartell. They would probably have minimal changes other than making customer service desk an Amazon return and pickup counter, add some lockers, and probably make Prime a loyalty program. Behind the scenes whatever deal making they're up to with insurance companies could apply to fixing the financial side of the pharmacy. They could merge the PBM into Amazon pharmacy as well. It's better than seeing it liquidated.

I don't see Amazon taking any RAD properties - especially where a current bargaining agreement is in place, Bartell's or otherwise.

It would make Amazon look foolish to acquire a chain with a current bargaining agreement when they have been very vehemently anti-union toward their own work locations. At the Amazon locations that have unionized, do any of them have an actual in place bargaining agreement?

If were not for the bargaining agreements, I could see Amazon picking up select west coast real estate - but the bargaining agreements go with the stores, unless of course the stores are completely shut down. The bargaining agreements are a noose around anyone's neck that wants to acquire the stores, a select few or whatever number a potential acquirer is looking to purchase.

The bargaining agreements and the required continued funding of the joint employer-UFCW Drug Trust Fund (employee healthcare and pension benefits) is a bitter pill for some potential buyers of west coast locations.

SO_CAL_RETAIL_SLUT

Amazon isn't buying Bartell's, Rite Aid or any other retailer. They gain nothing but a headache and a future write-off buying junk.

Frankly, I see Rite Aid dying off rather anyone acquiring them besides private equity where those mastermind crooks find a way to monetize anything they buy.

[BillyGr]

I would not trust DG with a prescription for a pet roach.

Seems odd - IF they were to actually do this (not that they will), they would be buying existing stores with people who know about pharmacy. As that is not something they have now, it would only be sensible to leave those people in charge, while having those from the Dollar General side come in and re-do the rest of the stores to offer items that are more competitive than the drugstores generally are (outside of sale items) in that section.

So, it wouldn't be anyone currently with Dollar General running the pharmacy, but people who have actually done that before.

[storewanderer]

Christmas items are starting to appear. Store in question gets delivery mid week.

Ton of out of stocks all over the main aisles despite the recent delivery.

[storewanderer]

Dollar General had Richard Dreuling a former Longs executive running their company for a long time and had a crazy wild growth run under him. With experienced management it may have made sense for them to enter pharmacy. I'm not so sure now.

Now he is at Family Dollar/ Dollar Tree. Retirement didn't last long.

[norcalriteaidclerk]

Christmas items are starting to appear. Store in question gets delivery mid week.

Ton of out of stocks all over the main aisles despite the recent delivery.

20230928_150000.jpg

My store didn't receive Christmas in our most recent truckload(we currently receive them every Thursday).In fact in the two most recent truckloads we've only received a couple pallets per shipment which is half the size of what we've been generally receiving.

[storewanderer]

Christmas items are starting to appear. Store in question gets delivery mid week.

Ton of out of stocks all over the main aisles despite the recent delivery.

20230928_150000.jpg

My store didn't receive Christmas in our most recent truckload(we currently receive them every Thursday).In fact in the two most recent truckloads we've only received a couple pallets per shipment which is half the size of what we've been generally receiving.

This store definitely didn't get much on the truck that showed up but there was obvious restocking compared to how it looked last week. Also a lot more out of stocks in a number of spots. HBA looked particularly troubling in its level of out of stocks. Food looked fine and OTC looked better than I expected it to and similar to most other retailers. The amount of Christmas isn't much but at least it is a start.

Also notice they are doing strange things with the endcaps to try and make them look full. Due to lack of product from Rite Aid truck there are things like an endcap full of Coke or something on the endcap of the dental/pain relief aisle. This endcap historically has always been drugstore related items, previously had toothpaste and some other things, but that is all sold out including in its regular home. They also removed the 2 endcaps from the back aisles that had clearance items and one endcap was other random stuff and pushed the clearance items all onto unused back wall space (space that used to house small kitchen appliances but as of late had just had tubs or bins). Also liquor deliveries are occurring as usual as a previous aisle open space now has a new pallet of Corona in it.

[veteran+]

I would not trust DG with a prescription for a pet roach.

Seems odd - IF they were to actually do this (not that they will), they would be buying existing stores with people who know about pharmacy. As that is not something they have now, it would only be sensible to leave those people in charge, while having those from the Dollar General side come in and re-do the rest of the stores to offer items that are more competitive than the drugstores generally are (outside of sale items) in that section.

So, it wouldn't be anyone currently with Dollar General running the pharmacy, but people who have actually done that before.

They are not going to fund that. They will do what they do with cost cuts, reducing payroll, short cuts, department specific violations, et al.

Entrusting and org like this with life saving medications is a recipe for disaster. I do not think the Pharmacy Professionals will last long there.

[norcalriteaidclerk]

Christmas items are starting to appear. Store in question gets delivery mid week.

Ton of out of stocks all over the main aisles despite the recent delivery.

20230928_150000.jpg

My store didn't receive Christmas in our most recent truckload(we currently receive them every Thursday).In fact in the two most recent truckloads we've only received a couple pallets per shipment which is half the size of what we've been generally receiving.

This store definitely didn't get much on the truck that showed up but there was obvious restocking compared to how it looked last week. Also a lot more out of stocks in a number of spots. HBA looked particularly troubling in its level of out of stocks. Food looked fine and OTC looked better than I expected it to and similar to most other retailers. The amount of Christmas isn't much but at least it is a start.

Also notice they are doing strange things with the endcaps to try and make them look full. Due to lack of product from Rite Aid truck there are things like an endcap full of Coke or something on the endcap of the dental/pain relief aisle. This endcap historically has always been drugstore related items, previously had toothpaste and some other things, but that is all sold out including in its regular home. They also removed the 2 endcaps from the back aisles that had clearance items and one endcap was other random stuff and pushed the clearance items all onto unused back wall space (space that used to house small kitchen appliances but as of late had just had tubs or bins). Also liquor deliveries are occurring as usual as a previous aisle open space now has a new pallet of Corona in it.

Considering the fact that my store has received scant truckload in recent weeks(just two pallets a piece in each of the past two DC shipments,only Christmas we've received so far is some random gift sets mostly liquor), I'm desperately hoping those Christmas items pictured are stored-away(in the store backroom)older stock from prior years(camp Hill address)rather than newly delivered stock(address in etters PA which has long been the de facto corporate operations support center regardless of wheth official HQ has been in camp Hill or now the Philly Navy Yard). I'm now beginning to see shelves get barer first hand,and while most haven't mentioned the wsj leak, customers are clearly getting panicked about my store's decreasing stock levels(not to mention the two closest peripheral locations do higher volume).