CAMP HILL, PA-Even as it integrates more than 1,800 Brooks Eckerd units, Rite Aid Corp. remains on track with its store expansion plans, executives said during the company's second-quarter conference call.

The company completed the acquisition of 1,854 Brooks Eckerd units on June 4, and the integration is proceeding smoothly, said Mary Sammons, chairman, president and CEO. “About 50% of Brooks Eckerd stores now have Rite Aid signage,” Sammons said. “The rest will be done by Thanksgiving. We are on track to complete the integration in a 16-month time period.”

The company also remains on track to open 125 new and relocated stores this year. In addition to acquiring the Brooks Eckerd units, Rite Aid opened 11 stores, relocated eight stores, closed or sold 56 units, and remodeled 18 stores. It also continues to evaluate some 150 “pour-over” pairs of stores, which are locations where a Rite Aid and Brooks/Eckerd unit are in close proximity, to determine which store in each pair will survive.

Revenues for the quarter were $6.6 billion, up 53.9% from the prior year. Same store sales increased 1.1%, consisting of a 1.4% pharmacy same store sales increase and a 0.6% increase in front-end same store sales. The company posted a net loss of $69.6 million for the quarter, compared to last year's second-quarter loss of $300,000. Other than same-store comparisons, results for the quarter reflect the acquisition of the Brooks Eckerd stores and distribution centers.

The chain also has raised its projected net loss for fiscal 2008, previously expected to be between $47 million and $129 million, to between $78 million and $161 million. This is largely due to interest-rate changes and increases in amortization expenses. At the end of the quarter, Rite Aid had 5,142 stores in operation.

Instant Insights /

Rite Aid Corp. Expands, Projects Higher Loss

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