X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CAMP HILL, PA-Rite Aid management is still staying with its expansion plans of adding 800 to 1,000 new stores over the next five years, despite its pending $1.45-billion acquisition of just over 1,800 units from the Jean Coutu Group. For this fiscal year management has its sights on 125 and relocated units.

Overall, Rite Aid plans to relocate about 400 of its existing 3,300 stores. “We will be reviewing all of this in light of the new store base and geography as we move forward,” said Mary Sammons, Rite Aid’s president and chief executive officer, during the company’s second-quarter conference call.

Earlier this month Rite Aid officials made a federal filing under the Hart-Scott-Rodino Act for review of the Jean Coutu transaction, which they expect to close some time in the fourth quarter. The deal will give 1,521 Eckerd stores and 337 Brooks units in the Northeast and Mid Atlantic, all of which will be converted in Rite Aids.

Meanwhile, in response to news that Wal-Mart is cutting about 300 generic drugs to $4 in a pilot program at its Florida stores, Sammons says “we will be interested to see their results.” He company, which does not operate in Florida, could have opportunities to do more direct buying with generic-drug makers, she says.

During the quarter, which ended Sept. 2, Rite Aid’s same-store sales rose 3.8% year over year, up 4.7% in pharmacy departments and 2.3% in the front end of the stores. Revenues increased from just over $4.1 billion to nearly $4.3 billion, and the company posted a $300,000 net loss, improving from a $1.6-million drop during the same year-ago period. The company opened eight units and relocated 17 and closed 14 during its most recent quarter.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.