Rite Aid Plans 117 Store Closings
In the wake of significant Q4 and fiscal 2008 net losses, drugstore retailer Rite Aid plans to close 117 stores across the U.S. this year.
According to the Associated Press, Rite Aid
will close stores across the U.S., focusing on locations that have poor sales and/or are located near other Rite Aid locations. Of the 117 stores slated for closure, about 70 are locations Rite Aid purchased from Brooks Eckerd in 2007.
Rite Aid
sold seven stores in San Francisco, CA and five stores in eastern Idaho to rival drugstore chain Walgreens in February. By the end of May 2009, the retailer plans to have closed another 55 stores. Rite Aid also plans to
close a distribution center in Bohemia, NY in May 2009 and
a distribution center in Newnan, GA in September 2009. Rite Aid acquired both facilities as part of its 2007 Brooks Eckerd store purchase.
Including non-cash charges, Rite Aid reported net losses of $2.3 billion in Q4 2008 and $2.9 billion in fiscal 2008. Without the charges, Rite Aid’s net losses were $116.9 million for the quarter and $640 million for the year. The retailer’s revenues and same store sales went up during the fiscal year but down for the quarter. During fiscal 2010, Rite aid predicts revenues will stay roughly flat, between $26.3 and $26.7 billion, and same-store sales will improve 0.5-2.5%. Rite Aid also predicts a net loss between $210 and $435 million.
Rite Aid opened 33 new stores, relocated 56 stores, remodeled 70 stores, acquired nine stores, and sold or closed 200 stores last year. Stores in operation at the end of the year totaled 4,901.
