Back in the USSR at Rite Aid…
It’s been a tough week, so I’m in the mood to air my grievances as a grouchy consumer. What is the retail outlet of my discontent? Rite Aid (RAD), which filed its third quarter 10-Q Wednesday, detailing continued losses.
Within a few blocks of my home in New York City, I can purchase croissants rivaling those found in Paris, $150 doggie sweaters in a variety of colors, and all the truffles I can eat. However, finding basic cleaning supplies or one’s preferred brand of toilet paper can sometimes be a challenge. The most convenient place to pick up such items has been a nearby Eckerd drugstore, always clean and well-stocked. So back in 2006, when I heard Rite Aid was buying the Brooks Eckerd chain from the Jean Coutu Group, my heart sank. There were already two Rite Aid stores within minutes of my home, both suffering chronically from Soviet Economy Syndrome, in which various household staples vanish from the shelves for days on end.
According to Rite Aid’s Q, it’s been busy working on a post-acquisition process that involves “replacement of the Brooks Eckerd store systems with our store systems.” Looks like that’s moving along well, at least in my neck of the woods; earlier this week, when I ran out to my local Eckerd-turned-Rite Aid, I found it fully Sovietized. Two lonely packages of toilet paper sat on otherwise bare shelves in the paper goods section. And was there a single bottle of dishwashing liquid in the joint? Nyet. (The firm says it will make about $300M in capital expenditures during fiscal 2008 on further “integration” of the Eckerd business.)
In the third quarter earnings press release, Rite Aid Chairman/CEO/President Mary Sammons blamed the company’s disappointing results in part on “a more cautious consumer.” Maybe, but most people are still buying toilet paper, when they can find it.
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January 11th, 2008 at 3:41 pm
GO WALMART!
January 11th, 2008 at 6:28 pm
Funny, well observed post. Thanks
January 13th, 2008 at 11:14 pm
Quite accurate, and that is an inside perspective …funny too!
January 15th, 2008 at 4:35 pm
I work at Rite Aid and unfortunately the story above is more true than false. I’ve watched customer after customer leave and go to Walgreens because we’re out of stock or our pharmacy is closed. This post would be funny to me too, if my career wasn’t hooked to such an incompetent company.
January 20th, 2008 at 1:03 am
Rite is failing because it pays its associates less than any other company in the drug retail industry. Corporate management’s agenda at RAD is to pay less and therefore save more. Mary Sammons, ask Circuit City how well this business plans works. To be the best you have to have the best in the field and in comparison to CVS and Walgreens, your associates make less, have little or no training, few benefits and have little incentive to perform above the minimum requirements. Also giving up the market to Walgreens in Las Vegas is a sign of things to come as the strong get stronger and the weak get weaker.
January 23rd, 2008 at 7:41 pm
I noticed the exact same thing at my Eckerd’s turned Rite Aid. At first I thought it was just getting rid of Eckerd’s inventory until they could stock up completely from Rite Aid suppliers but it has been going on for the past couple months. I don’t know how they are going to stay in business if half the time I have to walk two blocks further, but in a different direction to get the CVS. I have just started heading over there for some items and will probably do the same for all items before long.
February 17th, 2008 at 7:15 pm
Five stars for accuracy!
March 19th, 2008 at 7:16 pm
Let me tell you something all the above story is incorect I work in rite aid as pharmacist and honestly every single day we have more and more people swiching from other pharmcy to us so don’t believe everything you read.
April 3rd, 2008 at 11:56 am
With the only pharmacy in town is a Rite Aid, and found out lately they do not care about customer service. Yesterday went to the Rite Aid Pharmacy to get a refill. (I previous had it fill out of town at a Walgreens.) The generic medication from Rite Aid was different than the previous purchase at Walgreens, that when I had taken that medication purchase at Rite Aid, I could tell the difference in the medication, that something was wrong. Went back to the Rite Aid Pharmacy, all they want to do was contact my doctor, for a different medication. I told them no, do not call me doctor, there is problem with the generic medication. The pharmacist called my doctor after I told her not too. With problems that Rite Aid is having, are they now purchasing the cheapist generics medications to sell in there pharmacies?
April 6th, 2008 at 6:10 pm
Rite aid has a serious problem with returns too.
The stores still have the old Eckerd default ordering system that orders the stores stuff when they dont order. it wastes fuel time and it damages merchandise!!
Rx is still using private couriers to deliver third shift picked Rx. what a waste.
I think if they address these problems, profits will soar!
April 12th, 2008 at 4:19 pm
I just left Rite Aid after 8 years. The morale over there is the worst. Everyone is miserable and company support at the store level is nil. It’s hard to go to work everyday in an environment like that. The low pay is just an added insult. I don’t see the company making it in the long term with it’s poor cash flow. The whole buying of Eckerd was just a foolish move to try and play keep up with CVS and Walgreens.
April 18th, 2008 at 5:10 pm
Rite Aid is a good company it is just run by too many VP,s that have little or no formal education. The worst concepts come from these prople that never deal with people on a one to one basis. I have logged over 20 years with Rite Aid. We are a pharmacy run by “grocery store” mentality. I think Mary Sammons tries hard but too much old wood is still in the rotten pile left by Martin Grass. The fools are now trying to match the $4.00 Walmart prices…..stupid..we can not make up the difference like Walmart does…we do not have the front end to do this. I had a customer bring in a $30.00 transfer coupon and also wanted us to match Walmart. The lowest AWP with all discounts on this medication was $19.77 for 30 tablets. How can we make up $15.77 + $30.00 + $cost of filling RX….we can’t. Some on needs to wake up and come see the front lines for advice. Really tired of seeing business go out the door but we have a duty to our stockholders to make a profit. I think the Couto’s will get real tired of Rite aid soon as their investment keeps falling.
April 18th, 2008 at 5:12 pm
I am a Rite Aid Corp stock holder. My stock was at $80.00 plus dollars before Martin Grass ruined the Company. As stock owners know it is is at $2.52.
I am very disappointed in the condition of the stores. The stores appear dirty. Stock is worthless
compared to the quality pre Martin Grass. The front end stock is junk.
Talk to a pharmacist. Not having a 401K or other retirement options, Ride Aide gave the pharmacist stock options. Most pharmacist lost their complete retirements if they had not diversified. Rite Aid never compensated these pharmacist, but Mr. Grass the money he sqanderd.
Shame on you Rite Aid. If you treat your employees in such a manner, I must wonder how the consumer is treated.
The Pharmacist are salaried but their pay is based hourly. They do not get a lunch or dinner break. Think of your pharmacist completing 400 prescriptions in one day and not receive a break.
Each prescription 15 minutes. Think about it, there are not 400 increments in a 16 hour day.
Now let’s talk about the managers. They do not support the pharmacist. Who does support the pharmacist These pharmacist are pushed to the limit. They have no human resource support. If a pharmacist tries to suggest a solution to the problem, then they are the disgruntled employee, and agitator, causing trouble for the Corporation.
Ok public; if you have a problem with your medicine, who do you call. If you call your physician do you get an immediate answer or a call at the end of the day or two days later?
No you call your pharmacist and you get an immediate answer.
Yes, as a Rite Aid stock holder, I will go to Walgreen, CVS, Walmart, where I will receive better treatment as a consumer.
April 23rd, 2008 at 9:47 pm
I work in the front end of a Rite Aid…it is garbage. I work in New York, the minimum wage is 7.25. I have been working there for about eight months, and make this amount, and I haven’t complained. I will complain however when the new front end hires in front of me with less experience start at 7.50…how is that done ethically? Again, the mistreatment and underpayment of their workers leads to shoddy work, and prevents good people from wanting to work there. The morale is zero. The pharmacy seems alright, but the front end is trash and Rite Aid will close its doors in 2-3 years in my opinion or sell if this keeps up. They are losing an unreal amount of money.
There is no stock. The truck of stuff we get is the most unreliable thing ever. Our manager is diligent: she orders whatever we need. We don’t always get it, because the distribution centers and Rite Aid Corporate in general are so bad it’s comical.