Rite Aid Reorganizes Exec Team to Streamline Operations

COO position eliminated as part of ongoing efforts to reduce costs and “remove layers”

3/9/2022

Rite Aid has realigned its management structure to streamline operations.

Rite Aid Corp. has taken steps to realign its management team and streamline the company’s operations, including the elimination of the Rite Aid COO position and the consolidation of its pharmacy leadership. As a result, COO Jim Peters and EVP and Chief Pharmacy Officer Jocelyn Konrad have left the drug store chain.

Karen Staniforth, SVP, clinical pharmacy services, will take on the title of chief pharmacy officer, which going forward will be focused specifically on centralized pharmacy operations, in addition to her current responsibilities. Andre Persaud, EVP and chief retail officer, will take over field operations for pharmacy as well as oversight of front end operations. Staniforth, Persaud and Erik Keptner, SVP and chief marketing and merchandising officer, will report directly to Heyward Donigan, Rite Aid’s president and CEO. In addition, Justin Mennen, EVP and CIO, will expand his responsibilities to include leadership of all digital and e-commerce with the new title of chief digital and technology officer.

“The changes we announced [March 8] are part of our ongoing efforts to reduce costs and remove layers,” said Donigan. “Karen, Andre, Erik and Justin have been instrumental in bringing our full suite of retail products and pharmacy services to our customers, and I look forward to working directly with them as we execute on our omni-pharmacy strategy.”

Donigan continued, “I also want to thank Jim and Jocy for their many contributions and wish them well in their future endeavors.”

The reorganization comes after Rite Aid indicated in its third-quarter earnings report in December 2021 that it was conducting a rigorous assessment of its store base and implementing a store closure program. The company said that the program’s primary focus is to reduce costs, drive improved profitability, and ensure that Rite Aid has a healthy foundation to grow from, with the right stores in the right locations, for the communities it serves and for its business.

The company has identified more than 60 stores for closure, which is expected to provide an annual EBITDA benefit of approximately $25 million. Associates affected by store closures are being offered the opportunity to transfer to another store. The review work is ongoing.

For its third fiscal quarter ended Nov. 27, 2021, Rite Aid reported that adjusted EBITDA from continuing operations increased 12.7% to $154.8 million, compared with last year’s $137.4 million. Its revenues from continuing operations increased 1.8% to $6.23 billion, compared with the prior year’s $6.12 billion. Net loss from continuing operations was $36.1 million, or 67 cents loss per share. Adjusted net income from continuing operations was $8.2 million, or 15 cents income per share, compared with the prior-year third quarter’s $21.6 million, or 40 cents per share.

With more than 2,000 retail pharmacy locations across 17 states, Camp Hill, Pa.-based Rite Aid is No. 19 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in North America.