Rite Aid Corporation has tapped a brand new CEO to assist steer the pharmacy chain out of Chapter 11 bankruptcy. The Camp Hill, Pennsylvania-based company chosen Matt Schroeder for the highest role. In doing so, it would turn to a veteran of its brand and business. Schroder has been with the corporate in multiple capacities since 2000.
Schroeder succeeds Jeffrey Stein, who stepped down as chief executive officer and chief restructuring officer. He took on that capability to see the corporate through bankruptcy. Stein will resume his role as the top of Stein Advisors, a Recent York City-based firm that makes a speciality of steering large corporations through distressed situations.
Rite Aid Corporation Inc. ranks No. 114 within the Top 1000. The database is Digital Commerce 360’s rating of the most important North American retailers by online sales. It is assessed there within the Health & Beauty category. Digital Commerce 360 projects that Rite Aid online sales will reach $801.95 million in 2024.
Rite Aid web sales by 12 months
Rite Aid’s recent CEO, Matt Schroeder
Bruce Bodaken, who chaired Rite Aid’s Board of Directors through bankruptcy, praised Schroeder as the suitable fit at the suitable time, saying that he “has a deep understanding of all elements of our business.”
Schroeder graduated from Indiana University of Pennsylvania after which served in roles like investor relations and chief financial officer.
Meanwhile, Schroeder is optimistic in regards to the company’s post-bankruptcy outlook.
“I see Rite Aid’s remarkable potential, and I look ahead to working with the team as we remain committed to our purpose of helping our customers achieve whole health for all times,” said Schroeder in the corporate’s announcement.
Rite Aid’s recent struggles
Schroeder’s optimism shall be needed because the chain pharmacy sector has been roiled this 12 months with closings and struggles to remain ahead of the competition. The massive three — Walgreens, Rite Aid and CVS — have together shuttered 1000’s of pharmacies and in-store health clinics.
Manda Schweitzer-Miller, industry principal at the availability chain software firm Kinaxis, noted the competitive nature of the retail pharmacy and clinic model.
“The appeal of retail health clinics is convenience, but with more options opening and becoming more commonplace post-pandemic, like telehealth appointments and a direct-to-consumer model for certain pharmaceuticals, there are increasingly more abundant options in the marketplace,” Schweitzer-Miller said.
Rite Aid was an early adopter of a web-based presence, partnering with online pharmacy drugstore.com in 1999 for ordering medication. Still, the retailer has been challenged to maintain up digitally with other chains.
Pharmacies face competition from larger retailers resembling Amazon and Walmart which have invested in in-store and online technology to achieve benefits with customers.
“The pharmaceutical industry isn’t notorious for being early adopters of emerging tech, and on condition that these clinics and pharmacies are only a chunk of your entire retailer’s technological footprint, it’s possible that investing in tech for this piece of the business isn’t the highest priority,” Schweitzer-Miller said.
Rite Aid currently operates over 1,700 stores in america, down sharply from the over 4,000 it had at its peak a decade ago.
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