Rite Aid Corp.

After a 2014 review found inefficiencies in its supply chain and logistics network, Rite Aid Corp. consolidated three distribution centers. Now the company is going in a new direction.

The retailer said it plans to build a 900,000 square foot distribution center in Spartanburg, S.C., its first new DC in 15 years. The new distribution center will employ nearly 600 people after it becomes fully operational and will support the inventory and fulfillment needs of approximately 1,000 Rite Aid stores in the southeastern United States.

Camp Hill, Pa. -- Rite Aid Corporation announced t that Ray Payne, currently VP, real estate west coast, has been promoted to group VP, real estate. Payne succeeds Karen Smith, who retired last year after more than 35 years with the company.

In his new position, Payne will be responsible for developing and executing the company’s real estate strategy nationwide, including establishing a pipeline of properties for new and relocated stores.

Camp Hill, Pa. - Rite Aid Corp. has increased its borrowing capacity to $3 billion as part of a refinancing of an 8% senior secured notes that are now due in January 2020. Borrowing capacity will increase to $3.7 billion when the notes are paid.

Rite Aid expects, at current rates, to save approximately $20 million in annual interest expense, based on a $3 billion facility, and approximately $50 million in annual interest expense, based on a $3.7 billion facility and the redemption of the notes.

Camp Hill, Pa. - Rite Aid Corp. has promoted Jocelyn Zazyczny Konrad, currently VP, healthcare initiatives, to group VP, pharmacy initiatives and clinical services. Konrad succeeds Karen Staniforth, who was recently promoted to the role of COO at Health Dialog, a subsidiary of Rite Aid.

Bartell Drugs has selected former REI executive Brian Unmacht as its new president.

Prior to joining the 63-store pharmacy retailer, Unmacht served as REI’s EVP and CEO. He has served as a member of Bartell Drugs’ board of directors since 2011.

Bartell Drugs’ chairman and CEO George D. Bartell said that filling the position at the family-owned company supports future succession plans as it celebrates its 125th anniversary in 2015. Bartell Drugs is the oldest and largest family-owned drug store chain in the United States.

Rite Aid Corp. says sales at stores open at least a year grew 5.3% in December, boosted again by strengthening pharmacy sales. 

Same-store sales at the Camp Hill, Pa.-based retailer grew 5.3% to $2.2. billion, beating analyst consensus of 4.5% and reflecting a 1.7% increase in front-end same-store sales and a 7.3% increase in pharmacy same-store sales.

Camp Hill, Penn. – Rite Aid Corp. beat Wall Street expectations with net income of $104.8 million in the third quarter of fiscal 2015, a 46% increase from $71.5 million the same period a year earlier. The improvement in net income resulted primarily from an increase in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and a lower last out, first in (LIFO) charge, partially offset by a higher loss on debt retirement.  

Shoppers at Rite Aid stores in New York and Los Angeles will soon get a dose of 3-D along with their prescriptions as the retailer rolls out the first of its high-tech customer kiosks at 200 retail locations.

Camp Hill, Penn. –- Same-store sales increased 5.5% in Oct. 2014 at Rite Aid Corp. compared to the same month in the prior year. Total drugstore sales rose 5% to $2.06 billion compared to $1.96 billion.   October front-end same store-sales increased 2%. Pharmacy same-store sales, which included a negative impact from new generic introductions, increased 7.1%.

Woonsocket, R.I. –- CVS Health Corp. and Rite Aid. Corp., which have both used the near-field communication (NFC) technology that supports Apple Pay, have disabled their NFC payment systems to block Apple Pay from working in their stores.