Rite Aid 3Q Loss Nearly Triples
New York City Rite Aid Corp. said Thursday its loss nearly tripled in its third quarter due to costs to close stores and continuing struggles for its Brooks Eckerd pharmacies.
In the quarter ended Nov. 29, the Camp Hill, Pa., company reported a loss of $248.7 million, compared to a loss of $93 million in the same period last year. Revenue fell 0.5% to $6.47 billion from $6.5 billion.
Without one-time charges, Rite Aid said its loss was $130.1 million.
Rite Aid’s total same-store sales improved 1.4% during the quarter, but they fell 2.6% at Brooks Eckerd pharmacies.
The company said it has closed 229 weak stores over the past year, including 29 store closures in the third quarter. Rite Aid opened 13 stores, moved 23 and remodeled 11, giving it a total of 4,914 at the end of the quarter.
Staples revamps in-store marketing
Staples has signed a multi-year deal with News America Marketing to improve in-store marketing, according to the reports.
News America will create coupon machines, floor ads and other in-store marketing products in more than 1,500 Staples stores nationwide. The changes will go in effect next month.
RadioShack becomes sole owner of Mexico unit
FORT WORTH, Texas RadioShack announced that it has become the sole owner of Radio Shack de Mexico, S.A. de C.V. after purchasing the interest in the joint venture held by Grupo Gigante, S.A.B. de C.V. for approximately $43 million in cash. Radio Shack de Mexico has approximately 200 RadioShack branded stores throughout Mexico.
Commenting on the acquisition, chairman and ceo Julian Day said, “Radio Shack de Mexico represents an attractive growth platform for our company. This is a business we know well through our experience with the joint venture and the RadioShack brand has strong equity among consumers in Mexico.”
RadioShack will operate the stores and related general office, service center and distribution center in Mexico as a wholly-owned subsidiary. All of the stores and support facilities are leased locations. The stores average approximately 1,300 square feet and are primarily located in shopping centers. Radio Shack de Mexico employs approximately 1,200 people.