Rite Aid to Grow by 125 Stores
New York City, Rite Aid Corp. announced Friday that it plans to open 125 new and relocated stores in 2008. The growth is part of an expansion plan that calls for nearly 1,000 stores over the next five years.
Rite Aid is in the process of acquiring more than 1,800 Brooks and Eckerd stores in a deal worth almost $3 billion. The transaction will make Rite Aid the largest drug store operator on the East Coast.
In other news, Rite Aid’s chief executive, Mary Sammons, received compensation valued at $4.6 million in its last fiscal year, the company said in a Friday filing with the Securities and Exchange Commission.
Home Depot May Avoid Bank Ban
Atlanta, The Home Depot may escape recently passed legislation barring retailers from operating banks. According to reports, Rep. David Scott (D-Ga.), said he supported the bill, but only if it included a provision allowing for Home Depot to continue with its plans to operate an industrial loan corporation (ILC).
According to reports, Home Depot intends to move forward with its plans to acquire EnerBank USA, and that because it applied for FDIC approval before Congress began to propose legislation on ILC bans, it should be exempt from any new laws put into place.
Although approved by the House of Representatives, the Industrial Bank Holding Company Act of 2007 still needs to go through the Senate, where it faces expected opposition from Robert Bennett (R-Utah), whose state charters most ILCs.
Hot Topic 1Q Loss Narrows
City of Industry, Calif., Hot Topic Inc. posted a smaller net loss for its fiscal first quarter on Wednesday, as sales inched higher.
For the quarter ended May 5, the company posted a loss of $809,000 compared with a loss of $1.4 million in the same period a year ago.
Comp-store sales declined 2.3% during the quarter, while revenue climbed 2% to $157.3 million from $154 million.