Thursday, October 31, 2019

Rite Aid downgraded over weak market position

Retail Dive
Rite Aid is "structurally disadvantaged," with regional concentration but a lack of national scale like its largest competitors, according to Fitch. Fitch analysts noted that competition is intensifying in the drugstore retail space as existing players like CVS and Walgreens enlarge themselves through acquisitions and partnerships. Amazon, too, is a possible future threat, they noted.

The company's retail operations are also under pressure. For the first half of the year, Rite Aid's front-end sales were down 1.1% and down 1.8% for the second quarter.. . . more