Drugstores: Kodak and Fuji's Battleground

Comments on the changing digital photo market. From drugstore company Rite-Aid’s FQ309 conference call:

Kodak and the digital age:

Photo was negatively impacted by the continuing decline in one-hour photo development and our conversion from Kodak to Fuji partially offset by an increase in digital photo sales.

I’d say photo is not where it needs to be. The conversion from Kodak to Fuji really took a bite out of us. We’re still working our way through it. We have a significant amount of the equipment functioning today but we just have some work to do to restore confidence.

Comments

[KC7CW:]

Just wondering why RA thought with the declining film buisness it was a good idea to spend all that money , time and confidence in a working photo site and change. The rite aid we have here has been non-functioning since the change.

2008 Dec 30 11:14 AM

[satyr:]

I think we are only seeing a slice of the whole picture here. There is so little information provided that we cannot draw any conclusions. Also, I would not use one store as a proxy for what is happening in 5000. JMO

2008 Dec 30 01:04 PM

[Ed Samiljan:]

Sounds as if it is more of a reflection of Rite Aid's management than the change in suppliers. Years ago, in full size wholesales labs I made the switch from Kodak to Fuji and anticipated major consumer problems. It never happened! The Fuji product was excellent and all the customer wanted was a high quality photo, not a company logo.
Look to thyself, Mr. Rite Aid

2008 Dec 30 01:53 PM

[ex-field tech:]

Fuji products are not the problem with Rite Aid, it's the fact that the dumped Kodak Service & Support field service for some crappy third string service organization which couldn't do the job. I avoid Rite Aid like the plague for photo developing.

2008 Dec 31 12:09 PM

[nothingtolose:]

RA as a whole makes very hasty decisions based on the almighty dollar. Not thinking of how to better a current situation, it jumps to the next best thing. Training in either Kodak or Fuji is close to non-existent in any of the stores, and the quality isn't any better from one to the other. With the photo department transition from film to digital, you would think they would spend the money where it would be made..in the digital area, but they spent LOTS of money on the newer film processing machines. Big mistake.

Jan 04 03:26 AM

[Another tech:]

RA's major problem is keeping from going bankrupt. If you go into any store you will notice you have to hunt for an employee. Thus most stores that I serviced never did daily testing on there photolab. So your photos look like crap. It will not matter whose equipment a store has if you do not do the daily testing then the end product looks like crap. That is why when you go for reprints they never look like your originals.
I feel this has been the greatest boost to why digital has been so well embraced, customers are able to take back control of there finished product. I think once people embrace the new KODAK photo printers with there dirt cheap ink and see the same quality as you get from a store picture maker things will really change for the retailers.

Jan 11 12:31 PM