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Nice bounce for Rite Aid after report on June sales

  • Rite Aid (RAD +5.7%) reports total sales for June rose 3.5% to $1.995B.
  • Same-store sales were up 3.9% for the period with front-end sales up 0.9% and a pharmacy comp of 5.4%.
  • The results lag those of Walgreen which were reported earlier.
Comments (11)
  • popeye305
    , contributor
    Comments (257) | Send Message
     
    Indeed, they do lag Walgreens numbers by about half as good. Want to know why? If you have been following my previous remarks, you know- Customer Service also is lagging by half!

     

    Does if not dawn on rational thinking people, that if current management came in to a total mess, and they did, and while they should be congratulated on areas they have paid attention to (which does not include service) the sky should be the limit in posting much better numbers than is currently the case. If Walgreens is always much better run, in theory more difficult to improve beyond current operations, and can still post 7% gains, why can Rite Aid only post 3.5% monthly improvement from last year. Since the company has SIGNIFICANTLY more running room to improve, compared to Walgreens, why aren't they posting 7% OR BETTER numbers, especially in the front end which is anemic. The answer lies in whether customers are wanting to shop Rite Aid in more significant numbers. True, the Wellness stores are performing better (and could be doing even better, but for service issues) but they represent only 25% of all stores. So, therefore, Rite Aid better pay more attention to the other 75%, or someone else may do it for them.
    3 Jul, 11:31 AM Reply Like
  • flynnskinc1
    , contributor
    Comments (9) | Send Message
     
    I would like to know how you get your info on the bad customer service that is weighing Rite Aid down. Do you travel around the country stopping in to stores to check on their service? I have 3 RA stores in my town that I shop. I have never had a problem in any of them. The staff is always friendly, courteous and efficient. Two of the stores are fairly new and the third has gotten a face lift. They are every bit as nice as their 2 big competitor's stores. I think that you had a bad episode at your local RA and now bad mouth the entire workforce over it. They probably cringe when they see you coming. Rite Aid's stock has been very beneficial to my bottom line and I will continue to be a loyal customer.
    3 Jul, 04:54 PM Reply Like
  • popeye305
    , contributor
    Comments (257) | Send Message
     
    flynnskinc1

     

    Apparently, you are new to reading posts on Rite Aid OR like "Mr. Double Digits" perhaps you do not want to be confused with the facts. Yes, yes, yes I have been going around the country for 14 years now as a Rite Aid shareholder, not a former employee. Had you read the other posts you would have already known that. I have reviewed my observations with senior management verbally and in writing for most of that time, after spending my own money doing so. I own 250, 000 shares long; if you are a shareholder you would know that from the last three (3) years proxy statements. There has not been a time that my complaints have not been ultimately responded to my management (even though good management would never have allowed these ridiculous problems to exist in the first place). In one case, a regional manager was fired as a result of my findings. Again, had you done due diligence and read all the other Rite Aid comments on SA, or gone around the country as I have indicated on more than one occasion or been my traveling buddy you would be retracting your comments, but you have decided to judge 4600 stores based on your LOCAL few stores. The stock price is based on 4600 stores, not your few stores or we would be at $21. a share now; we were already $12. in January 2001, then dropped to $5 in August 2005 when Mr. Standley left the company temporarily (I bet you did not know that). No doubt in 2001 you would be making the same comments you are making now, despite a 60% haircut by 2005! As I have indicated repeatedly, you may be lucky to have a good store manager, or a good district manager, or less likely a good regional manager. Unfortunately, that is not the universal experience, and was not the experience by several reporting shareholders at the Annual Meeting this year; but of course you decided not to show up there to hear the FULL truth.

     

    My comments, my unpaid efforts over the years has been to make this a more valuable company for me and every other shareholder including you and Mr. Double Digits. Yes, we can get to double digits, I am long for a reason! However, we could have, we would have already been there with the first digit being a "2" instead of a "1" which Mr. Double Digits is dreaming about. This writer's biggest critics here come from those who apparently say "Don't confuse me with the facts, my mind's made up". You can continue to do that while we continue to appear on the #2 Worst Retail Store in America on Customer Service as reported by 24/7 Wall St., a division of Market Watch, a highly respected website or the ACSI Index which shows Rite Aid's performance actually deteriorated from last year, in itself not good even then. These independent sources are all wrong but you and my other critics think you are right? Fortunately, there is no jury to decide who to believe. I have my facts nationwide, and you have your few stores.
    5 Jul, 10:09 AM Reply Like
  • dictionshunary
    , contributor
    Comments (156) | Send Message
     
    Don't worry about the spinach eater Flynn. There are always folks who will post negs about companies. I discovered on a similar forum the negative poster was a fired former employee of the company he was bashing, another was one who bought high. Perhaps he bought high high but I can't prove it! I'm long RAD and will hold. In at 1.59 and looking for double digits within a year. Too many good things happening. Older stores are being upgraded and some that are in depressed areas do have some depressed employees but over all they are AOK. We highly recommend RAD.
    3 Jul, 06:22 PM Reply Like
  • GameKing13
    , contributor
    Comments (280) | Send Message
     
    Guys, if you read Popeyes posts in all of the RAD articles, you'll see he's HEAVILY invested with them. His criticism is constructive- he sincerely wants change for the better
    3 Jul, 07:30 PM Reply Like
  • popeye305
    , contributor
    Comments (257) | Send Message
     
    GameKing13

     

    Would you like to apply for a job as my body guard. I could have used you for that position at the Annual Meeting(lol).
    5 Jul, 10:30 AM Reply Like
  • richard costello
    , contributor
    Comments (10) | Send Message
     
    I'll take Jim Cramer's word on the future of RAD over spinach boys negativity any and everyday of the week!!!
    3 Jul, 07:37 PM Reply Like
  • ara1029
    , contributor
    Comments (126) | Send Message
     
    Nothing quite like Due Dilligence, is there - Mr. Costello... with that mindset of yours, there won't be many days left for you to work with.... That said, I must point out that while Cramer was actually trashing RAD this time last year, Popeye - or "spinach boy" - as you respectfully refer to him as, was heavily invested in it (as was I, though not quite as heavily unfortunately) -nonetheless, we are both profiting from the bandwagon hoppers! Thanks! :) Still plenty of room!

     

    "I'll take Jim Cramer's word..." (someday we'll see that added to the list of famous last words, right alongside "what could possibly go wrong?!" and "I wonder what happens if I touch this live wire?")

     

    Good luck!
    4 Jul, 08:09 AM Reply Like
  • Tim'S
    , contributor
    Comments (65) | Send Message
     
    Ara1029,

     

    Great delivery. Folks like you are why I enjoy Seeking Alpha.

     

    Tim
    4 Jul, 07:22 PM Reply Like
  • popeye305
    , contributor
    Comments (257) | Send Message
     
    Richard Costello

     

    A word about Cramer

     

    1. The Wall Street Journal previously did an analysis of every recommendation that Cramer made during a period of time and found he was flat out wrong over 50% of the time.
    2. In 2007, immediately after the Eckerd purchase when the Rite Aid stock hit $6.50 per share, Cramer said (and I will never forget it, because I got sucked in and did not sell) that the stock was "resting here" on the way to $10.. I watched my investment go straight down from there to 20 cents by 2009. Did Cramer forget to remind you of that? The economy excuse was wrong; it was the lousy service that showed Rite Aid stores were ghost towns, and Walgreens across the street were crowded; again readers here would have known that had they done there due diligence. Of course, you could say why didn't I sell if I knew that? I never told you I was smart! (lol). Or maybe when you invest you have to have a lot of patience, and I think I pass that test.

     

    Having said all this, I believe Cramer is right this time, but, I repeat, we will never maximize shareholder equity with the level of service we now have and with the poor employee relations that senior management has with it's employees (see Glassdoor.com on Rite Aid). We can and will do better in the stock price, which will probably only be half as good as it could have been, unless senior management finally "gets it". At the Annual Meeting, Mr. Standley indicated his #1 takeaway from the Meeting was that they needed to improve on service. I am waiting 14 years now for that, from someone who did a terrible job at that at Pathmark Supermarkets, according to Consumer Reports, Mr. Standley's prior employment as CEO. Lets see if we got lip service again, or whether this management is capable of getting us off these "Worst Of" Lists.
    5 Jul, 10:27 AM Reply Like
  • Matthew Mazurczak
    , contributor
    Comments (914) | Send Message
     
    Great SSS and the pharmacy continues to outperform. Analysts estimates were 2.6% and they beat by 50%

     

    The Goldman Sachs Analyst had some positive comments out today.
    3 Jul, 10:31 PM Reply Like
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