Source: Rite Aid
Rite Aid yesterday said that board member Elizabeth “Busy” Burr has been named interim CEO of the company, effective immediately. She replaces Heyward Donigan who has led the drugstore chain since 2019.
Ms. Burr’s resume includes executive positions at health-related companies, financial services and retail, including Carrot, Inc., Humana, Citigroup, eBay, Credit Suisse and Gap.
Rite Aid’s chair Bruce Bodaken said that “the board was unanimous in its belief that Busy is highly qualified to serve as interim CEO” as the company conducts a search for someone to fill the job on a permanent basis.
Ms. Burr, who joined Rite Aid’s board in 2019, said that she would work with the company’s board and executive team to support pharmacists and other team members in meeting the needs of customers. She didn’t indicate any plans to change Rite Aid’s strategic direction in her public statement.
Rite Aid, which has struggled for years against its larger rivals CVS and Walgreens, did show some signs of promise in 2020 as the chain’s financial performance received a boost from COVID-19 testing and vaccinations.
The drug retailer’s revenues and profits, however, took a hit over the past year. The Wall Street Journal reports that Rite Aid’s stock price fell last month to a 48-year low.
Rite Aid yesterday reaffirmed its guidance for the current fiscal year. It expects to post a net loss of $584 million to $551 million on total revenues of between $23.7 billion and $24.0 billion. The company expects to continue posting a positive cash flow.
The retailer recently pointed to small store pilots it is running in Virginia to address “pharmacy deserts” in rural and other underserved areas. The stores, which measure between 2,400 and 3,000 square feet compared to the typical Rite Aid at 11,000 square feet, feature a full-service pharmacy and a retail mix of health and wellness products. A full-time pharmacist and full-time pharmacy technician are supported by additional part-time technicians that will float between the test sites in Craigsville, Greenville and Scottsville.
Rite Aid operates 2,300 pharmacies across 17 states and also owns Elixir, the pharmacy benefits manager and service provider.
- Rite Aid Corporation Names Elizabeth “Busy” Burr Interim Chief Executive Officer – Rite Aid Corporation
- Rite Aid CEO Heyward Donigan Leaves Drugstore Chain – The Wall Street Journal
- Rite Aid looks to become an Rx oasis inside ‘pharmacy deserts’ – RetailWire
- Has Rite Aid found the right prescription for growth? – RetailWire
- Is Rite Aid already headed for a turnaround? – RetailWire