CAMP HILL, Pa. — Rite Aid Corp. is making changes to its category management team as it proceeds with an asset sale in which more than 40% of its drug stores will be transferred to Walgreens Boots Alliance (WBA).
The Rite Aid category management staff changes are under way, a company spokeswoman confirmed but declined to provide details.
Under a $4.375 billion deal announced in September, WBA agreed to acquire 1,932 stores, three distribution centers and related inventory from Rite Aid. The transaction is expected to be completed by this spring, the companies said.
“Following the sale of the nearly 2,000 Rite Aid stores included in the asset purchase agreement with Walgreens Boots Alliance, we are evaluating how we can better align our organizational structure with the current and future needs of our business,” Rite Aid said in a statement. “As such, we have made some staffing changes within the organization, including the category management department, that we believe will help us operate more efficiently while continuing to effectively meet our business objectives and provide a superior customer experience in our stores.”
Rite Aid also reported that WBA so far has taken ownership of 625 stores and related assets, for which it has paid Rite Aid about $1.31 billion.
“Our teams continue to make tremendous progress in transferring stores to WBA, and I want to thank them for their ongoing commitment and dedication,” said Rite Aid chairman and chief executive officer John Standley. “We are on track to complete the transfer of stores in the spring of this year. Going forward, we remain focused on the continued smooth execution of that process and capitalizing on our most significant business-building opportunities as we work together to deliver a great experience to our customers and patients, and drive value for our shareholders.”
Once the asset sale is finished, Rite Aid will have 2,569 drug stores served by six distribution centers.