Rite Aid Corp., headquartered in Camp Hill, Pennsylvania, is undergoing a transition in leadership and an organizational restructuring to better align its structure with the company’s operations and to reduce costs.
John Standley will step down as CEO. The board will search for a new CEO, and Standley will remain CEO until the appointment of his successor.
Bryan Everett, chief operating officer of Rite Aid Stores, has been promoted to COO of the company, succeeding Kermit Crawford who is leaving the company. Matt Schroeder, chief accounting officer and treasurer, has been promoted to CFO. He is succeeding Darren Karst who is leaving the company this spring. Brian Hoover, group VP and controller, has been promoted to chief accounting officer. Jocelyn Konrad, EVP of pharmacy, has been promoted to EVP of pharmacy and retail operations. Derek Griffith, EVP of store operations, is leaving the company. Rite Aid also will consolidate additional senior leadership roles resulting in the elimination of certain positions.
The company will reduce managerial layers and consolidate roles across the organization, resulting in the elimination of approximately 400 full-time positions or more than 20 percent of the corporate positions located at the headquarters and across the field organization.
Approximately two-thirds of the reductions will take place immediately, with the balance by the end of fiscal 2020. As a result of the restructuring, Rite Aid expects to achieve annual cost savings of approximately $55 million, of which approximately $42 million will be realized within fiscal year 2020. Rite Aid expects to incur a one-time restructuring charge of approximately $38 million to achieve the targeted cost savings.
“Rite Aid’s board of directors is committed to more closely aligning the structure and leadership of the company with our present scale, and today’s announcement is an important step in positioning Rite Aid for future success,” said Bruce Bodaken, chairman of Rite Aid’s board of directors. “These are difficult decisions and we recognize the implications they have for individuals across our organization. However, it is imperative we take action to reduce the cost of current operations and become a more efficient and profitable company.”
“The board believes that now is the right time to undertake a leadership transition,” Bodaken continued. “We will be focused on recruiting a leader that will best position Rite Aid to create long-term value for shareholders. As we conduct the search process, John has agreed to stay until we appoint his successor. We thank John for his outstanding leadership in guiding the company over the past several years. His leadership and expertise has been critical to ensuring the company’s stability and success through an extremely challenging environment. In addition, we are confident that Bryan, Matt and our senior leadership team have the capabilities and experience necessary to effectively guide Rite Aid forward. On behalf of the board, I want to thank Kermit, Darren and all the other departing associates for their service and contributions to the company.”
Rite Aid Corp. is a drugstore chain with fiscal 2018 annual revenues of $21.5 billion.