Rite Aid Case Study

1. History of the Company
In 1958, Alex Grass incorporated Rack Rite Distributors, Inc. Grass opened Rite Aid’s first store, through Rack Rite, in 1962, as a Thrift D Discount Center, in Scranton, Pennsylvania. 1963, Thrift D Discount Center became a drugstore chain when they opened five more stores. In 1965, the Thrift D Discount Center expanded to five northeastern states by quickly acquiring and opening new stores. In 1966, the first Rite Aid store opened in New Rochelle, New York. 1976, they introduced seventy Rite Aid private label products. The next year, 1968, they changed their name, officially, to Rite Aid Corporation and started trading on the American Stock Exchange. Then, two years later, in the beginning of the 1970’s, they moved to the New York Stock Exchange. Again, two years later, 1972, they had been operating 267 stores in 10 states. 1981, nine years later, they became the third-largest retail drugstore chain in the country. In 1983, they made over $1 billion in sales. In 1987, their twenty-fifth anniversary was celebrated and they, by then, had 420 stores in 9 states and Washington D.C., as well as Pennsylvania, where they started their business as a Thrift D Discount Center, in Scranton. Their market had greatly expanded and they had passed the 2,000-store mark to become the nation’s largest drug store chain in terms of store count. Eight years later, in 1995, they acquired Perry Drug Stores, the biggest chain of drugstores in Michigan. It was their largest acquisition to date. By then they had operated nearly 3,000 stores. That same year, Martin Grass succeeded his father Alex Grass, as Chairman and CEO of Rite Aid. The year after that, they had grown out to the West Coast and the Gulf Coast, adding more than ...

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...n since June 21, 2012. He became CEO in June 2010. He became a director of Rite Aid around June 2009. He joined Rite Aid in 1999, getting to serve in many positions such as CFO, CAO, and Senior Executive Vice President during his tenure. Standley is also Vice Chairman of the National Association of Chain Drug Stores Board of Directors and also serves on the SUPERVALU Inc., Board of Directors. (Management Team)
5. Cody
6. Personal Appraisals
Closing price (first day) $5.33 x 100 shares = $533
Closing price (last day) $6.59 x 100 shares = $659
Positive (+) Profit of $126
Jake – Not Buy
I would not purchase stock in Rite Aid Corporation right now. From what I have noticed, their stock is unsteadily rising, a bit erratically, and I am not a risk-taker at all. (RAD Historical Prices…Yahoo! Finance)
After learning about their past scandals, I would not take stock in