I keep reading negativity about RAD closing unprofitable stores. I spent 40 years+ in retail. It is not unusual that if there are unprofitable stores being kept open because someone doesn't want to make the tough decisions........two unprofitable stores can wipe out the entire profits of as many as 8 other profitbale stores. If the closed stores that were unprofitable are in close proximity to other stores they can easily recoup 15-30% on average of the business from closed stores which makes the already profitable stores even more profitable. I suspect that with RAD moving their prescriptions from closed stores to nearby open stores they should easily retain that. My experience was to take over unprofitable operations and companies and to make them profitable. One time I closed 5% of the stores in a chain and it improved profitablity over 20% immediately for the entire remaining operation. I would add it's also the old 80-20 rule. District and Region management often spend 80% of their time trying to turn around the 20% that are problem stores instead of focusing on how to make the other stores more profitable. The smart ones out there will understand this. The rest won't. DaninFW
hey we have the same username sort of, careful Ace will accuse us of being the same person.
RAD is closing all the bad locations and leaving the profitable core stores, we saw the beginnng effects of this in the 3rd quarter. Dark leases are falling off a cliff. Shorts would be wise to cover. What do they stand to gain by shorting a $1.68 stock?? A heck of a lot less than they could lose when it soars to $4 in 2 months!
Another tiny detail, RAD acquires scripts every year. I expect that they normally acquire scripts from smalller drugstores, but could be from a closed CVS or WAG. With the loss of express scripts customers, I expect WAG to close some existing stores, say surrounding Tricon covered employees. Will RAD acquire those scripts?