Rite Aid Corporation (RAD) is a leading national pharmacy chain with more than 2,500 stores across the United States. The company has been struggling financially for several years now, and its stock price has fallen significantly in recent months.
One of the main reasons for Rite Aid’s financial problems is its reliance on the pharmacy benefit management (PBM) business. This sector of the retail industry is extremely volatile, and has been experiencing significant growth in recent years but is now starting to decline.
This has put a significant strain on Rite Aid’s finances, and the company has been forced to make significant cuts to its operating costs in order to try and stem the bleeding.
In addition, Rite Aid has been hit hard by the recent opioid epidemic. Pharmacies are a key source of drug addiction treatment, and as opioid use has exploded in recent years, so too has the number of people seeking treatment at Rite Aid pharmacies.
This has put a major dent in the company’s profits, and has forced it to take measures to try and reduce its exposure to this sector of the market.
All of these factors have led to a sharp decline in Rite Aid’s stock price, which is why investors are now looking for signs that the company is starting to turn around. However, it remains to be seen whether or not Rite Aid can stem its financial decline and return to profitability.
