Adding more than 1,800 east coast stores via the acquisition of Brooks/Eckerd increases economies of scale in advertising, purchasing, and distribution. The acquisition was a risky move considering the amount of debt it incurred in an already poor economic environment, but if it is completed smoothly, it should make Rite Aid significantly more competitive on the east coast.
Though Rite Aid has posted a $2.3 billion loss in the fourth quarter, it is successfully incorporating its most recent Brooks and Eckerd Acquisition and has increased 2% in same-store sales and a positive cash flow from operations of $324.8 million. With stock prices under $.50, Rite Aid is primed for growth.