Rite Aid CEO Heyward Donigan Exits
“As the company continues its efforts to enhance its competitive position in this dynamic environment, the board determined and Heyward agreed that now is the right time to identify the next leader of the business,” said Rite Aid Chairman Bruce Bodaken in the release.
“With a deep understanding of the industry and our strategy, the board was unanimous in its belief that Busy is highly qualified to serve as interim CEO while the board conducts a search for a permanent successor,” he added. “We are fortunate to have someone of her caliber to step into the role and are confident in Busy’s ability to lead the company forward during this transition period.”
The shakeup comes as the pharmacy chain has struggled to compete with big-name competitors, like CVS and Walmart. Rite Aid last year said it planned to shutter 145 “unprofitable stores,” Forbes reported. Donigan as CEO also last year led cost-cutting measures, including the elimination of Rite Aid’s COO position as well as other consolidation of leadership at the pharmacy.
In the third quarter of last year, Rite Aid reported $6.08 billion in revenue compared to $6.23 billion in revenue in the same quarter in 2021. It reported a net loss of $67.1 million in the third quarter up from a net loss of $67.1 million in the third quarter of 2021. The pharmacy chain in its Monday release reaffirmed its guidance for the fiscal year 2023, which includes revenue of around $24 billion and a net loss between $551 and $584 million.