Rite Aid Corporation has tapped a new CEO to help steer the pharmacy chain out of Chapter 11 bankruptcy.  The Camp Hill, Pennsylvania-based company selected Matt Schroeder for the top role. In doing so, it will turn to a veteran of its brand and business. Schroder has been with the company in multiple capacities since 2000.

Schroeder succeeds Jeffrey Stein, who stepped down as chief executive officer and chief restructuring officer. He took on that capacity to see the company through bankruptcy. Stein will resume his role as the head of Stein Advisors, a New York City-based firm that specializes in steering large companies through distressed situations.

Rite Aid Corporation Inc. ranks No. 114 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American retailers by online sales. It is classified there in the Health & Beauty category. Digital Commerce 360 projects that Rite Aid online sales will reach $801.95 million in 2024.

Rite Aid web sales by year

Rite Aid’s new CEO, Matt Schroeder

Bruce Bodaken, who chaired Rite Aid’s Board of Directors through bankruptcy, praised Schroeder as the right fit at the right time, saying that he “has a deep understanding of all aspects of our business.”

Schroeder graduated from Indiana University of Pennsylvania and then served in roles like investor relations and chief financial officer.

Meanwhile, Schroeder is optimistic about the company’s post-bankruptcy outlook.

“I see Rite Aid’s remarkable potential, and I look forward to working with the team as we remain committed to our purpose of helping our customers achieve whole health for life,” said Schroeder in the company’s announcement.

Rite Aid’s recent struggles

Schroeder’s optimism will be needed as the chain pharmacy sector has been roiled this year with closings and struggles to stay ahead of the competition. The big three — Walgreens, Rite Aid and CVS — have together shuttered thousands of pharmacies and in-store health clinics.

Manda Schweitzer-Miller, industry principal at the supply chain software firm Kinaxis, noted the competitive nature of the retail pharmacy and clinic model.

“The appeal of retail health clinics is convenience, but with more options opening and becoming more commonplace post-pandemic, like telehealth appointments and a direct-to-consumer model for certain pharmaceuticals, there are more and more abundant options on the market,” Schweitzer-Miller said.

Rite Aid was an early adopter of an online presence, partnering with online pharmacy drugstore.com in 1999 for ordering medication. Still, the retailer has been challenged to keep up digitally with other chains.

Pharmacies face competition from larger retailers such as Amazon and Walmart that have invested in in-store and online technology to gain advantages with customers.

“The pharmaceutical industry isn’t notorious for being early adopters of emerging tech, and given that these clinics and pharmacies are just a piece of the entire retailer’s technological footprint, it’s possible that investing in tech for this piece of the business isn’t the top priority,” Schweitzer-Miller said.

Rite Aid currently operates over 1,700 stores in the United States, down sharply from the over 4,000 it had at its peak a decade ago.

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