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The past few years have been brutal for retailers, because inflation was not left.
When inflation began to crawl up in 2021, many experts assumed that it would be short -term.
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Consumers had gone to the upper spending after receiving the stimulus, and the offer was unable to keep pace with the request. This led to prices, to the point that inflation reached brutal levels in 2022.
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But then something annoying happened. The inflation decided to continue. It has been a maximum since then.
In March, the costs of living as a whole increased by 2.4 % annually. This is not a terrible level. But it is sufficient to make consumers rethink the way they spend their money.
Consumers have taken the reducing non -basic spending during the past two years to deal with higher costs. This was a great driver to close the retail and bankruptcy stores.
Photo and colon source; Shutterstock
There is no fortified retail dealer from changing consumer habits
You believed that pharmacies would get a decent survival force in the wake of low consumer spending.
It is one thing for consumers to lower things like clothes and restaurant meals when money is narrow.
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But pharmacies, by nature, storing their shelves with basic elements. Many of these elements are the things that the typical consumer cannot dispense with.
It usually has pharmacies on the site as well. Perhaps there is no more necessary purchase than prescribed medications.
The aid can not be shed
Although it is easily classified as a basic retail company, Rite Aid has struggled in recent years.
In early May, Rite Aid applied for bankruptcy for the second time in less than two years, noting the financial and continuous challenges related to stock.
RITE AID faced intense competition not only from my competitors like CVS and Walgrens, but also Big Box stores like Walmart. The Amazon invasion in the pharmacy area also did not help matters.
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In fact, pharmacies have faced increasing competition from online pharmacies, including the pharmaceutical company from Mark Koban.
Banking was not necessarily the option of Rite Aid. The company was seeking a buyer earlier in the year, but it was unable to find one.
Now, Rite Aid is approaching its entire real estate portfolio to seize it as part of the semester 11.
Rite Aid contains approximately 1,200 stores rental and looks forward to assuming offers. Rental contracts differ in terms of the size of the store, from about 5,000 square feet for smaller stores to 50,000 square feet or more for large stores.
While it is difficult to obtain a retail space, there will be no good opportunity for the opportunity, I will not have the time to find buyers to take rental contracts. But there was also a recent flow of store rental contracts that enter the market as other retailers went on to bankruptcy themselves.
Not so long ago, Niche Retailer Party City has placed its stores for seizure, as did the Craft and Fabrics Joann series. Some of this rent is still in auction and it does not seem to have been seized.
More bankruptcy:
- Restaurant files and the famous bar series to semes 11 bankruptcy
- Followed sports shoes series for 11 bankruptcy
- Prizes -winning cosmetic brand files
However, the question is whether the company can flourish in an era that customers can get a prescription from a doctor, rather than relying on weight loss support programs to rid the pounds.
But a single thing that may run the RITE AID rental contracts for them is that a large number has less rents than the market. These rents are likely to leak in particular quickly.
In addition, some RITE AID rental contracts provide benefit as they are high -definition sites that get a lot of traffic. This rent is likely to fly from the market.
