Covid caused problems in the retail sector in 2021. After a year in which Americans suffered lockdowns and many stayed mainly at home, the reopening in 2022 made it difficult for stores to figure out what inventory needed to be stocked. Rising costs for both goods and labor, not to mention supply chain challenges, have forced retailers of all sizes to deal with serious headaches.
So, the Dow Jones Industrial Average (^ DJI) started 2022 flying high. The blue chip index reached its all-time closing high of 36,799.65 points at the beginning of the year, on January 4, 2022. From there, however, the rest of the year was grueling.
Volatility rocked stock values throughout the year as investors spooked about the fallout from Russia’s invasion of Ukraine, rising inflation and interest rate hikes.
But 2022 was a year in which the largest retailers in general grew stronger. walmart (WMT) – Get a free reportAmazon (AMZN) – Get a free reportand objective (TGT) – Get a free report it had the customer reach and buying power to avoid many of the supply chain problems that plagued smaller rivals. costco (COST) – Get a free report and general dollar (managing Director) – Get a free report They also had strong years, buoyed by their ability to keep prices in check.
However, in most cases, the strength was not reflected in retail share prices, as recession fears, inflation concerns and inventory concerns dragged down shares.
Rite Aid faces a tough challenge
One company, Rite Aid (RAD) – Get a free reportHe encountered difficulties to such a degree that he found it necessary to make a change in the position of Director General.
The drugstore chain announced on January 9 that Heyward Donigan, CEO since 2019, is no longer with the company.
Rite Aid has named Elizabeth Burr as interim executive director while it seeks a permanent replacement for Donigan.
“As the company continues its efforts to improve its competitive position in this dynamic environment, the board determined and Heyward agreed that now is the right time to identify the next business leader,” said Bruce Bodaken, president of Rite Aid, in a press release. launching. “With deep knowledge of the industry and our strategy, the Board was unanimous in its belief that (Burr) is highly qualified to serve as interim CEO while the Board conducts its search for a permanent successor.”
Rite Aid had been struggling and has made at least one list of potential companies bankruptcy risk.
What we know about Elizabeth Burr
Burr was previously vice president of the Humana health insurance company. (HUM) – Get a free report.
Most recently, at Carrot Inc., she served as President and Business Director. Prior to that, Burr was the global head of business incubation at Citigroup. (C.) – Get a free report. He has also worked for Credit Suisse, eBay (eBay) – Get a free report and gap (GPS) – Get a free reportwhere she was vice president of global brand management.
“Having served as director since 2019, I have great respect for the important role Rite Aid plays as a full-service pharmacy improving health outcomes for millions of Americans,” Burr said in the news release. “I will work with the board of directors and management team to realize our great potential while supporting our thousands of pharmacists and team members who focus every day on meeting the needs of our communities and customers. With the well-established brand of Rite Aid and their committed and talented team, I look forward to delivering on our business strategy and driving value for all of our stakeholders.”
Rite Aid restated its guidance for fiscal year 2023 of total revenue between $23.7 billion and $24 billion.
