Rite Aid Restructures, CEO Steps Down

Rite Aid has begun a leadership transition plan and an organizational restructuring to better align its structure with the company’s operations and to reduce costs.

As part of the leadership transition, John Standley will step down as chief executive officer. The board will commence a search process for a new CEO, and Standley will remain CEO until the appointment of his successor.

Rite Aid also announced additional management changes, each of which is effective immediately. Bryan Everett, chief operating officer of Rite Aid Stores, has been promoted to chief operating officer of the company, succeeding Kermit Crawford who is leaving the company. Matt Schroeder, chief accounting officer and treasurer, has been promoted to chief financial officer. Schroeder is succeeding Darren Karst who is leaving the company this spring after supporting a brief transition.

In addition, Brian Hoover, group vice president and controller, has been promoted to chief accounting officer. Jocelyn Konrad, evp/pharmacy, has been promoted to evp/pharmacy and retail operations. Derek Griffith, evp/store operations, is leaving the company. Rite Aid said it also will consolidate additional senior leadership roles resulting in the elimination of certain positions.

The company also announced actions that will reduce managerial layers and consolidate roles across the organization, resulting in the elimination of approximately 400 full-time positions, or more than 20% of the corporate positions located at the company’s headquarters and across the field organization. Approximately two-thirds of the reductions will take place immediately with the balance by the end of fiscal 2020.

“Rite Aid’s board of directors is committed to more closely aligning the structure and leadership of the company with our present scale and today’s announcement is an important step in positioning Rite Aid for future success,” said Bruce Bodaken, chairman of Rite Aid’s board of directors. “These are difficult decisions and we recognize the implications they have for individuals across our organization. However, it is imperative we take action to reduce the cost of current operations and become a more efficient and profitable company.”