Rite Aid is offering a beloved new service for customers, despite filing for Chapter 11 bankruptcy late last year. The struggling drugstore chain is now allowing alcohol deliveries in nearly 1,000 of its stores across eight states in an expansion of its partnership with Uber Eats.
“Rite Aid’s selection of alcohol brands combined with convenient delivery ensures customers have what they need when they need it — be it for a special occasion or casual night at home,” said Rite Aid Senior Vice President Jeanniey Walden, in a press release.
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Alcohol delivery grew in popularity in 2020 during the Covid pandemic to help keep businesses afloat during shutdowns and to encourage social distancing to slow the spread of the virus.
Retail chains already deliver alcohol
Major retailers such as Target (TGT) , 7-Eleven and Walmart (WMT) have launched alcohol delivery programs and have kept them rolling even after the pandemic. Delivery services such as DoorDash (DASH) have seen a spike in demand for alcohol deliveries. According to the company’s latest report, 42% of customers who ordered alcohol through DoorDash’s app claimed that the service was convenient, saves time and provides them comfort.
The new market can be beneficial for Rite Aid amid its battle to tackle its billion-dollar debt. The company filed for Chapter 11 bankruptcy in October last year. Chapter 11 bankruptcy allows a business to continue operating while they reorganize their finances under court supervision.
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Rite Aid claimed in the bankruptcy filing that financial headwinds such as inflation, increased labor costs and reduced demand for Covid vaccines, etc., contributed to the company’s poor financial performance. It also states that increased competition and thousands of lawsuits over opioid prescriptions that allegedly caused harm to consumers has also drained its pockets.
The pharmacy has since scored $3.5 billion in financing from lenders and has closed hundreds of stores as a result of the bankruptcy.
“Rite Aid regularly assesses its retail footprint to ensure we are operating efficiently while meeting the needs of our customers, communities, associates and overall business,” said Rite Aid in a statement to Forbes in December. “In connection with the court-supervised process, we notified the Court of certain underperforming stores we are closing to further reduce rent expense and strengthen overall financial performance.”
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