Rite Aid June sales drops 0.6 percent

Rite Aid Corp. _ the nation's third-largest pharmacy chain by locations _ said Thursday its June same-store sales fell 0.6 percent.

Same-store sales, or sales at stores open at least a year, are a key measure of a retailer's health.

Total sales for the four weeks ended June 27 fell 2.5 percent to $1.97 billion.

Front-end sales, which includes items like cosmetics and food, fell 4.5 percent last month. Pharmacy-store sales increased 1.4 percent, despite new generic introductions, it said.

Last week, the Camp Hill, Pa.-based drugstore operator refinanced most of its debt that was set to expire in September 2010.

Rite Aid had a $145 million loan and $1.75 billion credit facility maturing in September 2010. After the refinancing, its only significant debts due before 2012 are its borrowings under its accounts receivable securitization programs. Those borrowings are due in September.

Rite Aid bought 1,850 Brooks Eckerd stores in June 2007 for $2.36 billion, but sales at those stores have been weaker than at its older stores. Same-store sales at the Brooks Eckerd stores fell 1.8 percent. Front-end same-store sales fell 5 percent and pharmacy-stores sales fell 0.7 percent.

Rite Aid shares fell 14 cents, or 8.8 percent, to $1.40 in midday trading.

(This version CORRECTS pharmacy sales, rose stedda fell in 4th graf.)