Prof. Howard Weiss looks at how to repurpose a chain of drug store buildings. He is also the developer of our POM and ExcelOM software, provided free to adopters.
In previous blogs, we examined the repurposing of enclosed shopping malls and former Kmart locations. The closure of Rite Aid facilities provides a different set of opportunities because of their size, layout, and location. Unlike the large footprints of department stores or shopping malls, most Rite Aid stores occupy freestanding buildings of moderate size. They are frequently located on prominent street corners, near public transportation, within walkable neighborhoods, or in suburban shopping centers with ample parking. These characteristics make them attractive to a variety of businesses seeking convenient neighborhood locations.
Founded in 1962, Rite Aid grew into one of the nation’s largest pharmacy chains. At its peak in 2008, the company operated 5,059 stores and employed approximately 112,800 people, serving customers in 24 states east of the Mississippi and 7 states west of the Rockies. The company filed for bankruptcy in 2023. By October 2025, Rite Aid announced the closure of its last 56 stores, bringing an end to more than six decades of operations.
Store closures create challenges that extend well beyond the company itself. Vacant commercial buildings often become neighborhood liabilities, attracting vandalism, illegal activity, squatters, and deferred maintenance. Instead of opposing new development through the familiar “Not In My Backyard” (NIMBY) attitude discussed in a previous blog, many communities have embraced the opposite perspective—”Yes In My Backyard” (YIMBY)—recognizing that productive reuse of these highly visible properties is far preferable to allowing them to remain vacant.
More than 1,000 former Rite Aid locations have been acquired by competing pharmacy chains, including CVS and Walgreens. Other buyers have recognized that the buildings are well suited for small-format grocery stores, with companies such as Albertsons, Kroger, Giant Eagle, and Aldi purchasing selected locations.
Temple University, for example, converted one former Rite Aid into a primary care and neurology clinic located across the street from one of its residence halls. Other former stores have been transformed into dollar stores, medical clinics, childcare centers, seasonal Spirit Halloween stores, and Rally House sports merchandise retailers. The diversity of new occupants also demonstrates the flexibility of these properties.
From an OM perspective, these acquisitions represent an efficient use of existing retail infrastructure while avoiding the cost and time required to construct new facilities.
Classroom Discussion Questions:
- Has any store near where you live been repurposed?
- Has your city, township, community ever had a YIMBY or NIMBY situation?
There are about 5,000 finished or under-construction data centers across the U.S. Farmland is an attractive target for technology companies. Data centers need large amounts of flat land and access to water and energy, the same as farmers do. Tech companies have faced backlash from locals concerned about power usage and the strain on their local grids. Lawmakers in about two dozen states are considering banning or restricting their development.
Tesla’s new residential solar panels fill the company’s missing piece. The firm was missing the energy generator (aka solar panel). Despite the solar factory in New York, Tesla spent years relying on third-party suppliers for its solar panels. Now, it can fully optimize performance across the entire home energy stack. Tesla can vertically integrate the full chain from generation (solar panels), to conversion (inverter), to storage (Powerwall), and to consumption (EV charging).
Dr. Jon Jackson is Associate Professor of Operations Management and the MSBA Director in the School of Business at Providence College.
As discussed in Ch. 8 (Location Strategies) in your Heizer/Render/Munson textbook, location strategy involves not only selecting new sites but also making tough calls about which existing facilities to consolidate or close. For FedEx, network streamlining was prompted by significant overlap between Express and Ground operations. Scott Ray, the COO-elect for U.S. and Canada surface operations explained, “The concept is pretty straightforward: Our customers don’t need both an Express and a Ground truck in the same neighborhood on the same day, and they don’t need to separate their Express and Ground packages for two separate pickups.”
We’re talking about the data centers now being built and financed by some of the world’s biggest companies in the artificial-intelligence boom. Four U.S. tech giants—Microsoft, Meta, Amazon, and Google—are planning to spend $670 billion to build out AI infrastructure this year alone as they scramble to increase the computing power needed to operate and scale their AI-related endeavors.
Retired Temple U. Prof. Howard Weiss created the Excel OM and POM software that we provide free with our text.
A recent example can be found in Middletown, PA, where residents protested the conversion of a decommissioned coin mint into a warehouse. While the project promised potential economic benefits, community members expressed concerns over increased traffic congestion, heightened noise levels, possible pollution, and the erosion of local character. Such reactions are emblematic of broader NIMBY dynamics, where objections are rooted in both tangible and intangible perceived costs.
India, Malaysia, Thailand, Vietnam, and Taiwan have emerged as the most prominent alternative suppliers to China for the technology industry, despite Taiwan’s own geopolitical challenges.
Amir Hossein Moadab is receiving his PhD at Washington State U., under the tutelage of Dr. Chuck Munson.
Shelter location isn’t just about choosing a convenient spot on a map; it’s a complex decision that involves balancing accessibility, capacity, existing infrastructure, and the needs of the community. In a real emergency, roads might be blocked, public transportation may shut down, and people with disabilities or no access to private vehicles face even bigger challenges. Overcrowded or under-equipped shelters slow things down and make it harder to meet people’s basic needs, especially for vulnerable populations.
The group also pointed to worldwide risks from corruption to efforts to combat