Azaleia/Rhody RIP?

I would plant a salvia like Amistad or an agastache like Black Adder there Fat Controller. Either will lift that spot. Or a phormium or a grass like calamagrostis Overdam
But, yes, time for the "wee fella" to go

 

Midwinter Fire can be very fickle......seems to lack vigour. Doesnt do well for many it seems
Caryopteris would look good there.....Sterling Silver is a beauty; silver grey foliage. Summer Sorbet, for me, the best the yellows. The foliage is delightfully sculpted.
My own feeling is that a perennial rather than another shrub would break up the "woody" impression there and add a little movement...!

 

Personally I dont think the gap is big enough, so I'd tend to just let the Laurel and the conifer take over at that ;point.
Either that, or hack back the Laurel before planting anything new.

 

Agree with Pete - I would definitely hack back the Laurel, and then plant either Lysimachia Firecracker or Penstemon Dark Towers, and Hakonechloa all gold at the front.

 

If you decide to dig out the Rhododendron I'd give it a good going hair cut and replant somewhere much much damper if possible. I think it will be really struggling having to compete with the conifer and Laurel which will be taking up all available moisture. Try to replant with as much Peat/leaf mould/compost you can lay your hands on. Personally I'd get rid of the Laurel unless it is doing a job of screening something. I have 3 huge Laurel (none of which I planted) well over 15ft tall and god knows the spread on them. I loath them BUT (funny how there is always a but!) they are covering over massive tree stumps. Their removal would entail getting a large JBC in to dig/pull them out so the Laurel stays.

 

You could get rid of the laurel, and the stumps silu. You just need a man with a stump grinder.

 

I'd give it a go @fat controller. Possibly a bit less of a hack and more of a prune! Rhododendron do respond well to hard pruning. Maybe delay prune and only prune half hard this season, see what happens and if all well do likewise next year. Absolutely anything you can do to keep the shrub's roots a bit moist will benefit it. As they are very shallow rooted they really do suffer in periods of dry/hot a la now! Wouldn't bother to feed, just anything to mulch even grass clippings would be better than nothing and certainly a good soaking will help it.

 

You could prune down half to say about say 6 to 9 inches @fat controller . The front foliage on the shrub looks less healthy so I'd prune that hard rather than the healthier rear foliage. If you do decide to prune I'd do it sooner rather than later as the new growth will need time to harden off before winter. The best time to prune is immediately after flowering.I hard pruned an ancient (over 50 years old) grotty Rhododendron last early summer mainly as it was really awkward to mow round. I was a little dubious that it would respond as it was old but hey presto it responded really well and sprouted new grow from branches which were about 3 ins in diameter so i'd expect yours to respond with no bother at all.
Should the shrub not respond you did not get encouragement to prune it from me!