EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Principal Business: Rite Aid, which started in 1962 as Thrif D Discount Center and was renamed
Rite Aid in 1968, today is the third largest retail drugstore chain in the US in terms of its 4,667store
count and $26.1 billion in sales. Operating in 31 states and the District of Columbia, the
company’s stores average 12,600 square feet, out of which 68.1% of sales are generated by
prescription drugs, and 31 % by front-end merchandise (OTC, health and beauty, personal care,
cosmetics, household items, beverages, convenience foods, greeting cards, seasonal items, etc.).
The company also owns a Thrifty ice cream plant in El Monte, CA. As a result of The Jean Coutu
Group (also in this database) selling its US drug store business to Rite Aid in June 2007, this
Canadian retail chain now holds 25.2% voting power in Rite Aid. Rite Aid also has some 2,138
GNC stores within a Rite Aid store. They sell a co-branded PharmAssured line of vitamins and
mineral supplements sourced by General Nutrition Centers. GNC also supplies Rite Aid brand
vitamins and mineral supplements. By 2014, another 444 GNC sections are scheduled to be added
to Rite Aid stores, according to the company.
EB Identities: Rite Aid, Spring Garden Natural Spa Collection (premium bath and body products),
Pure Spring (upscale bath and body with therapeutic effects), Elsewhere (traditional bath
products), Soaked in Tickles (children’s bath line), Big Fizz (soft drinks), Kids Stuff (toys)
PharmAssured (co-branded vitamin and mineral supplement products with GNC), GNC (branded
vitamins and mineral supplements),mod spa (luxury bath & creams), Vextra (home electronics);
Spa Swami, (a tween bath and body line); also added to its Soaked range, Soakled in Cuddles and
Soaked in Giggles; and expanded into hair care with such brands as Salon Plus, Style Masters, 411
Info, Umberto Giannini Garden Rite, Crystal Lake, Thrifty (ice cream).
EB skus: 3,300+
Profile: Slowly, Rite Aid (NYSE: RAD) tries to turn around its operation, following its 2007
takeover of the Eckerd and Brooks drugstore chains from Jean Coutu Group in Canada. Rite Aid’s
fiscal 2012 net loss of $368.6 million isn’t as bad as the previous two years of losses (each above
$500 million), but its consecutive quarterly losses over the past 20 periods (up to mid- 2012)
continue. In April 2010, Rite Aid rolled out a wellness+ loyalty program, which up to the present
has attracted 52 million members. The company also provides a Bronze tier for those members,
who once they reach 250 points, get 10% off any Rite Aid brand products plus a one-time 10%
shopping pass. Also, in mid-2010, the company introduced a price fighter brand, Simplify. The
chain’s new private brand architecture was in place in fiscal 2011, consolidating its private brands
under three tiers. So far 2,900 items have been converted to this strategy; while that number
should exceed 3,000 by the end of fiscal 2013, especially as new products particularly under the
Simplify range debut. The company reported its private brand sales now represent 17% of total
front-end sales-- by the fourth quarter rising to 18.3% (versus 16.5% in the comparable quarter a
year earlier). Rite Aid in March 2011 began testing six new wellness stores, featuring a new decor
and expanded clinical and pharmacy services. Since then, the Wellness store format has been
introduced into 280 of its outlets; by the end of fiscal 2013, that number should increase to 500
stores. Additionally, in September 2010, Rite Aid announced a licensing agreement with
SUPERVALU’s Save-A-Lot (also in this database) discount, limited assortment grocery chain,
where Rite Aid would co-brand its stores with the Save-A-Lot format, to be tested in 10 stores in
South Carolina. These outlets feature a full grocery store presentation and a traditional drugstore
format including a pharmacy. Rite Aid also is testing a value store format. Both these pilot format
programs feature a strong front-end product presentation, including a wall of value, and a larger
dollar section. UPDATE: Rite Aid keeps trying to improve its bottom line; but its sales target
for fiscal 2013 has lately been lowered to $25.1 billion. In early December 2012, the company
introduced a new line of 33 light exercise equipment, under the FOREVER FIT brand-endorsed by