InvestorCenter Share Sign Up for Our Newsletter Has This Drugstore Chain Found a Winning Strategy?

InvestorCenter Share Sign Up for Our Newsletter Has This Drugstore Chain Found a Winning Strategy?

As with its competitors, Rite Aid gets most of its revenue from prescription drug sales, accounting for 68% of sales, although it does offer almost 3,000 items in general merchandise categories.  Given its front-line position in the drug distribution system, Rite Aid has rebranded itself as a health store, capable of providing a range of services including prescription management, wellness advice, and non-emergency medical treatment.

On the upside, Rite Aid’s move to a wellness format in its stores, with 800 store conversions in 2012, is allowing it to sell more higher-margin, wellness-based services, including flu immunizations that enjoyed a 60% volume increase over the prior year.

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