Case analysis: Rite Aid Corporation

Case analysis: Rite Aid Corporation

Evaluation of Strategic Fit

Strong Market Presence

Based on the revenues and numbers, Rite Aid is the third largest retail drug store chain in the United States. In the FY 2012, it was reported that approximately 295 million prescriptions were filled at Rite Aid stores and on an average the stores served around 2.1million customers on daily basis. The reason behind that add competency to the company is the wide range of products that the company offered and also sell the other merchandise that are known as the 'front-end' products. Similarly, it was reported that around 25.5% of the United States population visit Rite Aid stores once a year.

Private Brand Portfolio

Another fit strategy of the organization is its strong portfolio of private brand products that sold at its stores. Only in FY2012, Rite Aid private brands contributed almost 17% of the front end sales. The best thing about Rite Aid is that private brands are divided into three tiers as per the company's new private brand structure of 2011. The three tiers are premium- national-brand equivalent and value. Under these three tiers the company producing 10 different brands. In relation to this, Rite Aid transformed almost 2,900 stock keeping units as per the new architecture and thus increased its private brand penetration.

Customer Loyalty Program

Rite Aid always been consistent in efforts required in building customer loyalty. As per the plan, the company introduced wellness+ loyalty program in 2011. Wellness+ card is a loyalty base card offered to customers who allow them to accumulate points for certain front end and prescription purchases that converted to certain amount of discount. The wellness+ card is a strategic asset to the company because there are around 52 million card holders and the sale count from these ...