Rite Aid includes private label growth in ‘Store of the Future’ push
Rite Aid is in the middle of what it has dubbed an “RxEvolution.”
At the Camp Hill, Pa.-based retailer’s virtual Analyst Day event on Monday, executives outlined a plan to position its PBM offering as a leader among mid-market plans, expand the role of its 6,400 pharmacists and build a “Store of the Future” that can appeal to younger consumers — which will include some revamped private brands alongside well-known ones.
The company’s “Store of the Future” will feature a lot of new merchandise, meant to attract millennial and Gen X consumers and build the brand’s equity with the demographics. “We aren’t backing away from retail,” Rite Aid president and CEO Heyward Donigan told Store Brands in an exclusive interview Monday. “What we’re doing is focusing on retail that is on-trend and relevant for the customer that we’re going after.”
This involves exiting some categories — electronics, motor oil, clothing and other categories, Donigan said, adding that products within those categories “not only aren’t relevant to those consumers but actually degrade our brand.” What will come instead is the addition of new, trendier merchandise, as well as some needed breathing room in Rite Aid’s planogram.