-
Headquarters
30 Hunter Lane, Camp Hill, 17011, Pennsylvania, United States -
Annual Global Sales
$24,568,000,000
Total U.S. Sales
$24.1 billion in fiscal 2023 (ended March 4, 2023)
Total U.S. Stores
Approximately 1,700 stores in 16 states (as of March 5, 2024)
Shopper Count
Average of two million per day
Key Facts
- Third largest drugstore chain in the U.S. based both on revenue and number of stores
- 61% of Rite Aid stores are freestanding, 57% include a drive-thru pharmacy and 69% include a GNC store within a Rite Aid store (as of March 2023)
- Sold approximately 45% of its stores to Walgreens in 2017
- Rite Aid filed for Chapter 11 on Oct. 15, 2023
Key Executives
- Chairman of the Board of Directors: Bruce Bodaken
- Chief Executive Officer, Chief Restructuring Officer: Jeffrey Stein
- Chief Financial Officer: Matt Schroeder
- SVP and Chief Accounting Officer: Steve Bixler
- EVP and Chief Legal Officer: Thomas Sabatino
- Head of Retail Operations: Bill Miller
- Chief Pharmacy Officer: Karen Staniforth
- SVP, Chief Merchandising Officer: Pamela Kohn
- SVP, Chief Marketing Officer: Jeanniey Walden
- SVP, Category Management and Merchandising: Bill Renz
- SVP, NY Metro Division: Mark Kramer
- SVP, Supply Chain: Bill Jackson
- SVP, Enterprise Technology Solutions: Christine Rose
- VP, Corporate Communications Officer: Jeffrey Olson
- VP, E-commerce: Dean Bowerman
- Group VP, Procurement, Pricing and Analytics: Nate Newcomer
- Senior Manager, Special Projects: John Lerch
- Senior Director, Grocery: Robert Serafin
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Collaborative Alliances
- Displays and Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Sponsorships
- Marketing Expenditures
Market Position and Strategy Overview
Market Position and Strategy Overview
Rite Aid is the third largest drugstore chain in the U.S. (behind both Walgreens and CVS/pharmacy). The chain suffered years of losses and was set to be acquired by Albertsons Cos. before that deal fell through in August 2018. In 2020, the retailer announced its RxEvolution strategy for transforming the company into the leading whole health destination that treats mind, body and spirit, refreshing its branding and launching an advertising campaign demonstrating a commitment to providing a fusion of traditional medicine and alternative remedies to help people not just get healthy, but get thriving. The brand refresh included a new logo and a refreshed digital experience, and is reflected in the Store of the Future store prototype the retailer piloted in select markets.
Rite Aid differentiates stores from other national chain drugstores, in part, through its Rite Aid Rewards loyalty program, its Wellness format stores, innovative merchandising, private brands and its partnership with GNC, a leading retailer of vitamin and mineral supplements. The chain offers a wide variety of products through its portfolio of private brands.
Aiming to become “a neighborhood destination for health and wellness,” Rite Aid has made a number of moves to help customers manage their health care. The chain sees growth opportunities in developing programs that meet the specific needs of “poly-chronic” patients who suffer from multiple chronic conditions and often require assistance managing complex prescription regimens.
Recently remodeled Wellness stores (see Store Formats) spotlight pharmacy services with an aisle that cuts across the store directly to the pharmacy.
In October 2015, Walgreens Boots Alliance announced a merger agreement with Rite Aid. The transaction was ultimately canceled after stalling for more than a year due to antitrust concerns from the Federal Trade Commission. Rite Aid and Walgreens instead inked an agreement in which Walgreens purchased 2,186 stores from the retailer, essentially halving its operating footprint.
Rite Aid filed for Chapter 11 on Oct. 15, 2023. Shortly after the ruling, the retailer listed 154 underperforming stores in 15 states that it planned to close as part of its restructuring plan. As of mid 2024, Rite Aid has shuttered more than 500 stores nationwide.
Must-Know Terms
Must-Know Terms
- Rite Aid Rewards: Rite Aid’s customer loyalty program which was rebranded in 2022 after ending wellness+.
- Rite Aid Performance Media: Debuted in 2020, the retailer's marketing solutions and advertising arm, powered by Quotient.
- Load2Card: Digital coupon service that allows Wellness+ members to “clip” digital coupons and redeem automatically upon checkout.
- Wellness Ambassadors: Specially trained associates who provide additional customer service in remodeled “Wellness” format stores.
Thought Starters
- Align with Wellness+: Rite Aid favors programs that bundle shopping solutions with rewards tied in to its loyalty program.
- Bring your own insights: Rite Aid welcomes insights that support creative merchandising concepts, especially from its supplier advisory board comprised of 32 member companies.
- Build for the future: Rite Aid’s more than 1,200 remodeled Wellness format stores outperform older stores significantly and represent the chain’s latest thinking on merchandise assortment and positioning.
Promotional Strategy
Promotional Strategy
Rite Aid regularly hosts overlays to national campaigns from packaged goods vendors, including sweepstakes. (See “Loyalty Programs.”)
The chain also hosts sweepstakes and incentives as part of health initiatives and cause-marketing campaigns. (See “Promotional Calendar” at right.) Some components of these programs incorporate national brands, while others leverage vendor sponsorships. The campaigns are promoted aggressively in circulars, social media and in stores on stanchion signs, posters and endcaps merchandising participating brands.
To help busy families Rite Aid in 2023 offered a Nov. 1 After Work Wednesday clinic at select stores, where families could walk in and get flu, COVID-19, RSV and other vaccinations from 5-9 p.m.
Ongoing Programs
- Wellness65+ Wednesdays: Seniors enrolled in the Wellness65+ program get 20% off select purchases and free health screenings on the first Wednesday of each month.
- Quit for You: Year-round program with GlaxoSmithKline offers help for smoking cessation and relevant deals.
Merchandising
Merchandising Strategy
Rite Aid carries approximately 24,000 front-end SKUs, which vary by location, store size and shopper demographics. Front-end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other everyday and convenience products.
Sales By Category | ||
Prescription drugs | 68.3% | |
OTC drugs and personal care | 10.2% | |
Health and beauty aids | 4.8% | |
General merchandise and other | 16.7% | |
Source: Rite Aid 2017 Annual Report |
The product assortment focuses on value items and increasingly on the chain's private and proprietary labels. Rite Aid tailors its merchandise mix to capitalize on seasonal shopping behavior, increasing inventory for holidays and health-related occasions such as allergy and cold and flu seasons. Catering to senior citizens, Rite Aid has increased its selection of health aids including wheelchairs, canes and bath safety products.
Through a 20-plus-year exclusive partnership with Pittsburgh-based General Nutrition Centers Inc., more than two-thirds of all Rite Aid stores house either GNC-branded vitamin departments or store-within-a-store shops that stock the full GNC lineup.
As part of its turnaround strategy, Rite Aid also has focused on building categories that shoppers don’t typically associate with drugstores such as consumer electronics, dorm room “essentials” and gardening items. Flat-panel television sets have appeared during the back-to-school, holiday and Super Bowl seasons.
Newer “Wellness” store formats (see “Store Formats/Growth”) feature an expanded menu of clinical pharmacy services and health and wellness products. Wellness stores highlight all-natural personal care and home care products, organic and gluten-free foods and beverages, fitness and workout equipment, and wellness-themed books and magazines.
Collaborative Alliances
Collaborative Alliances
Rite Aid maintains a supplier advisory board of 32 member companies that collaborate with the chain’s management to improve procedures and technology. Board members devote resources to projects and participate in semi-annual supplier meetings where Rite Aid recognizes outstanding contributions from its leading suppliers. Among the recent winners and runners up are:
- Unilever, for developing and funding an interactive men’s care display that uses an Apple iPad to provide information on key brands. Unilever also helped Rite Aid introduce color-coded navigation in the personal care department and regularly contributes consumer research and insights to increase both conversion and basket size.
- Procter & Gamble, for delivering consistent innovation in category management and for developing account-specific promotions leveraging the brand’s official Olympics sponsorship.
- Bayer Corp., for combining consumer and category insights with data provided by New York-based 1010data to spearhead one of Rite Aid’s CRM programs and deliver a 7% sales increase and a 10% profit increase.
- Anheuser-Busch InBev, for helping to grow the beer business by partnering with their biggest competitor, MillerCoors, to develop a best-in-class category review process and implement Rite Aid’s Craft Beer Initiative.
- American Greetings, which made significant investments to provide new fixtures in Rite Aid’s Wellness stores.
- The Kayser-Roth Corp., for redesigning the hosiery category to include colorful leggings and tights that attracted new and younger consumers. The effort delivered a 42% increase in sales and 56% increase in profits.
- The Perrigo Group, for delivering creative marketing support for private brands such as on-pack instant coupons and free movie ticket and gas promotions tied to custom shelf trays.
- First Quality Brands, the supplier of Rite Aid brand baby care, incontinence and sanitary protection products, for helping to develop the Tugaboos brand and drive sales increases in the diaper category.
Rite Aid also collaborates with:
- Nielsen IQ, on a Connected Collaboration platform, powered by Rite Aid data assets and NIQ's data science and software. This lets suppliers and retailers diagnose what drives business performance at the retailer through an intuitive user interface.
- McKesson Corp., which holds a contract to supply all brand-name and generic pharmaceuticals. In 2018, McKesson and Rite Aid inked a new 10-year deal.
- GlaxoSmithKline on the year-round “Quit for You” smoking cessation program.
- Johnson & Johnson on the Wellness+ allergy program.
- Procter & Gamble on “Early Detection” breast cancer activity.
- General Mills on Box Tops for Education.
Rite Aid operates a Supplier Portal and offers released its latest Supplier Compliance Guide in 2020.
Displays and Signage
Displays & Signage
Rite Aid accepts a wide variety of vendor displays and signs, including endcaps, freestanding displays, power wings, shelf trays, counter stands, merchandising strips, ceiling hangers, aisle violators and window signs. (See Retailer Receptivity Chart below.) Secondary displays generally are changed out on a monthly basis.
Permanent or semi-permanent brand-supplied displays also are accepted, primarily from cosmetics companies and high-volume packaged goods manufacturers (Coca-Cola Co., PepsiCo/Frito-Lay).
Endcaps are typically reserved for seasonal or temporary promotions that group products from one or multiple vendors under a themed header with shelf trays and shelf tents. Common partners include Procter & Gamble, Johnson & Johnson and Unilever.
Rite Aid runs a monthly "New at Rite Aid Endcap" program that merchandises vendor products on "highly visible" endcaps, supported by promotional headers. The endcaps (and occasional in-line displays) commonly merchandise new items from a single vendor or category. A weekly "Red Hot Specials" program dedicates two upfront endcaps to specific sale items.
The number of temporary floorstands accepted varies by store size. Smaller stores in the eastern U.S. offer little additional room, and secondary display space is generally dedicated to generic, permanent fixtures (except in the cosmetics department, where counter trays are prevalent).
Larger stores in the western U.S. offer more room for temporary displays, especially upfront and around the perimeter. Stores will also stack cases at aisle ends to add more inventory for sales items.
Rite Aid uses a wide range of temporary signage to support its own initiatives and cause marketing campaigns. Stanchion signs near the entrance, posters, aisle violators and ceiling hangers are used extensively to promote the Wellness+ loyalty program, eligible +UP Rewards products, Load2Card digital coupon service and cause campaigns, such as KidCents.
Rite Aid Best Bets |
|
"Red Hot Specials" endcaps put brands upfront and center in stores. | |
Merchandisers |
|
Endcap Displays | Sometimes Used |
Shelf Trays/PDQs | Often Used |
Pallets | Sometimes Used |
Floorstands/Shippers | Often Used |
Dump Bins | Often Used |
Power Wings/Sidekicks | Often Used |
Category Management Systems | Sometimes Used |
Spectaculars/Lobby Displays | Sometimes Used |
Rack | Sometimes Used |
Secondary Refrigerated Displays | Rarely Used |
Signage/Media |
|
A-Boards | Rarely Used |
Balloons | Rarely Used |
Base Wrap | Rarely Used |
Ceiling Signs | Sometimes Used |
Checkout Ads | Sometimes Used |
Checkout Dividers | Rarely Used |
Circular Rack Ads | Often Used |
Cooler Clings | Sometimes Used |
Counter Cards | Sometimes Used |
Demonstration/Sampling Kits | Sometimes Used |
Digital Signage Ads | Rarely Used |
Endcap Signage Kits | Often Used |
Floor Clings | Rarely Used |
Header Cards | Often Used |
At-shelf Product Demo/Sample | Sometimes Used |
In-line/Category Headers | Often Used |
In-Store Radio | Often Used |
Inflatables | Sometimes Used |
Outdoor Signage | Rarely Used |
Neckhangers | Sometimes Used |
New Item Showcases | Sometimes Used |
Pole Toppers | Often Used |
Printed Handouts | Often Used |
Placeholders, On-shelf | Sometimes Used |
Price-label Messaging | Often Used |
Security Pedestal Wrap | Often Used |
Shelf Blockers | Sometimes Used |
Shelf Strips | Sometimes Used |
Shelf Talkers | Often Used |
Shelf Danglers/Wobblers | Often Used |
Shopping Cart Ads | Rarely Used |
Side Panels | Often Used |
Standees | Sometimes Used |
Take-one Dispensers | Sometimes Used |
Tearpads | Sometimes Used |
Stanchion Signs | Often Used |
Wall Banners | Sometimes Used |
Window/Door Signs | Sometimes Used |
Violators | Often Used |
Third-Party Media Operator |
|
See article. |
In-Store Media
In-Store Media
Valassis Inc.'s Redplum handles at-shelf advertising for Rite Aid. Available vehicles include:
- AdPOP: a shelf talker for product announcements or cross-merchandising programs.
- BladePOP: a violator for advertising across multiple shelves.
- CouponPOP: a dispenser that can distribute instantly redeemable coupons.
- InfoPOP: a dispenser for distributing collateral such as recipes, rebate offers or sweepstakes entry forms.
Ad wraps on security pedestals at store entrances are handled by StoreBoard Media, New York.
On-shelf POPs promotional signs are provided by Insignia Systems, Maple Grove, MN.
Register Receipt Offers are operated by Catalina Marketing, St. Petersburg, FL.
In-store radio network is operated by In-Store Audio Network, Salt Lake City, UT.
An on-pack coupon program linking brands with private-label products is operated by AMI In-store, Framingham, MA.
Store Formats/Growth
Store Formats/Growth
In October 2023, Rite Aid filed for bankruptcy protection and has been closing underperforming stores — approximately 500 by mid 2024.
Small Format Stores
Rite Aid is opening a handful of small-format stores in rural Virginia as part of a pilot program to serve "pharmacy deserts." The stores feature a full-service pharmacy plus an assortment of of health and wellness SKUs. These stores run about 2,500 square feet, a fraction of the size of a the 13,600-square-foot average.
Stores of the Future
Rite Aid's "Stores of the Future" prototypes — based on a modern store design concept focused on whole health — bring pharmacists out from behind the counter and into the open, enabling them to be easily accessible to offer advice to customers. Featuring an airy interior filled with vibrant colors, modern signage and an enhanced merchandise assortment, Rite Aid "Stores of the Future" are modern neighborhood destinations intended to inspire clean, healthy living.
Rite Aid also has beauty ambassadors in select stores to offer guidance on the company's updated, on-trend beauty product mix, which includes a shift toward natural, chemical-free options. According to the retailer, the result is a store that feels like a spa-like destination for products that customers can feel good and get excited about.
The average Rite Aid store size is 13,600 square feet, but stores in the eastern part of the U.S. average 11,100 square feet with 8,900 square feet of selling space, and stores in the western part of the U.S. average 19,400 square feet with 14,900 square feet of selling space.
More than half of stores (1,405) are freestanding and include a drive-thru pharmacy (1,310). As of early 2023, 68.5%, or 1,581, of Rite Aid stores operated a GNC store-within-a-store.
The Stores of the Future prototypes are an update on the “Wellness” format Rite Aid introduced in spring of 2011 and continued to refine with its “Genuine Wellbeing” format introduced in 2012. As of 2017, Rite Aid had remodeled over 2,400 store locations to the Wellness formats (see below for details), with almost 50% of stores sporting the new format. Remodeled stores performed significantly better in front-end sales than the chain’s older, “Customer World” format.
In 2017, Rite Aid announced that a proposed merger with Walgreens had been cancelled. Instead the rival drugstore chain instead purchased 1,932 stores from Rite Aid to be converted to the Walgreens banner.
Wellness
Wellness stores feature an expanded assortment of wellness-related items and a greater emphasis on customer service and clinical pharmacy services such as immunizations and diabetes care.
Wellness stores are staffed with Wellness Ambassadors, who provide an added level of customer service.
Other elements of Wellness stores include:
- Enlarged sections for organic and gluten-free food and beverages, homeopathic medicine and personal care products.
- Enlarged cold beverage area and refrigerated displays for fitness beverages.
- “His” and “her” areas for personal care items.
- Enhanced cosmetics and fragrances presentation.
- A women’s wellness section.
Genuine Wellbeing
Genuine Wellbeing stores keep many of the same design elements as earlier Wellness stores but have a warmer look with faux wood accents on displays and softer lighting. The signage package uses a brighter color palette of greens, reds and blues. Large, circular ceiling signs identify each section of the store, such as beauty, food, home care, wellness and seasonal.
Genuine Wellbeing stores also retail:
- Lighted fixtures and brand headers across the beauty department.
- Vision Center, an interactive kiosk that allows customers to order prescription glasses and contact lenses online for home delivery, along with a selection of sample eyeglass frames.
- Diabetic Diagnostic Center, a one-stop shop for people with diabetes, including a hands-on display of glucose meters, test strips, sugar-free foods and foot care products.
- Men’s Grooming, an expanded area with a Unilever Axe brand display that lets shoppers see a new look using an iPad.
- A nail bar that showcases top brands and the latest polish colors.
- An enhanced hair care aisle that lets shoppers examine hair accessories before purchase.
- A grab-and-go food cooler at the front of the store stocking milk, eggs and yogurt.
- A private consultation room where customers can speak with a Rite Aid pharmacist. The room also has a computer to access Rite Aid Online Care, an interactive service that allows customers to consult with pharmacists about medications.
- Upscale wine selections in certain locations.
- An updated exterior with wood-grain paneling and signs calling out available services, such as 24-hour pharmacy, drive-through service and a GNC department.
Rite Aid is also testing a more upscale beauty department in select Wellbeing stores. The departments feature illuminated displays and a freestanding nail bar.
Special Departments/Services
Special Departments/Services
More than 2,200 Rite Aid stores incorporate store-within-a-store vendor shops from Pittsburgh-based General Nutrition Centers Inc. The area ranges from 400 to 1,000 square feet in size and carries a wide range of vitamin and mineral supplements, personal care items, fitness products and other health-related SKUs. Rite Aid was contractually obligated to open at least 300 additional GNC stores by December 2019.
More than half of all Rite Aid stores have a drive-through pharmacy. Photo processing services are available in virtually every location. In recent years, the retailer has expanded its immunization program available through pharmacies. In fiscal 2017, pharmacists administered more than 4 million immunizations to patients.
Now Clinic Online Care services are available in nine Detroit-area pharmacies and 58 stores in the Baltimore, Boston, Philadelphia and Pittsburgh markets. Developed in conjunction with Optum Health, the virtual clinics provide patients with real-time online access to qualified medical care. Terminals allow shoppers to have private, one-on-one consultations via secure video, chat or phone with doctors who are able to discuss symptoms, provide guidance, diagnose issues and prescribe certain medications when appropriate. Customers can also interact with Optum nurses, who are able to address a range of healthcare needs and assist in identifying appropriate provider options for care.
In April 2014, Rite Aid acquired Houston, TX-based RediClinic. As of February 2016, the retailer operated 78 RediClinic locations within select Rite Aids in the Philadelphia, Seattle, Baltimore, Washington, DC, and Texas markets. The clinics are staffed by nurse practioners and physician's assistants who can diagnose and treat over 30 medical conditions and also provide a range of preventative screenings and services.
Over 4,000 Rite Aid stores offer personal health kiosks that monitor blood pressure. The kiosks are operated by Chicago-based Higi.
Flexible Payment Options
Rite Aid has a partnership with BNPL solution provider Afterpay to offer a flexible payment option via the Afterpay mobile app to pay in four interest-free installments at more than 2,000 Rite Aid locations.
Customer Segments
Customer Segments
Rite Aid is currently working to develop a multidimensional segmentation model based on data collected from its Wellness+ loyalty program, which has amassed more than 30 million active members and 2 billion transactions since its creation in 2010.
The segmentation will combine past shopper behavior, price sensitivity, product attributes, and historical transaction data to help drive more personalized marketing efforts via one-to-one channels including email, direct mail and register receipts.
Rite Aid also targets shoppers based on their particular health needs in an effort to boost loyalty and become a valued partner in their health care. The retailer has extended its Wellness+ platform to address the needs of specific groups:
- Wellness65+ for seniors (1.6 million members as of March 2014)
- Wellness+ for Diabetes
- Wellness+ Allergies
Similarly, Rite Aid continues to develop and promote programs that cater to the health needs of other specific groups, such as pregnant mothers (Text4Baby service), smokers trying to quit and dieters.
Internet Marketing
Internet Marketing Strategy
A redesigned website that debuted in March 2013 offers a more personalized experience and enhanced e-commerce capabilities. Rite Aid views its website as a key driver of in-store traffic, as the company’s own internal research showed that 80% of visitors to riteaid.com also visited a store.
The site’s “Load2Card” digital coupon section, in particular, helps to drive traffic to stores by enabling shoppers to redeem “clipped” digital coupons by checking out with their Wellness+ cards. Available under the “Deals” tab of the site’s top navigation, Load2Card displays digital coupons for Rite Aid products that are published on sites such as Coupons.com, Redplum.com and AOL’s Shortcuts.com. Rite Aid partners with Winston-Salem, NC-based Inmar Inc. to handle the electronic validation and clearing of the coupons.
The redesigned site offers no banner advertising opportunities for brands. A large carousel ad on the home page touts the retailer’s own services (prescription refills, immunizations, Wellness+, Load2Card digital coupon service), seasonal and holiday promotions (allergy relief, Mother’s Day gifts), and occasional account-specific contests and promotions. High-profile product launches occasionally receive panels in the rotation, including Pfizer’s Nexium 24HR in 2014.
The site’s top-level navigation includes:
- A “Wellness+” tab details the retailer’s various Wellness+ loyalty programs (see Loyalty Programs). Users can manage their accounts, redeem points and sign up for additional services such as Load2Card. The Wellness+ dashboard offers savings summaries, integration with a member’s pharmacy profile, targeted offers and product recommendations.
- A “Pharmacy” tab allows users to transfer and manage prescriptions, chat with pharmacists (Wellness+ members only), and browse a variety of educational resources spanning health tips, insurance coverage, smoking cessation, and allergy care.
- A “Shop” tab and “My cart” button links to the site’s e-commerce functionality. (See “E-commerce strategy.”)
- A “Photo” tab allows users to upload photos from Facebook, Dropbox and other services, order prints and create custom gift books and photo cards.
- A “Deals” tab links to the retailer’s weekly circular, printable coupons, Load2Card digital coupon service and “Video Values,” a service powered by San-Francisco-based AdPerk that allows shoppers to earn printable coupons for watching a wide range of manufacturer-specific videos.
Other panels below the carousel link to personalized pharmacy services, the user’s Wellness+ dashboard, “featured deals” and wellness+ rewards for the online store and a link to the retailer's Weekly Ad.
Rite Aid operates dedicated microsites to host various seasonal contests and promotions. Among them:
- Nail Extravaganza from Rite Aid (www.riteaidnails.com) hosts the annual contest to design “nail art”
- Eye Extravaganza from Rite Aid (eyes.riteaid.com) stages three separate contests and sweepstakes to design eye color looks
Rite Aid sends out a number of regular email blasts:
- The Wellness+ monthly newsletter offers health tips and links to related products on Rite Aid’s e-commerce microsite. Often focused on seasonal themes (sunburn care, allergy season), the emails link to a repository of Wellness+ articles on Rite Aid’s website.
- The “Rite Aid Weekly Offers” newsletter features a panel summarizing +UP savings totals for the week and links to the weekly circular. Four additional panels highlight featured +UP rewards offers for the week. Brands feature prominently in the mix. Newsletter links all lead to a special “Weekly Offers” tab (riteaidoffers.com) on Rite Aid’s site.
- Weekly “Rite Aid Photo Offers” emails dangle discounts on photo processing and related products.
Mobile Marketing
Mobile Marketing Strategy
Mobile Application
Rite Aid releases quarterly updates for its mobile app, which is available on both the Android and iPhone platforms. The app lets customers:
- order refills by scanning prescription bottles.
- transfer prescriptions.
- locate nearby Rite Aid stores.
- manage their wellness + account and Load2Card offers.
- access the weekly circular.
- Upload and order photo prints.
- “Shop Online” via a link to a mobile-optimized version of Rite Aid’s ecommerce site.
Mobile Website
Rite Aid’s mobile-optimized website duplicates the functions of the app, but the store locator requires users to enter zip codes to find stores rather than relying upon mobile geolocation services.
The retailer began accepting mobile payments in 2015, including Apple Pay and Google Wallet. Additionally, Rite Aid accepts tap and pay credit and debit cards. The company has also announced that it will accept Google's forthcoming Android Pay.
Social Media
Social Media Strategy
Facebook: 794.3K followers (as of April 2023)
Rite Aid posts updates nearly every day to spotlight national and private label products, often under a seasonal or holiday theme. Updates also encourage participation in cause marketing campaigns, promote periodic sweepstakes and other promotions, and link to deals on Rite Aid’s e-commerce site.
Twitter: 81K followers (as of April 2023)
Rite Aid posts to Twitter several times a month. Most activity mirrors its Facebook page. It also updates on its cause marketing activity and promotions, and highlights seasonal offerings and services (like flu shots).
Instagram: 59.9K followers (as of April 2023)
Rite Aid's Instagram account closely mirrors its Facebook and Twitter activity, focusing on seasonal promotions that highlight private label and national brands.
Pinterest: 3.5K followers (as of April 2023)
Rite Aid has several pins and boards that tie in to its product offerings and services (Cold, Flu & Allergy Support; National Lipstick Day). Many are shoppable, leading to riteaid.com's products pages.
YouTube: 4.7K subscribers (as of April 2023)
Rite Aid’s YouTube channel features more than 80 videos — new ones are added sporadically — including recent TV spots and videos that tout the retailer's pharmacy services and share wellness tips.
E-Commerce
E-Commerce Strategy
Rite Aid operates a dedicated e-commerce microsite accessible from the “Shop” tab on riteaid.com. The site offers a wide range of health and beauty aids, OTC drugs, private-label products, household items, gifts and seasonal items.
Panels under the “Shop” menu call out exclusive “Online Deals,” featured products from national brands, seasonal items, and product categories such as vision care and beauty.
Several product category pages (personal care, baby, vitamins) contain a “Top Deals” panel highlighting national brands eligible for current deals and wellness+ rewards points. Additionally, every brand available for sale on riteaid.com has its own dedicated brand page.
The site’s analytics engine recommends products based on the user’s current and past shopping behaviors. Checkout is managed through a Rite Aid account or can be linked to a user’s Amazon account, with free standard shipping offered on orders over $35. The retailer periodically offers additional discounts available online with promo codes, which are communicated through banner ads on the e-commerce site and in weekly circulars.
Delivery and Pick-Up
In January 2024, Rite Aid launched same-day delivery service, available to customers within 15 miles of select store locations. RiteAid.com shoppers must set their store in the store locator, and a "delivery" filter will appear in the menu above product results if delivery is an option.
Shoppers can opt for same-day delivery at checkout, and receive their order within three hours so long as it's placed before a store's local cutoff time (usually two or three hours prior to closing). Otherwise it's next-day delivery.
They'll also get real-time tracking and delivery notifications. A Rite Aid Rewards membership isn't needed.
Same-day delivery fees begin at $5.99, and there is a $25 order minimum.
Prescriptions are not eligible under the same-day option; those orders are fulfilled via Rite Aid's RX Delivery program.
Buy online, pick-up in store is also an option.
Fulfillment Partners
- Shipt: Powers same-day delivery of more than 20,000 products, including cold and flu medicines, vitamins, beauty staples and snacks. Customers can order from participating Rite Aid locations through the Shipt marketplace, with delivery to their door in as soon as one hour. The 2021 rollout followed a successful pilot.
- Uber Eats: Powers on-demand delivery from all of Rite Aid’s stores. In 2024, the retailer expanded its partnership with Uber Eats to include alcohol delivery from participating stores in California, Idaho, Michigan, New York, Ohio, Oregon, Virginia and Washington.
- DoorDash: Powers same-day delivery of 24,000-plus nonprescription health, convenience and wellness items from participating Rite Aid stores, with average delivery in under an hour.
- Instacart: Powers home delivery from participating Rite Aid stores. The retailer is also expanding its partnership with Instacart to offer EBT SNAP online payments at more than 1,400 Rite Aid and Bartell Drugs locations nationwide.
- Amazon: The e-tailer is piloting a program that gives Prime members two-hour delivery from Rite Aids in select zip codes in Newark, New Jersey and Burbank, California.
- Grubhub: Participating locations in 16 states are in the Grubhub Marketplace for delivery. Grubhub+ members pay $0 for delivery on orders of at least $12.
Circulars
Circulars and Publications
Rite Aid distributes weekly circulars with Sunday-Saturday sale dates. The retailer has transitioned to a digital circular, which includes interactive features that allow consumers to review deals at their store of choice, shop the riteaid.com website, or add products to a shopping list.
Circulars used to run approximately 12 pages. In the digital-only format the same number of products are featured, but are more spaced out. There is a heavy focus on beauty products, OTC items and seasonal merchandise.
Products offering additional Rite Aid Rewards (see “Loyalty Programs”) receive prominent placement throughout. BOGO deals are also common. The retailer often runs seasonal promotions.
Circulars include plentiful brand activity, ranging from account-specific sweepstakes to multi-category promotions. Manufacturer coupons sprinkled throughout typically require Rite Aid Rewards membership for redemption, which people can "clip" and add to their Rewards account.
Other features group related products in support of Rite Aid’s various health initiatives, such as allergy relief or vaccinations. Features sometimes vary by market to reflect regional preferences. Select markets, for example, run promotions for wine, beer and liquor.
Loyalty Programs
Loyalty Programs
Rite Aid Rewards
The retailer's loyalty program is points-based, where consumers can earn rewards through everyday purchases, prescriptions, personalized shopping challenges, and members-only promotions.
Consumers can track and manage points through their digital account on riteaid.com or on the Rite Aid app. Every qualifying dollar spent earns 10 points; after 1,000 points that amount can be redeemed for $2 Rite Aid Rewards BonusCash, or members can opt to let them accumulate. Consumers can also add coupons to their account to earn extra BonusCash — $15 in rewards for a $50 purchase, for example.
Rite Aid Rewards 65+
Formerly wellness65+, this program is for members ages 65 and older. They receive standard standard Rite Aid Rewards benefits. Plus on the first Wednesday of the month they can earn five times the points on qualifying purchases.
Private Label
Private Label
Rite Aid has thousands of private label items as it continues to rely on them as a driver of front-end revenue. Rite Aid execs have said that its own-brand program is one of the initiatives that supports efforts to create tailored offerings specific to each local market.
The retailer has identified private labels as a key component of its growth strategy and has been working to increase sales by expanding product lines and enhancing marketing efforts. Previous strategies have included entering new categories, enhancing seasonal programs and improving the in-stock position with private brand suppliers.
Its current portfolio includes:
- Rite Aid: A national brand equivalent (NBE) comprising sub-brands Rite Aid Pantry (food), Renewal (beauty), Home (general merchandise), Tugaboos (baby), and Pharmacy.
- Ryshi: Launched in 2023, the collection includes clean beauty and personal care items from vegan lashes to sunscreen and body wash, all priced less than $20. Eventually the line will encompass more than 300 products.
- Thrifty: Acquired by Rite Aid in 1996, a popular premium ice cream brand.
- Ello Market: Pantry items, snacks and treats. The line spans three categories: Core, Better for You, and Indulgent.
- Pawtown: Pet toys, treats and accessories.
- Simplify: Introduced in 2010 as a way to revamp its entire own-brand program with a new look and feel geared toward value-driven shoppers, Simplify spans bathroom tissue, paper towels, paper plates and comparable items.
- Big Win: Cleaning and household supplies as well as some snack options.
- Daylogic: A line of personal care and beauty products.
Cause/Community Programs
Cause/Community Programs
Since 2001, Rite Aid Healthy Futures (formerly The Rite Aid Foundation) has awarded more than $17 million in grants to nonprofit organizations and activities dedicated to creating stronger and healthier communities in areas the retailer serves. The program does that through three stated initiatives: empowering children, connecting communities and strengthening cities. In 2023, the Connecting Communities grant program awarded $4.6 million, including toward food-security programs.
In 2023, it also committed $1.25 million in grants to six youth mental health organizations, including Active Minds, The Trevor Project, The Steve Fund, The JED Foundation, Boys & Girls Clubs of America, and McLean Hospital in Boston. The retailer also committed $1 million to grow its partnership with Girls on the Run and help its inclusion, diversity and equity work.
In August 2013, the foundation launched Rite Aid’s KidCents program, which funds Rite Aid Healthy Futures. KidCents encourages rewards members to round up their receipts to the nearest dollar so the difference can be donated to organizations providing health, medical, educational or mentoring services to children. Business partners and vendors, including major CPG brands, also contribute. By August 2022 the organization had raised more than $100 million to benefit Children’s Miracle Network Hospitals and other charities.
In 2022, more than $4 million in neighborhood grants were awarded to more than 400 nonprofit organizations in the retailer's 17-state footprint.
The retailer offers a "Veteran Appreciation Days" promotion from Nov. 10-12, where loyalty program customers with a valid military ID or proof of service can get a 15% discount on regular-priced items.
Advertising Strategy
Advertising Strategy
Tagline: "It Means More"
In February 2024, Rite Aid launched a new "It Means More" ad. The first spot highlights the retailer's commitment to its customers, featuring employees helping folks through various day-to-day dilemmas such as masking a young girl's overzealous approach to a DIY haircut (with a headband, bought at Rite Aid), or a mom finding she's run out of dishwasher detergent (a dash to the retailer means a quick refill and an impulse treat). The inaugural 30-second spot is also broken down into smaller 15-second bits, reinforcing the theme of "more": Rite Aid offers more than convenience, has more than what you need, is more than just a pharmacy, it means more, and you/the customer mean more.
The ads can be found on Rite Aid's YouTube channel.
Solution Providers
Solution Providers
- Agency of Record: Havas North America
- Event Marketing: Interactions, San Diego, California
- Merchandising, Sampling Events: Crossmark, Plano, Texas
- Antibacterial dispensing wellness kiosks: Terraboost Media, Miami Beach, Florida
- POS advertising: Neptune Retail Solutions, Jersey City, New Jersey
- Digital audio out-of-home advertising: InStore Audio Network, Princeton, New Jersey
- Customer data analysis partner: Dunnhumby, London, U.K.
- Supplier Collaboration: NielsonIQ, Chicago
- On-site cloud computing capabilities for the pharmacies, and retail search solutions for Rite Aid's website and app: Google Cloud, Sunnyvale, California
- BlueDolphin enterprise SaaS to map business systems: ValueBlue, New York City
Sponsorships
Sponsorships
Rite Aid does not have any sponsorship agreements with professional sports organizations or teams, although it welcomes programs that leverage the official affiliations of CPG vendors. Examples include Procter & Gamble’s sponsorship of the 2012 Olympic Games and Unilever’s NCAA Basketball sponsorship.
Rite Aid does, however, sponsor smaller regional events that align with its focus on health and wellness. Most notably, the chain has sponsored the Cleveland Marathon since 2003 and supported other races as part of its 50th Anniversary ‘‘Acts of Wellness’’ community events across the country.
Philadelphia Flyers Partnership
In December 2023, Rite Aid announced a partnership with the Philadelphia Flyers. The retailer will provide digital signage throughout the Wells Fargo Center during NHL games and lend a digital presence to the team's website and newsletter. Rite Aid also has several giveaways planned in early 2024, including autographed gear, tickets and VIP experiences.
Marketing Expenditures
Marketing Expenditures
Rite Aid’s advertising expenses, net of specific vendor advertising allowances, were $146.1 million for fiscal 2022, $122.7 million for fiscal 2021, $142.1 million for fiscal 2020, $147.5 million for fiscal 2019 and $161.8 million for fiscal 2018.
For 2022 the retailer continued to develop customers' omnichannel experiences as it took a holistic approach to managing its media mix while continuing to direct its efforts toward a digital-first approach. The advertising and marketing budget included digital marketing in support of pharmacy and front-end sales, the wellness+ program and customer relationship marketing in-store.
![Rite Aid](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/rite_aid_logo2.jpg)
Rite Aid Promotional Calendar
A roundup of seasonal promotions.
January
- New Year's: Offers advice for keeping resolutions, like quitting smoking, exercising regularly, managing stress, and eating healthier.
- Valentine’s Day: Activity kicks off early in January; P-O-P materials, circulars and digital activity spotlight confectionery, greeting cards, and other gift items.
- Super Bowl: Game-day snacks and other items for a tailgate or party.
- Cold & Flu: Promotes flu shots and relevant products throughout the season.
February
- Heart Health Month: Circular and digital activity promotes heart health (and warning signs of potential heart disease) and savings on heart-healthy items and supplements.
- Black History Month: Highlighting Black-owned and Black-founded brands.
- Valentine's Day
- Super Bowl
- Cold & Flu
March
- Easter: Focus on confectionery and novelties; also pulls in garden gadgets and yard toys as a nod to spring in general.
- Allergy Relief: Incentives supported by vendors continue into May; Johnson & Johnson plays lead role through a continuity program supported by custom displays.
- Spring Cleaning: Social media touts cleaning materials, including Unilever and SC Johnson SKUs.
April
- Gardening: Touts products, including private label, for indoor and outdoor projects.
- Beauty is in Bloom: Three-week-long event features in-store and online deals on beauty SKUs, opportunities to earn BonusCash, and a chance to win a shopping spree.
- Stress Awareness Month: Pharmacists gave customers tips and tools to reduce stress during the month.
- Allergy Relief
- National Prescription Drug Take Back Day: Encourages people to safely dispose of unused medications.
- National Pet Month: Social media touts private label products.
- Autism Awareness Month: For 2023, the retailer teamed with PATH to raise funds through a limited-edition bottle.
- Earth Day/Month
- Easter
May
- Mother’s Day: Rewards for confectionery, gift cards and other giftables.
- Women's Health Month: Advice and screening reminders.
- Cinco de Mayo: Snack and party suggestions.
- Memorial Day/Summer: A spotlight on outdoor cookware, lawn furniture and other seasonal products; summer-long deals on food and personal care items. A chance to earn bonus cash when buying qualifying products.
- Asian American & Pacific Islander Heritage Month
- Allergy Relief
- Beauty is in Bloom
June
- Father’s Day: Spotlight on gifts for Dad including greeting and gift cards, grilling accessories and more.
- Pride Month
- Summer
July
- 4th of July: Circular and digital activity highlights a sale as well as online exclusive savings.
- Clean Beauty Day: Touts clean beauty options both online and in-store.
- National Ice Cream Month: For 2022 and 2023, the retailer held a giveaway for a year of its private label Thrifty ice cream.
- National Lipstick Day
- Summer
- Sun Protection
August
- Back to School: Bulked-up inventory of college needs including TVs, computer accessories and dorm furnishings; basic school supplies and other packaged goods sales are bolstered with +UP Rewards incentives.
- Cold & Flu: Long-term push for in-store immunizations and relevant OTC products gets rolling.
- Labor Day: Party supplies, snacks and more for the upcoming long weekend.
September
- 60th Anniversary: For the retailer's 60th anniversary in 2022, Rite Aid held rewards points giveaways.
- Pain Awareness Month: Advice and products for alleviating pain.
- Hispanic Heritage Month: Recognizing culture, history and achievements of customers and employees.
- Fall Beauty Event: Deals and promotions on beauty products from nationwide brands and Rite Aid's own brands. Product suggestions for launching into winter skin care routines, featuring products such as L'Oreal's CeraVe and Beiersdorf's Aquaphor.
- Fall: Seasonal flavors and decor.
- Back to School
- Cold & Flu
October
- Halloween: Seasonal spotlight on confectionery, cosmetics and costumes, including costume ideas and fall activities.
- American Pharmacists Month: An annual, month-long "Pharmacy Champions" program.
- National Dental Hygiene Month: Encourages dental health, backed by products from Procter & Gamble, Colgate Palmolive and other brands.
- Fall Beauty Event
- National Prescription Drug Take Back Day
- Cold & Flu
November
- Thanksgiving: Runs a Black Friday savings event in stores and online, supported by a dedicated circular. Cyber Week offers online-only savings.
- Holiday: Co-mingles themed content with a spotlight on brands from various seasonal categories. Aims to be a gift destination for the whole family. Circular activity, in-store P-O-P and digital activity supports.
- Diabetes Awareness Month: Offers educational resources and supplies to help maintain diabetes.
- Giving Tuesday: Retailer shows support for its Rite Aid Health Futures initiative.
- Veterans Day
- Cold & Flu
December
- Holiday: Gift ideas, including suggestions online for various recipients and under various price points. In 2023, Rite Aid released an Acquaintance Gift Guide, with suggestions for those hard-to-shop-for individuals, such as teachers, neighbors and the aunt you see once a year. The retailer also suggests last-minute SKUs. After Christmas, social media touts post-holiday clearance.
- Cold & Flu