News

RiteAid PL Redesign Stands Out in a Tough Quarter

July 5, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

Rite Aid’s private label is a beacon of growth in the company’s fiscal 2012 first quarter which saw overall earnings fall and sales remain stagnant, company executives say.

 

Rollout of the company's new private brand architecture is anticipated to bring growth to the Camp Hill, Pa.-based drug store retailer's overall sales, the estimate.

 

"We continue to invest in private label," John Standley, chief executive officer, president and director of Rite Aid, said in a prepared statement as the company released its earnings in late June. "We've got a redesign of our brand architecture that's rolling out during this year. We've got a lot of new packaging in the store. We've done a lot to reposition it from a pricing and promotional perspective. And so I think it's going to continue to gain traction and grow as we go forward."

 

The company experienced private label penetration growth during the past quarter, watching it rise to 15.6 percent from 15.3 percent in the same period a year ago.

 

Total quarterly earnings fell to $63.1 million, a drop from the company's total earnings of $73.7 million in the same quarter one year ago. The reduction resulted from investments related to the Wellness + consumer loyalty program, the company says.

 

Sales for the quarter settled at $6.4 billion, flat compared to one year ago. The stunted growth in sales resulted from same store sales growth being offset by a reduction in store count, according to Standley.

 

The company already has converted 1,200 private label items to its new brand design. It plans to roll out 22 more.

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

November 2014 New Food Products

This month's new food products are Flours, crepes, lollipops, several candy items, pancakes, dip, fish, raisins, pizza, almond milk, peanut butter, and a breakfast bowl.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB November 2014 cover

November 2014

The November 2014 issue of Private Label Buyer - its last issue - includes articles about the retailer as manufacturer and OTC/healthcare items, as well as category insights on pizza and household goods. Check it out today!

Table Of Contents Subscribe

Private Label Segments

Which segment of private label will see the biggest growth over the next year?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px

PLB Marketplace