General Merchandise/HBC

Rite Aid Meets Save-A-Lot

Testing new co-branded drug/small-format grocery stores in 10 locations
CAMP HILL, Pa. -- Rite Aid Corp. and Save-A-Lot have announced that Rite Aid has entered into a licensing agreement with Save-A-Lot to add the discount, limited-assortment grocery store concept to Rite Aid's 10 existing stores in the Greenville, S.C., market. The stores will be co-branded Save-A-Lot Food Stores/Rite Aid Pharmacy and will continue to be owned and operated by Rite Aid.

Rite Aid will continue to offer health and beauty products, including its private-brand items, in these stores along with Save-A-Lot grocery products. The Rite Aid pharmacies will operate as [image-nocss] usual.

"We believe this new co-branded concept meets the needs of today's consumers, who continue to search for value, quality and convenience, and we're excited about the chance to offer our customers high-quality grocery products including fresh meats and farm-fresh produce at great prices," said Ken Martindale, Rite Aid COO. "We chose to add Save-A-Lot because of its strong sales record, wide selection of attractively priced exclusive brands and its solid reputation for discount grocery. Plus it's a model that's efficient for Rite Aid associates to operate."

Martindale added that the 10-store test is part of the company's segmentation strategy. Since early 2009, Rite Aid has been transitioning from operating all of its stores the same to identifying unique opportunities among like groups of stores.

"This is one of those unique opportunities, and we're excited about the test," Martindale said.

"This new format, featuring aspects of both traditional Rite Aid pharmacies and Save-A-Lot food stores, will provide added convenience and value to consumers in the Greenville, SC, area," said Bill Shaner, Save-A-Lot president and CEO. "This relationship is an opportunity for Save-A-Lot and Rite Aid to test a co-branding strategy and the integration of Rite Aid pharmacies into our traditional Save-A-Lot grocery store model."

The 10 stores, which are located in Greenville, Easley, Greer, Simpsonville and Travelers Rest, will remain open as they begin converting to the new format this month. Rite Aid said it has designed the remodel process to make sure the pharmacy remains easily accessible, and Rite Aid's pharmacy teams can continue to offer the same high level of service Greenville residents have come to expect. The remodels are expected to be completed in October.

Camp Hill, Pa.-based Rite Aid is one of the nation's leading drugstore chains with nearly 4,800 stores in 31 states and the District of Columbia with fiscal 2010 revenues of $25.7 billion.

St. Louis-based Save-A-Lot, a SUPERVALU company, is one of the nation's leading hard-discount, carefully selected assortment grocery chains, operating 1,200 stores in 39 states from Maine to California. Serving more than five million shoppers each week, Save-A-Lot offers a savings of up to 40% on groceries when compared to conventional stores. Customers can get savings on exclusive Save-A-Lot brands and national brands, plus fresh meat and farm-fresh fruits, vegetables and dairy, along with the most popular grocery and household items.

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