Inside This Issue - News
Rite Aid, Save-A-Lot give cobranding a try
September 20th, 2010
GREENVILLE, S.C. – Rite Aid Corp. and Supervalu Inc.’s Save-A-Lot chain will cobrand the drug chain’s 10 stores located in this market, making them drug stores with an extensive offering of groceries.
The stores will be called Save-A-Lot Food Stores/Rite Aid Pharmacy and continue to be owned and operated by Rite Aid.
"We believe this new cobranded 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," says Rite Aid chief operating officer Ken Martindale. "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."
The 10-store test is part of the drug chain’s segmentation strategy. Since early 2009 Rite Aid has been moving from operating all of its stores the same way to identifying unique opportunities among groups of similar stores. "This is one of those unique opportunities, and we’re excited about the test," Martindale says.
Bill Shaner, president and chief executive officer of Save-A-Lot, comments, "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, S.C., area. This relationship is an opportunity for Save-A-Lot and Rite Aid to test a cobranding strategy and the integration of Rite Aid pharmacies into our traditional Save-A-Lot grocery store model."
The 10 stores will stay open during the conversion, which is expected to be completed in October. The remodeling process has been designed to make sure the pharmacies remain accessible.