Rite Aid 2012 Annual Report Download - page 7

Products and Services
Sales of prescription drugs represented approximately 68.1%, 67.8%, and 67.9% of our total sales
in fiscal years 2012, 2011 and 2010, respectively. In fiscal years 2012, 2011 and 2010, prescription drug
sales were $17.7 billion, $17.0 billion, and $17.4 billion, respectively. See ‘‘Item 7 Management’s
Discussion and Analysis of Financial Condition and Results of Operations’’ and our consolidated
financial statements.
We carry a full assortment of non-prescription, or front end products. The types and number of
front end products in each store vary, and selections are based on customer needs and preferences and
available space. No single front end product category contributed significantly to our sales during fiscal
2012. Our principal classes of products in fiscal 2012 were the following:
Percentage of
Product Class Sales
Prescription drugs ........................................ 68.1%
Over-the-counter medications and personal care .................. 9.8%
Health and beauty aids .................................... 5.2%
General merchandise and other .............................. 16.9%
We offer a wide variety of products under our private brands, which contributed approximately
17.0% of our front end sales in the categories where private brand products were offered in fiscal 2012.
We intend to increase the number of private brand products during fiscal 2013, many of which will be
in our price fighter brand, Simplify. We believe that our customers find these products to be of high
quality and provide great value.
We have a strategic alliance with GNC under which we have opened over 2,100 GNC ‘‘stores-
within-Rite Aid-stores’’ as of March 3, 2012 and a contractual commitment to open additional stores by
December 2014. We incorporate the GNC store-within-Rite Aid-store concept into many of our new
and relocated stores and into many of our Wellness remodels. GNC is a leading nationwide retailer of
vitamin and mineral supplements, personal care, fitness and other health-related products.
Technology
All of our stores are integrated into a common information system, which enables our customers
to fill or refill prescriptions in any of our stores throughout the country, reduces chances of adverse
drug interactions, and enables our pharmacists to fill prescriptions more accurately and efficiently. This
system can be expanded to accommodate new stores. Our customers may also order prescription refills
over the Internet through www.riteaid.com, or over the phone through our telephonic automated refill
systems for pick up at a Rite Aid store. We have automated pharmacy dispensing units in high volume
stores, which are linked to our pharmacists’ computers that fill and label prescription drug orders. The
efficiency of these units allows our pharmacists to spend more time consulting with our customers.
Additionally, each of our stores employs point-of-sale technology that supports sales analysis and
recognition of customer trends. This same point-of-sale technology facilitates the maintenance of
perpetual inventory records which, together with our sales analysis, drives our automated inventory
replenishment process.
We continue to embrace technology as a way to enhance the customer experience. We completed
the development of our new mobile app, which is now available for download for both the Android and
iPhone platforms. This free app allows our customers to use their smartphones to order refills by
scanning their prescription bottle, manage their wellness + account, access the weekly circular to view
sale items and locate a nearby Rite Aid store using GPS.
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