Rite Aid 2014 Annual Report Download - page 6

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Gold, Silver or Bronze tier levels. In addition to tiered discounts and wellness rewards, members
receive exclusive sale pricing and the opportunity to earn Plus Up Rewards, which are offers on certain
items featured in our weekly circular that provide additional savings during return shopping trips.
Participation in the wellness+ program and wellness+ card usage continues to be strong. As of
March 1, 2014, the wellness+ program had nearly 25 million active members, which we define as
members who have used their wellness+ card at least twice over the previous 26 weeks. In fiscal 2014,
wellness+ members accounted for 78% of front-end sales and 70% of prescriptions filled. In addition,
our number of Gold and Silver members—Rite Aid’s most valuable and satisfied customers—continues
to increase.
We introduced the biggest extension of wellness+ since its inception by successfully launching
wellness65+ for seniors in June of 2013. Enrolled seniors can also become ‘‘Gold Members for a Day’’
and receive a 20% discount during special ‘‘wellness65+ Wednesday’’ events held each month at every
Rite Aid store. These benefits are designed to give seniors a strong incentive to visit their local Rite
Aid, get to know our store and pharmacy teams and learn more about the various products, services
and advice Rite Aid has to offer. As of March 1, 2014, more than 1.6 million seniors were enrolled in
the program. In fiscal 2014, we continued efforts to form stronger relationships with our best customers
by leveraging program data to deliver more personalized and targeted offers.
Heading forward, we will continue to look for new and innovative ways to further enhance our
highly popular customer loyalty program.
Wellness Store Remodels—In fiscal 2014, we continued to strengthen Rite Aid as a wellness
destination by converting 405 stores to our Wellness Store format, which brought our total number of
Wellness stores to 1,215 by the end of the fiscal year. As a result, more than a quarter of all Rite Aid
stores are now Wellness stores.
In addition to improved interior design, expanded clinical pharmacy services, innovative
merchandising and new wellness product offerings, these stores are staffed with our unique Wellness
Ambassadors, who serve as a bridge from the front-end of our stores to the pharmacy and provide an
added level of customer service. Our customers have responded favorably to this unique store format.
Our Wellness stores are outperforming the rest of our chain in terms of both front-end same-store sales
and same-store prescription count.
We plan to complete an additional 450 Wellness remodels in fiscal 2015. We believe these
remodels are a cost-effective way to strengthen our store base, grow sales and offer our customers an
engaging wellness experience.
As we continue our store remodeling efforts, we will also begin setting the stage to complete store
relocations and build net new stores over the next few years, allowing us to further expand the reach of
our Wellness store format.
Expanded Healthcare Services—In fiscal 2014, we continued to expand the role of our Rite Aid
pharmacists in delivering wellness services that go beyond simply filling prescriptions. A key area of
focus has been our immunizations program, which has grown significantly in recent years. In fiscal
2014, our pharmacists administered more than 2.8 million flu shots compared to nearly 2.4 million the
previous year, an increase of more than 450,000. We also increased our number of vaccinations that
protect against other conditions such as shingles, pneumonia and whooping cough by five percent over
last year. Immunizations will continue to be a key area of focus in fiscal 2015.
We are also piloting an innovative program named Rite Aid Health Alliance that positions Rite
Aid to partner with local physicians and support patients with chronic conditions in achieving positive
health outcomes. Through Rite Aid Health Alliance, doctors recommend our program to patients with
one or more chronic conditions such as congestive heart failure, COPD, high cholesterol and diabetes.
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