Rite Aid 2015 Annual Report Download - page 7

year revenues of approximately $5 billion. This acquisition represents a key part of our strategy to
become a retail healthcare company, allowing Rite Aid to create a compelling pharmacy offering across
retail, specialty and mail-order channels; deliver cost-effective solutions to employers and health plans;
and drive growth while creating long-term value for our shareholders.
In addition to its transparent and traditional PBM offerings through the EnvisionRx and MedTrak
PBMs, EnvisionRx also offers fully integrated mail-order and specialty pharmacy services through
Orchard Pharmaceutical Services. And through its Envision Insurance Company, EnvisionRx also serves
one of the fastest-growing segments in healthcare: seniors enrolled in Medicare Part D. When
combined with Rite Aid’s retail platform, this comprehensive suite of services will allow Rite Aid to
provide additional value and broader choice to customers, patients and payors and will better position
Rite Aid to succeed in today’s evolving healthcare marketplace. The transaction is expected to close on
or before September, 2015, subject to regulatory approvals and customary closing conditions. Upon
closing, EnvisionRx will operate as a 100 percent owned subsidiary.
wellness+—Since its launch in April of 2010, our free wellness+ program has provided customers
and patients with the opportunity to earn significant discounts and wellness rewards in return for being
loyal Rite Aid shoppers. Enrolled members earn rewards based on the accumulation of points for
certain front-end and prescription purchases. The program has been well received by Rite Aid
customers and continues to provide significant value to members earning enough points to reach the
Gold, Silver or Bronze tier levels. Gold members, for example, receive a tiered discount of 20-percent
off most items in the store for an entire year. In addition, all wellness+ members receive exclusive sale
pricing and wellness rewards.
Participation in the wellness+ program and wellness+ card usage continues to be strong. As of
February 28, 2015, 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 2015,
wellness+ members accounted for 78% of front-end sales and 67% of prescriptions filled.
We have expanded wellness+ in recent years by launching both wellness+ for diabetes and
wellness65+ for seniors. In fiscal 2016, we will significantly enhance our program by partnering with
other highly respected brands such as AT&T, ExxonMobil, Macy’s, Nationwide, Direct Energy, Hulu
and American Express to launch Plenti, the first coalition loyalty program in the U.S.
Plenti, which at Rite Aid will be incorporated into wellness+ to create wellness+ with Plenti, will
let consumers earn and use points across a range of well-known brands in different industries.
Through wellness+ with Plenti, our customers can use one card and earn two kinds of points.
Members will continue to earn wellness+ points toward various benefits at Rite Aid including discounts
of up to 20% off storewide, exclusive sale prices and 24⁄7 access to a pharmacist.
When the program launches in May, +UP Rewards will become Plenti points. Members will be
able to earn Plenti points whenever they make qualifying purchases at Rite Aid and all other Plenti
partners. Plenti points will offer the same savings as +UP Rewards and provide even more value to
customers since they can be used for savings at Rite Aid as well as certain other Plenti partners
including Exxon and Mobil and Macy’s. Customers have at least two years to use their Plenti points.
We believe that this compelling enhancement will significantly increase the appeal of our already
successful loyalty program, creating more reasons for new and existing customers to shop at Rite Aid
more often.
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 2015, we continued to strengthen Rite Aid as a wellness
destination by completing additional Wellness store remodels. As a result, our total number of Wellness
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