Rite Aid 2012 Annual Report Download - page 29

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Results of Operations
Revenue and Other Operating Data
Year Ended
March 3, February 26, February 27,
2012 2011 2010
(53 Weeks) (52 Weeks) (52 Weeks)
(Dollars in thousands)
Revenues ....................... $26,121,222 $25,214,907 $25,669,117
Revenue growth (decline) ........... 3.6% (1.8)% (2.4)%
Same store sales growth (decline) ...... 2.0% (0.7)% (0.9)%
Pharmacy sales growth (decline) ....... 1.9% (1.8)% (1.4)%
Same store pharmacy sales growth
(decline) ...................... 2.4% (0.9)% 0.1%
Pharmacy sales as a % of total sales .... 68.1% 67.8% 67.9%
Third party sales as a % of total
pharmacy sales .................. 96.5% 96.2% 96.2%
Front end sales growth (decline) ...... 0.7% (1.6)% (4.3)%
Same store front end sales growth
(decline) ...................... 1.1% (0.3)% (2.9)%
Front end sales as a % of total sales .... 31.9% 32.2% 32.1%
Store data:
Total stores (beginning of period) .... 4,714 4,780 4,901
New stores .................... — 3 17
Closed stores ................... (47) (69) (138)
Store acquisitions, net ............ — — —
Total stores (end of period) ........ 4,667 4,714 4,780
Remodeled stores ............... 279 19 8
Relocated stores ................ 15 28 41
Revenues
Fiscal 2012 compared to Fiscal 2011: The 3.6% increase in revenue was primarily driven by an
increase in same store sales and an additional week in fiscal 2012. The increase in same store sales was
driven by the positive impact of our wellness + loyalty program, our flu immunization program and
other management initiatives to increase sales and prescriptions. These increases were partially offset
due to lower pharmacy reimbursement rates and by operating fewer stores than last year. Same store
sales trends for fiscal 2012 and fiscal 2011 are described in the following paragraphs. We include in
same store sales all stores that have been open at least one year. Stores in liquidation are considered
closed. Relocation stores are not included in same store sales until one year has lapsed.
Pharmacy same store sales increased 2.4%. Pharmacy same store sales were positively impacted by
an increase of 0.9% in same store prescriptions driven in part by our immunization program, our
wellness + loyalty program and inflation on brand drugs. Same store sales were also positively
impacted by new customers resulting from the decrease in the number of pharmacies in the Express
Scripts pharmacy benefit management network, partially offset by an approximate 1.7% negative impact
from new generic introductions and lower reimbursement rates from pharmacy benefit managers and
government payors.
Front end same store sales increased 1.1% from the prior year reflecting the positive impact of our
wellness + program and other management initiatives to increase sales in the front end. The trend
improved during our fourth quarter to a same store sales increase of 1.6% due to continued growth in
our wellness + program and strong seasonal sales.
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