Rite Aid 2013 Annual Report Download - page 10
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Marketing and Advertising
In fiscal 2013, marketing and advertising expense was approximately $335.8 million, which was
spent primarily on weekly circular advertising. Our marketing and advertising activities centered
primarily on the following:
• Product price promotions to draw customers to our stores;
• Our wellness + loyalty program, which benefits members based on accumulating points for
certain front end and prescription purchases, and offers + UP rewards to provide members
additional savings;
• Emphasis on the value of our private brand products;
• Support of specific initiatives and stores, including competitor market intrusion and prescription
file buys; and
• Our vision to be the customer’s first choice for health and wellness products, services and
information.
Under the umbrella of our ‘‘With Us It’s Personal’’ brand positioning, we promote educational
programs focusing on specific health conditions and incentives for patients to transfer their
prescriptions to Rite Aid. We are also emphasizing our automated courtesy refill service. We believe all
of these programs will help us improve customer satisfaction and grow profitable sales.
Associates
We believe that our relationships with our associates are good. As of March 2, 2013, we had
approximately 89,000 associates: 13% were pharmacists, 43% were part-time and 26% were represented
by unions. Associate satisfaction is critical to our success. We have surveyed our associates to obtain
feedback on various employment-related topics, including job satisfaction and their understanding of
our core values and mission. We have also instituted an internal group, consisting of managers and staff
from all components of our business that is responsible for using feedback from associates throughout
the Company to create a better work environment.
The pharmacist shortage has eased significantly. The increase in the number of graduates from
U.S. Schools of Pharmacy is meeting our workforce demand. However, pharmacist employment
opportunities still exist in certain areas.
Research and Development
We do not make significant expenditures for research and development.
Licenses, Trademarks and Patents
The Rite Aid name is our most significant trademark and the most important factor in marketing
our stores and private brand products. We hold licenses to sell beer, wine and liquor, cigarettes and
lottery tickets. As part of our strategic alliance with GNC, we have a license to operate GNC ‘‘stores-
within-Rite Aid-stores.’’ We also hold licenses to operate our pharmacies and our distribution facilities.
Collectively, these licenses are material to our operations.
Seasonality
We experience moderate seasonal fluctuations in our results of operations concentrated in the first
and fourth fiscal quarters as the result of the concentration of the cough, cold and flu season and the
holidays. We tailor certain front end merchandise to capitalize on holidays and seasons. We increase
our inventory levels during our third fiscal quarter in anticipation of the seasonal fluctuations described
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