Rite Aid 2013 Annual Report Download - page 8

Products and Services
Sales of prescription drugs represented approximately 67.6%, 68.1%, and 67.8% of our total sales
in fiscal years 2013, 2012 and 2011, respectively. In fiscal years 2013, 2012 and 2011, prescription drug
sales were $17.1 billion, $17.7 billion, and $17.0 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
2013. We also offer photo finishing services in a majority of our stores. Our principal classes of
products in fiscal 2013 were the following:
Percentage of
Product Class Sales
Prescription drugs ........................................ 67.6%
Over-the-counter medications and personal care .................. 9.9%
Health and beauty aids .................................... 5.2%
General merchandise and other .............................. 17.3%
We offer a wide variety of products under our private brands, which contributed approximately
18.3% of our front end sales in the categories where private brand products were offered in fiscal 2013.
We intend to increase the number of private brand products during fiscal 2014, 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 store as of March 2, 2013 and have 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 our recently enhanced website, 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 and implementation of our improved 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, order photo prints and locate a nearby Rite Aid store
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