Rite Aid 2014 Annual Report Download - page 18

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We may be subject to significant liability should the consumption of any of our products cause injury, illness
or death.
Products that we sell could become subject to contamination, product tampering, mislabeling or
other damage requiring us to recall our private brand products. In addition, errors in the dispensing
and packaging of pharmaceuticals could lead to serious injury or death. Product liability claims may be
asserted against us with respect to any of the products or pharmaceuticals we sell and we may be
obligated to recall our private brand products. A product liability judgment against us or a product
recall could have a material, adverse effect on our business, financial condition or results of operations.
If we fail to protect the security of personal information about our customers and associates, we could be
subject to costly government enforcement actions or private litigation.
Through our sales and marketing activities, we collect and store certain personal information that
our customers provide to purchase products or services, enroll in promotional programs, register on our
web site, or otherwise communicate and interact with us. We also gather and retain information about
our associates in the normal course of business. We may share information about such persons with
vendors that assist with certain aspects of our business. Despite instituted safeguards for the protection
of such information, security could be compromised and confidential customer or business information
misappropriated, for which we have paid related penalties in the past. Loss of customer or business
information could disrupt our operations, damage our reputation, and expose us to claims from
customers, financial institutions, payment card associations and other persons, any of which could have
an adverse effect on our business, financial condition and results of operations. In addition, compliance
with tougher privacy and information security laws and standards may result in significant expense due
to increased investment in technology and the development of new operational processes.
Item 1B. Unresolved SEC Staff Comments
None
Item 2. Properties
As of March 1, 2014, we operated 4,587 retail drugstores. The average selling square feet of each
store in our chain is approximately 10,000 square feet. The average total square feet of each store in
our chain is approximately 12,600. The stores in the eastern part of the U.S. average 8,900 selling
square feet per store (11,100 average total square feet per store). The stores in the western part of the
U.S. average 14,900 selling square feet per store (19,400 average total square feet per store).
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