Rite Aid 2016 Annual Report Download - page 11

available space. No single front end product category contributed significantly to our sales during fiscal
2016. Our Retail Pharmacy segment’s principal classes of products in fiscal 2016 were the following:
Percentage of
Product Class Sales
Prescription drugs ........................................ 69.1%
Over-the-counter medications and personal care .................. 9.8%
Health and beauty aids .................................... 4.8%
General merchandise and other .............................. 16.3%
We offer a wide variety of products under our private brands in virtually every department. We
intend to increase the private brand sales percentage in fiscal 2017 by expanding our product lines,
entering new categories and enhancing our seasonal programs. We believe that our assortment is
differentiated and a compelling value to our customers based on our quality standards and everyday
value pricing.
We have a strategic alliance with GNC under which we have opened over 2,300 GNC stores within
Rite Aid stores as of February 27, 2016 and have a contractual commitment to open at least 170
additional GNC stores within Rite Aid stores by December 2019. We incorporate the GNC stores
within Rite Aid stores 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.
Through our 100 percent owned subsidiary, EnvisionRx, we offer a broad range of pharmacy-
related services. 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. Through its Envision Insurance Company, EnvisionRx also
serves one of the fastest-growing demographics in healthcare: seniors enrolled in Medicare Part D. In
addition, Envision Rx, through its state of the art Laker Software, performs prescription adjudication
services for its own as well as other PBM’s.
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. Our
customers may also order prescription refills over the Internet through our website, www.riteaid.com,
our mobile app, 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. Our mobile
app, which is available for download for both the Android and iPhone platforms, allows our customers
to use their smartphones to manage their wellness + account, refill prescriptions, access the weekly
circular to view sale items, order photo prints and locate a nearby Rite Aid store. We have continued
to strengthen our presence on social media sites such as Facebook, Twitter and Pinterest through
unique promotions and contests.
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