Rite Aid To Add Save-A-Lot Grocery Stores To Rite Aid Pharmacies in Greenville, South Carolina Market
Camp Hill, Pa based drug retailer Rite Aid Corporation and Save-A-Lot, a SUPERVALU company, announced yesterday that Rite Aid has entered into a licensing agreement with Save-A-Lot to add the discount, limited assortment grocery store concept to Rite Aid’s ten existing stores in my hometown Greenville, SC. The stores will be co-branded Save-A-Lot Food Stores/Rite Aid Pharmacy and will continue to be owned and operated by Rite Aid.
Rite Aid will continue to offer health and beauty products, including its Private Brands, in these stores along with Save-A-Lot groceries. The Rite Aid pharmacies will operate as usual.
“We believe this new co-branded concept meets the needs of today’s consumers, who continue to search for value, quality and convenience, and we’re excited about the chance to offer our customers high quality grocery products including fresh meats and farm-fresh produce at great prices,” said Ken Martindale, Rite Aid Chief Operating Officer. “We chose to add Save-A-Lot because of its strong sales record, wide selection of attractively priced exclusive brands and its solid reputation for discount grocery. Plus it’s a model that’s efficient for Rite Aid associates to operate.”
Martindale added that the 10-store test is part of the company’s segmentation strategy. Since early 2009, Rite Aid has been transitioning from operating all of its stores the same to identifying unique opportunities among like groups of stores. “This is one of those unique opportunities, and we’re excited about the test,” Martindale said.
“This new format, featuring aspects of both traditional Rite Aid pharmacies and Save-A-Lot food stores, will provide added convenience and value to consumers in the Greenville, SC, area,” said Bill Shaner, Save-A-Lot president and CEO. “This relationship is an opportunity for Save-A-Lot and Rite Aid to test a co-branding strategy and the integration of Rite Aid pharmacies into our traditional Save-A-Lot grocery store model.”
The ten stores, which are located in Greenville, Easley, Greer, Simpsonville and Travelers Rest, will remain open as they begin converting to the new format this month. Rite Aid said it has designed the remodel process to make sure the pharmacy remains easily accessible, and Rite Aid’s pharmacy teams can continue to offer the same high level of service Greenville residents have come to expect. The remodels are expected to be completed in October.
This has the potential to reinvent the cobranding model and introduce thousands of new opportunities for Private Brands; I will be back in Greenville in the fall and look forward to experiencing this bold test. Perhaps it is the key to the revival of Rite-Aid