Yesterday, drug retailer Rite Aid conducted its Q1 2012 earnings call with John Standley – Chief Executive Officer, President, Director and Member of Executive Committee presenting an overview of their first quarter results and discussing their business. As well as Frank Vitrano, Chief Financial/Chief Administrative Officer discussing the key financial highlights and fiscal 2012 outlook.
Private Brand and the continuing deployment of their new Private Brand portfolio architecture played a prominent role in the quarter’s accomplishments.
According to Standley:
Other key accomplishments during the quarter include the continued rollout of our new private brand architecture. We now have over 1,200 items converted, and we’re on track to have 22 items in these brands this fiscal year. For the quarter, our private brand penetration increased to 15.6% from 15.3% last year.
Later in the question and answer portion of the call Joseph Stauff – from Susquehanna Financial Group, LLLP posed a Private Brand related question.
Joseph Stauff :Great. Final question, your private label proportion, it’s been about 16%, I guess, for the last couple quarters. I mean, is it fair to assume that, that proportion is going to go up? Or would you think it’s somewhat capped here?
John Standley: No, we expect private label to continue to grow. We continue to invest in private label. We’ve got a redesign of our brand architecture that’s rolling out during this year. We’ve got a lot of new packaging in the store. We’ve done a lot to reposition it from a pricing and promotional perspective. And so I think it’s going to continue to gain traction and grow as we go forward.