Riteaid CEO Commits to Continued Private Brand Growth

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.

Read the transcripts of the entire call.

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Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.