Full Description

Rite Aid Corporation, incorporated in 1968, is a retail drugstore chain in the United States. The Company operates its drugstores in 31 states across the country and in the District of Columbia. As of February 28, 2009, it operated 4,901 stores. In its stores, the Company sells prescription drugs and an assortment of other merchandise, which it calls front-end products. During the fiscal year ended February 28, 2009 (fiscal 2009), prescription drug sales accounted for 67.2% of its total sales. The Company offers approximately 28,000 front-end products, which accounted for the remaining 32.8% of its total sales during fiscal 2009. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise, and other everyday and convenience products, as well as photo processing. It offers approximately 3,300 products under the Rite Aid private brand, which contributed approximately 13.5% of its front-end sales in the categories during fiscal 2009.

The overall average size of each store in the Company’s chain is approximately 12,500 square feet. As of February 28, 2009, approximately 57% of its stores are freestanding; approximately 49% of its stores include a drive-thru pharmacy; approximately 42% include one-hour photo shops, and approximately 35% include a GNC store-within-Rite Aid-store. The types and number of front-end products in each store vary, and selections are based on customer needs and preferences and available space. It has a strategic alliance with GNC, under which it had opened 1,726 GNC stores-within-Rite Aid-stores as of February 28, 2009.