Rite Aid is also looking to invest in new offerings in order to “meet the evolving needs of customers and organizations.” This includes expanding its health plan business and improving outcomes by increasing engagements across its in-store pharmacies.
A Look at Loyalty and Digital Experiences
The company has identified several growth opportunities, including growing its own-brand portfolio of products and expanding its e-commerce presence with heightened digital experiences. Rite Aid has invested over $300 million in capital over the next three years to enhance its digital experience and modernize its tech stack to support its retail stores and pharmacies, improve back-office productivity, and grow its digital business.
Additionally, the company is continuing to invest in its newly updated loyalty program, which launched late last year. Rite Aid worked with dunnhumby to revamp its price, promotion and loyalty programs, leveraging consumer data models and insights to improve customer value perception digitally at more than 2,500 stores in 17 states. Schroeder expects that loyalty card program changes and own-brand initiatives will drive an incremental $30 million in gross profit dollars.
Tied to the consumer engagement push is the growth of its company-owned Elixir membership — the tech that’s supporting its pharmacy care experience. Rite Aid said it is on target to sell 300,000 new members for January 2023.
“We exceeded our 2022 plan amid continuing challenges of the COVID-19 pandemic. As we look forward to the year ahead, we are ready and energized to compete in a new post-pandemic normal,” said Donigan in the company’s earnings report. “We demonstrated the important role that pharmacists play in the everyday health of our customers and are well positioned to grow in a trillion-dollar pharmacy market through our continued leadership as a full-service pharmacy company.” — Heyward Donigan, CEO, Rite Aid