Wellness+ loyalty program, Wellness format stores continue to lift Rite Aid performance
CAMP HILL, Pa. — Rite Aid maintained its same-store sales momentum, posting gains across front-end and pharmacy comparable sales for the sixth consecutive quarter: Overall same-store sales were up 2.5%, reflecting a 2.7% across the front-end and a 2.4% uptick across pharmacy, for the first quarter ended June 2.
Rite Aid's loyalty program, Wellness+, continues to be a strong backwind helping to drive Rite Aid's results. Members totaled 25 million for the first quarter, up 11% from the year-ago period. Three-out-of-4 front-end transactions represent a Wellness+ member and 69% of pharmacy transactions go to Wellness+ members. That compares with 67% and 62%, respectively, in the year-ago period. "Wellness+ continues to be a game-changer," Standley said.
Rite Aid's Wellness store formats are likewise doing well and still outperforming Rite Aid's core stores. Rite Aid operated 423 Wellness stores through quarter's end and the Pennsylvania-based pharmacy operator plans to have 780 Wellness stores, or some 15% of its store base, up and running by year's end. To date Rite Aid has trained as many as 600 Wellness Ambassadors to support their active engagement with Rite Aid customers in the aisles.
For the quarter, Rite Aid reported revenues of $6.5 billion (up 1.2%), with a net loss of $28.1 million, or 3 cents per diluted share, and adjusted EBITDA of $274.2 million, or 4.2% of revenues. Results benefited from continued growth in same store sales and an improvement in gross margin.
Pharmacy comp sales, though positive, included an approximate 326 basis point negative impact from new generic introductions. Many pharmacy operators, including Rite Aid, have indicated that the negative impact on same-store pharmacy sales out of the 2012 generic wave only will become greater as the year progresses.
n the first quarter, the company relocated 2 stores, remodeled 143 stores and closed 15 stores. Stores in operation at the end of the first quarter totaled 4,652.
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