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CAMP HILL, Pa. — Rite Aid Corp. unveiled a new logo as part of a broader rebranding initiative intended to burnish the retail pharmacy chain’s appeal as a health and wellness destination.
The revitalization plan, dubbed RxEvolution, rests on three pillars: becoming the dominant mid-market pharmacy benefits manager, unlocking the full potential of Rite Aid’s pharmacists, and reinvigorating the retail experience, both in-store and online.
The update, which will roll out over the next 18 months, was unveiled March 16 during Rite Aid’s annual meeting with investors.
“Rite Aid is a business in the midst of a turnaround, and it is time for a radical change — our RxEvolution,” said Heyward Donigan, Rite Aid’s president and chief executive officer. “This is not business as usual at Rite Aid. We have the unique opportunity to serve a growing customer base and strengthen the power of our iconic brand. We are doubling down on our pharmacy business. We are renewing our commitment to leverage the power of our trusted pharmacists across our retail and pharmacy services business to deliver on the promise of real consumer engagement.”
Rite Aid has 2,464 stores in 19 states.
Donigan told analysts that the company will introduce a new store format, called Store of the Future, later this year. Renovations will convert another 65 stores to fit the new model by the end of fiscal 2021. The layout places the pharmacy in the center of the store. The new merchandise mix emphasizes healthy snacks and beverages, CBD, aroma therapy and skin care products.
New products that appeal to younger consumers are enlivening the mix, and shoppers will benefit from a higher degree of personalization, much of it delivered through digital means.
By effectively matching Rite Aid’s strengths to unmet needs, the strategic plan represents a clear vision that has the potential to bring about fundamental changes that should enable the company to thrive.
The determination to “make it new” at Rite Aid is evident in every aspect of the plan.
The company’s PBM business, EnvisionRxOptions, is taking on a new brand identity — Elixir. More important, the PBM will more closely align its diverse offerings, which include mail-order and specialty pharmacy services, network and rebate administration, and Medicare Part D insurance. That, in turn, will raise Elixir’s profile, and enhance its appeal among mid-size companies, those that employ between 150 and 20,000 workers, and regional health plans across the country. As the only payer-agnostic PBM with a large retail presence, Elixir is equipped to deliver crafted services in a niche market eager for new solutions, according to Donigan, who joined Rite Aid in August.
Restructuring workflow and making better use of technology will enable Rite Aid’s 6,400 pharmacists to practice at the top of their license and encourage customers to take a holistic approach to their well-being, she said.
“We are doubling down on pharmacists as the ultimate extender in the health care system. So we are going to be partnering with provider systems and health plans,” Donigan said. “What we’re really focused on is the pharmacist as the last-mile connector between the primary care physicians or the health systems and the consumer, because we touch a consumer 25 to 30 times a year, more than any other health care professional.”
