abhishreshthaa
Abhijeet S
Rite Aid (NYSE: RAD) is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill.[3][4] It operates more than 4,780 stores in 31 states and the District of Columbia, features a strong presence on both the East and West Coasts, and employs approximately 109,000 associates. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S.
Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Today, Rite Aid is publicly traded on the New York Stock Excha
nge under the ticker RAD. Rite Aid reported total sales of USD $24.3 billion in fiscal year 2008. In 2008, its market capitalization dropped to under $500 million. As of 25 February 2010 (2010 -02-25)[update], the market capitalization of Rite Aid was about $1.3 billion.
Strengths
* Large market share position in some markets
* Focus on RX
* Management team capable of integrating Brooks-Eckerd acquisition
* Focus on customer support
* Strategic alliance with GNC
* Strategic Partnership with drugstore.com
* Online presence at riteaid.com
* Store cleanliness.
* Internal communications network.
Weaknesses
* Old store base
* Inconsistent store experience from West vs. East coast
* Declining market share
* Low sales productivity
* Less convenient real estate than Walgreens, CVS, WalMart
* Lacks PBM scale
* Poor private label equity
* Huge long term debt ($5.69 billion)
* Operating at a loss
* Low side of industry for Pharmacist Pay
Opportunities
* Aging population
* New generic drugs
* Expanding Drug Market
* Private label growth
* Leverage acquisition of Brooks-Eckerd
* Passage of Healthcare reform Bill (33 million more insured customers)
* diagnostic testing through DNA
Threats
* Integration
* Competitive pressure from pharmacies and other channels
* Eroding market share
* Higher mix of RX which has lower margins
* Political uncertianty
* Shortage of qualified Pharmacists
Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Today, Rite Aid is publicly traded on the New York Stock Excha
nge under the ticker RAD. Rite Aid reported total sales of USD $24.3 billion in fiscal year 2008. In 2008, its market capitalization dropped to under $500 million. As of 25 February 2010 (2010 -02-25)[update], the market capitalization of Rite Aid was about $1.3 billion.
Strengths
* Large market share position in some markets
* Focus on RX
* Management team capable of integrating Brooks-Eckerd acquisition
* Focus on customer support
* Strategic alliance with GNC
* Strategic Partnership with drugstore.com
* Online presence at riteaid.com
* Store cleanliness.
* Internal communications network.
Weaknesses
* Old store base
* Inconsistent store experience from West vs. East coast
* Declining market share
* Low sales productivity
* Less convenient real estate than Walgreens, CVS, WalMart
* Lacks PBM scale
* Poor private label equity
* Huge long term debt ($5.69 billion)
* Operating at a loss
* Low side of industry for Pharmacist Pay
Opportunities
* Aging population
* New generic drugs
* Expanding Drug Market
* Private label growth
* Leverage acquisition of Brooks-Eckerd
* Passage of Healthcare reform Bill (33 million more insured customers)
* diagnostic testing through DNA
Threats
* Integration
* Competitive pressure from pharmacies and other channels
* Eroding market share
* Higher mix of RX which has lower margins
* Political uncertianty
* Shortage of qualified Pharmacists