Rite Aid Brand Makeover
Company To Re-design Packaging And Offer More Value Items
A new and improved Rite Aid Brand is beginning to take shape after the company recently announced plans to restructure its private brand portfolio. Rite Aid Brand performance continues to improve – penetration, or the percentage of front-end sales represented by Rite Aid Brand, increased 1.8 percent year over year in the third quarter.
The company believes changes to pricing and package design, as well as upgraded product quality, will help to both build on the momentum the company is currently experiencing with Rite Aid Brand and strengthen customer loyalty to private brand and Rite Aid stores.
The overhaul is expected to take 18-24 months as the company works with its 160 Rite Aid Brand suppliers to complete the project.
“Rite Aid Brand currently does big business and many good things have been done to get the brand to where it’s at today,” says Bryan Shirtliff, senior vice president of category management. “At the same time, we believe we have an opportunity to make Rite Aid Brand stand out in our field and be the best in class, and that is what we’re aiming for.”
Kathy Horton, director of Rite Aid private brands, says a key component is a new “brand architecture” that includes three tiers:
- A Premium tier for higher-end products such as Thrifty Ice Cream, PharmAssure and GNC
- A National Brand Equivalent (NBE) tier that includes fresh new sub-brands such as Pantry (food), Renewal (beauty), Tugaboos (baby) and Home (general merchandise)
- The brand’s first-ever Value tier, named Simplify
Horton says some categories will have fewer than three tiers. “For some categories, having three tiers doesn’t make sense,” she says. Having three tiers for certain categories gives Rite Aid flexibility to meet the needs of its diverse customer base while giving each product a defined role that gives the brand better synergy, she says.
Other key components include improving the quality of certain items and re-designing packaging for at least 2,400 Rite Aid Brand products.