Drugstore chain retailer,
Rite Aid Corporation
) has extended its long standing partnership with
GNC Holdings Inc.
), a leader in healthcare product supplies, for another five
years through 2019. The companies' partnership relation in the
drug business dates back to Dec 1998.
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As part of the extension deal, Rite Aid will open about 300 more
GNC LiveWell store-in-stores inside its stores throughout the
five-year period. Rite Aid operated over 2,200 GNC
store-in-stores within its countrywide stores as of Dec 19, 2013,
with most of them functioning in the company's new Rite Aid
Wellness store format.
The partnership between Rite Aid and GNC is mutually beneficial
as the two companies share a common objective of meeting the
health and wellness needs of their customers. GNC Holdings is a
leading retailer of vitamins, minerals, and herbal supplement
products, sports nutrition products and diet products.
Rite Aid, which trails
CVS Caremark Corp.
) in terms of store count, continues to remodel its stores
focusing on converting them into the Wellness store format in
order to improve its overall store productivity. The company's
new wellness stores feature a new Vision Center, Diabetic
Diagnostic Center, Men's Grooming, Nail bar, Hair care aisle,
Grab and go cooler and so on, thus, luring customers to spend
more time on selecting their personal care products and thereby
enabling the company to generate increased sales.
During the third quarter, Rite Aid completed renovation at 94
outlets, while it relocated 4 stores. Since the start of its
wellness program at the end of the third quarter, the company
accomplished wellness remodels at about 1,117 stores. As of Nov
30, 2013, Rite Aid operated 4,595 stores across 31 states and the
District of Columbia.
Currently, Rite Aid carries a Zacks Rank #3 (Hold).