Rite Aid and Supervalu's Save-A-Lot limited assortment grocery format are teaming up to test a new food/drug combo concept in 10 stores in the Greenville, SC market.
The new concept, which will operate under the Save-A-Lot Food Stores/Rite Aid Pharmacy banner, will have a pharmacy and health and beauty care items -- including private label found in the drugstore chain's stores -- along with the standard food offerings, from the grocer.
"This relationship is an opportunity for Save-A-Lot and Rite Aid to test a co-branding strategy and the integration of Rite Aid pharmacies into our traditional Save-A-Lot grocery store model," said Bill Shaner, Save-A-Lot president and CEO, in a press release.
"We're excited about the chance to offer our customers high quality grocery products including fresh meats and farm-fresh produce at great prices," said Ken Martindale, chief operating officer for Rite Aid. "We chose to add Save-A-Lot because of its strong sales record, wide selection of attractively priced exclusive brands and its solid reputation for discount grocery. Plus it's a model that's efficient for Rite Aid associates to operate."
Discussion Question: What are your expectations for the Save-A-Lot Food Stores/Rite Aid Pharmacy combo concept? What do you see as the benefits and pitfalls of such an arrangement?