Rite Aid History: A Quick Look

Rite Aid (RAD) was founded by Alex Grass in 1962 in Scranton, Pennsylvania, as a health and beauty store, originally called Thrift D Discount Center. The company changed its name to Rite Aid Corporation in 1968 ahead of its initial public offering (IPO) on the American Stock Exchange (AMEX). In 1970, the company’s stock jumped to the New York Stock Exchange (NYSE).

Take a look at Rite Aid Hours, which includes highlights of its growth, scandals, and deals with Walgreens and Albertsons.

Financial Performance

As of 2019 reports from Rite Aid, the revenue was around $21.6 billion which is an increase from $21 billion from the previous year. Rite Aid reported a net loss from continuing operations for the year of $667 million. The company’s loss increased from 2018, which was $349.5 million.

Rite Aid has been separated into two business segments:

  • Retail Pharmacy Segment
  • Pharmacy service segment

Retail Pharmacy Segment

Rite Aid Retail Pharmacy segment sells brand and generic prescription drugs, as well as an assortment of front-end products including health and beauty aids, personal care products, seasonal merchandise, and a large private brand product line.

Pharmacy Services Segment

Rite Aid Pharmacy Services segment, which was formed on June 24, 2015, through the acquisition of EnvisionRx, provides a full range of pharmacy benefit services. The Pharmacy Services segment provides both transparent and traditional pharmacy benefit management (“PBM”) options through its EnvisionRx and MedTrak PBMs, respectively.

Acquisitions Fuel Growth

Within 10 years from opening their first store, Rite Aid grew to a place where it had around 267 locations in 10 states. The company first achieved $1 billion in sales in 1983. In 1987, with the acquisition of Gray Drug—420 stores in 11 states—Rite Aid became the largest drugstore chain in the U.S., with more than 2,000 stores.

By 1996, Rite Aid doubled in size to 4,000 stores after several acquisitions, including reading’s Drug Store, Lane Drug, Hook’s Drug, Harco, K&B, Perry Drug Stores, and Thrifty PayLess.

Rite Aid added more than 1,500 stores in 2007 with its acquisition of the Brooks and Eckerd drug store chains. Eight years later, it acquired pharmacy benefits manager Envision Pharmaceutical Services for $2 billion.

As one of the nation’s leading drugstore chains, with approximately 2,500 stores in 19 states and employing more than 51,000 associates they have built a strong presence on both East and West Coasts.