Rite Aid Re-Opens Revamped Beverly Hills Store - Analyst Blog

Rite Aid Corp. RAD moved ahead with the strategy of remodeling its stores into a new wellness store format with the re-opening of its renovated store in North Canon Drive of Beverly Hills. This store marks an evolution in the company's remodeling strategy featuring its most successful merchandising concepts as well as innovations to enhance the shopping experience of customers.

The re-opened store also includes a larger pharmacy section, reorganized check out segment and redesigned beauty, over-the-counter medicines and first aid departments. The store also introduces a Fresh Day Café and patio area, which offers refreshments to the customers.  

A special mention to the company's beauty segment, which has been redesigned with a contemporary look and offers several new prestige cosmetic and skincare lines. The segment also has a Beauty Adviser to train customers and assist them with beauty products offered in the store via demonstrations and education. Renovation at this store testifies the company's aggressive overhaul strategy, wherein it is continuously trying new concepts to apply in its future remodels.

The celebrations to mark the reopening of the Beverly Hills store will last up to Jul 5. During the celebrations, the company will make donations to 3 local non-profits organizations including Children's Hospital Los Angeles, the Beverly Hills Public Library and the Beverly Hills Firefighters Association. Other events include appearances by celebrity makeup artists, free health screenings, product demonstrations and sampling along with food and refreshment arrangements.

Launched in 2011, the company's strategy of remodeling its wellness stores focuses on offering products, resources, and information to provide healthy living to its customers and their families. The renovated stores feature a new Vision Center, Diabetic Diagnostic Center, Men's Grooming, Nail bar, Hair care aisle, Grab and go cooler and so on. These remodeled stores also tempt customers to spend more time on selecting their personal care products, thereby enabling the company to generate increased sales.

So far, Rite Aid has remodeled more than 1,300 stores across the country. Moreover, the company intends to convert another 450 stores to feature its Wellness store format by the end of Fiscal 2015.

At present, Rite Aid has a Zacks Rank #4 (Sell). A better-ranked stock in the related industry is Herbalife Limited HLF with a Zacks Rank #1 (Strong Buy). Other stocks performing well in the retail sector are Citi Trends Inc. CTRN and Christopher & Banks Corp. CBK, both carrying a Zacks Rank #1.