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S.C. Save-a-Lot Stores to Co-Brand With Rite Aid

Save-A-Lot, a Supervalu company, and Rite Aid Corp. have entered into a licensing agreement covering 10 of the limited-assortment discount grocery store chain’s locations in the Greenville, S.C., market. The resulting rest stores will be co-branded Save-A-Lot Food Stores/Rite Aid Pharmacy and will continue to be owned and operated by Rite Aid.

The locations will offer pharmacy services and health and beauty products, including Rite Aid private brand items, as well as Save-A-Lot grocery items.

“We believe this new co-branded concept meets the needs of today’s consumers, who continue to search for value, quality and convenience, and 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, COO of Camp Hill, Pa.-based 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.”

According to Martindale, the 10-store test is part of the drug store operator’s segmentation strategy. Since early last year, Rite Aid has been moving from operating all of its stores the same way to seeking out unique opportunities among similar groups of stores. “This is one of those unique opportunities,” he noted.

“This new format, featuring aspects of both traditional Rite Aid pharmacies and Save-A-Lot food stores, will provide added convenience and value to consumers in the Greenville, S.C., area,” added Bill Shaner, president and CEO of Save-A-Lot, which is owned by Minneapolis-based Supervalu. “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.”

The 10 stores, which are located in Greenville, Easley, Greer, Simpsonville and Travelers Rest, will remain open during the conversion process, which begins this month and should be completed in October. Rite Aid said that the pharmacy would be easily accessible during the remodels.

Rite Aid operates nearly 4,800 stores in 31 states and the District of Columbia. Save-A-Lot has 1,200 stores in 39 states from Maine to California, and serves more than 5 million shoppers each week.

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