Rite Aid FY 1Q16 Earnings Call Notes

Beginning to cycle medicaid expansion growth

“We increased same-store sales by 2.9% over the prior year period, which was driven by 1.66% increase in same-store prescription count. But we — are beginning to cycle growth that occurred in states that expanded Medicaid coverage in 2014, we continue to benefit from this trend in the quarter.”

Improved loyalty program

“Perhaps, the biggest news of the quarter was our successful launch of wellness+ with Plenti, which is part of the first coalition loyalty program in United States. This enhancement to wellness+ allows our members to continue earning all of the terrific benefits that they’ve grown accustomed to over the past five years.

Script comp growth will become more difficult for next several months

We are now cycling last year’s strong Medicaid expansion benefit. So our expectation is that script comp growth comparison will become more difficult for the next several months.”

We’d like to have more counters

“In the long run, we’d certainly love to have more counters. So, I think that’s a strategic opportunity for us as we look forward. So, we are continuing to go through ways to work on that. We are excited about Envision but maybe, if there are some things that make sense over time to add to Envision to kind of round it out in terms of its capabilities. But I think those are kind of our primary focus areas. We’ve put a lot of capital back into our store base. We think that’s important.”

The experience in the store is key

“So the interaction in our stores is really critically to our strategy. The wellness ambassadors, pharmacist, even our front-end associates, coaches from Health Dialog, the things we’re really trying in clinics. So we are really trying to focus on things that make that experience in the store really what we want it to be. And I think those are the kind of things that we are going to focus on.”