CAMP HILL, Pa. — Rite Aid is in discussion with Supervalu on the future of their combination drug and discount grocery stores, which continue to show strong sales, Rite Aid officials said.
Speaking in a conference call with financial analysts, John Standley, Rite-Aid’s chief executive officer, said comparable-store sales at the 10 Rite-Aid stores in the Greenville, S.C., market that were co-branded with Save-A-Lot in a licensing arrangement last year were up by 83% during the fiscal fourth quarter, which ended Feb. 26. That’s a little slower than its grand opening pace but still “very dramatic,” Standley said.
Standley said the company could shift a percentage of its $300 million capital-spending budget for its new fiscal year to Save-A-Lot stores if comes to an agreement with the Minneapolis-based retailer for additional co-branded stores.
“We’re still in some discussions with Supervalu about what the future of the Rite Aid Save-A-Lot combo store will be,” he added. “And how those play out will probably have some impact on the mix of stores for this fiscal year.”
