Management Ventures, Inc.
Chain Drug
Re-Planning for an Uncertain Reality
•Presented by:
•Brendan Langan
•Director of Retail Insight
•April 29, 2009
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
MVI Planning Forum
• Up, Down or Sideways?
• The New Path to Partnership
• Full Steam Ahead
• Living on “Borrowed” Time
5-3
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Up, Down or Sideways?
Re-Planning for an Uncertain Reality
• Step 1: Survival of the Fittest
•
•
•
Decade of growth and consolidation
Not everyone will be here, at least in current form
Near-term challenging, but this too shall pass
• Step 2: Retail Climate Change
•
•
Health care providers 1st, retailers 2nd
Step-change underway, necessary given heavy Rx economic
model, growing complexity of health care & hyper-competition
• Step 3: Mandate for Retail Step-Change
•
Drug must look very different 2 - 3 years out
– Requires step-changes to the box, assortment, and brand necessary to build
clearly defined & differentiated consumer value proposition
•
Must be easy, relevant, and/or different
Source: MVI analysis
5-4
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
If You Only Use 2 Slides Today…
Chain drug to grow at 3.6%
CAGR 08-10E to USD159
million, 10.3% of $ Added…
Slowing growth and
deflation (PL & Generics)
Despite slowdown, WAG
still projected to generate
60% of chain drug sales
thru 2010E, adding $600MM
in FE sales and 280 stores
Longs enters base in
2010E, to outpace WAG in
FE sales adding $900
million thru 2010E (5%
CAGR) and 80 new stores
Shrinking store base and
per store FE and Rx
productivity driving decline
in sales and stores
Source: MVI research and analysis
5-5
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Channel: Key Planning Considerations
• Past (1990 – 2008)
•
Double digit growth and consolidation, fueled by rapid growth of
Rx, changing economic and operating model, and need for scale
• Present (2009 - 2011)
•
•
•
•
Prescription unit and sales volume slowing
From channels to duopolies, leaders are pulling way
Consolidation accelerating and competition intensifying
Unemployment is the indicator to watch (now 8.5%)
• Future (2010 and Beyond)
•
•
•
Aging and diversification of the population
Health and wellness trends
Fewer, more sophisticated and focused customers
– Did we lose something along the way?
5-6
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Channel: Key Planning Considerations

Location, Location, Location

One Size Does Not Fit All

Customer (She) is Always Right

Less is More

Cash is King!
5-7
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
MVI Planning Forum
• Up, Down or Sideways?
• The New Path to Partnership
• Full Steam Ahead
• Living on “Borrowed” Time
5-8
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Walgreens New Sense of Urgency
Historical Stock Price (Jan 2006–Feb 2009)
Jeff Rein
Named CEO
Q4 FY07
Earnings Miss
CVS Announced
Caremark Merger
Re-launched
Prescription
Savings Club (PSC)
Acquired
Happy Harry’s
Acquired
CuraScript
Infusion
Pharmacy
Walmart
Launches $4
Generics
2nd “Unsolicited”
Bid For Longs
Further slowed
organic store growth
Acquired
Take Care
Health
Acquired
Option Care
Acquires I-Trax and
Whole Health, Forms
New Health and
Wellness Division
Credit Ratings Cut,
Announced Plans to
Slow Organic Growth
Appointed new
CEO Greg
Wasson
Cut corporate
and field
management
positions by 9%
Abrupt Departure of Jeff Rein,
Alan McNally Named
Chairman and Acting-CEO
Walgreens Withdraws Bid for
Longs, Credit Ratings Cut
2006
2007
Source: Company reports, MVI research and analysis
2008
5-9
2009
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Walgreens 2011: More From the Core
Source: Walgreen Co., MVI research
5-10
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Slowing Organic Unit Growth
Net Organic New Drugstores
10%
8%
161
529
475
280
200
9.0%
7.4%
7.0%
2013E
CAGR
08-13E
2003
2008
Retail Sales
31.3
56.1 12.3%
73.7 5.6%
Front-end
12.4
20.7 10.9%
28.0 6.2%
Pharmacy
19.0
35.3 13.2%
45.7 5.3%
4,224
6,443 8.8%
7,784 3.9%
Stores
6%
CAGR
03-08
Walgreens
4.0%
4%
2.8%
2.5% - 3%
2%
0%
1997
Source: Company reports, MVI research
2008
2009E 2010E 2011E 2012E 2013E
5-11
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Mandate for Step-Change: Enhancing the
Shopping Experience and Shop-ability
What Does the Walgreens Brand Stand For?
A Drugstore or Santa’s Workshop?
Source: MVI store visit
5-12
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Redefining Convenience: When Location
isn’t Enough & More Doesn’t Always = More
Source: MVI store visit, research and analysis,
Walgreen Co.
5-13
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
The Challenge and the Opportunity
• % of Baskets and Average Front-End Items per Basket
Cross-sell
Solution sell
Understand
and grow
Learn and
reward
GOAL
# of items in Basket
Source: Walgreen Co.
5-14
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Step 1: Who is She? How Does She Shop?
Source: MVI research and analysis
5-15
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Segmenting the Shopper
•
Efficient Eileen: Represents approximately 45% of sales. Young Boomer (or
older Generation Xer) who is a frequent shopper – enjoying the convenient locations,
efficiency and information delivered at the shelf. Shops with immediate need in mind
(i.e. OTC).
•
Active Amy: Represents approximately 17% of sales. Busy mom who is a fickle,
but family-focused convenience seeker. Less likely to stock-up and is not loyal to a
specific retailer.
•
Socialite Stella: Represents approximately 16% of sales. Fun seeking
consumer who enjoys the treasure hunt and likes the current store. Walgreens
loyalist, who tends to be African American. Fill-in shopper who gets to know the
employees personally and is a social-influencer.
•
Merry Maria: Represents approximately 11% of sales. Advice seeking,
community-conscious shopper who tends to be Hispanic, a parent and interested in
getting health and wellness advice. This Walgreens-loyal shopper reviews the circular
before shopping and shops for entire basket.
•
Care Seeking Carol: Represents approximately 4% of sales. Older
demographic (62 years old and older) with special needs. She is a heavy pharmacy
user and health care is her top priority. Considers herself a traditionalist and does not
typically use the Internet . Often has a smaller basket size and is looking for a personal
service.
Source: Company presentation, MVI research and analysis
5-16
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Segmenting the Trip Missions
Source: Company presentation, MVI research and analysis
5-17
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Walgreens New Merchandising Strategy
“Placing Bets” – Consumers, Categories, Vendors
“We have to stop betting $2 on every horse. Not all sales from all
categories are equal.” — John Fleming, Walmart Sept. 2008
Category Identifiers
Signature
Power
Staple
Complement
“Best in US”
“Best in Drug”
“In the Game”
“Convenience”
“Products that are
representative of
who we are – the
product categories
we want to win in.” - Kim Feil
“Products that are
critical to a drug
retailer and are part
of a person’s
everyday life.” - Kim
Feil
Routine categories
with varying growth
prospects.
Examples: OTC,
pharmacy, skin care,
vitamins, photo, etc.
Examples: batteries,
candy, dry groceries,
snacks, etc.
Source: MVI research and analysis, Walgreen Co.
Examples: candles,
stationary, household
cleaners, toys
5-18
“Categories you
expect to find with
something else.” –
Kim Feil
Examples: alarm
clocks, apparel,
electrical, hardware,
light bulbs, frames, etc.
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Source: Walgreens.com, www.blind.com
5-19
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Grouping the Store into Solution Centers or
“Worlds” to Improve the Experience
Source: MVI Store Visits, MVI Analysis
5-20
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Redefining Convenience
From Stack it High… to Less is More
Tomorrow
Today
Source: MVI store visit
5-21
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
CCR: Building Loyalty with Distinctive
Assortment, Access and Affordability
Today
Tomorrow
Something for
everyone
Best Offerings for valued
customers
Item/department focus
Convenient solutions for
essentials and
discretionary needs
Item-intensive / labor
demand
Personalized customer
service
Source: Walgreen Co., MVI research and analysis
5-22
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Walgreens 2011: Key Planning Considerations
From One-Way to Fully Integrated – Overnight?
•
•
•
•
Optimize the Assortment
• Placing bets on categories, what role do you serve?
• Not just about reducing SKUs, though big push on there as well
• Brand agnostic – developing solutions for her
Amplify Vendor Relationships
• Alignment, collaboration, innovation and focus
• Increased 2-way transparency and accountability (Contribution Profit)
• Requires mindset shift from sq ft growth to optimization!
Effective Pricing and Promotion
• Evaluating all promotional vehicles, including revamp of weekly ad
• Less space (ad) and off-shelf = fewer, more impactful themed
solutions
• More dedicated to getting price/value right on KVIs (hybrid Hi Lo)
Enhance the Shopping Experience
• No longer one size fits all, changing profiles and adjacencies
• Increased focus on store standards, integrated marketing
THE WAY FORWARD: Partnership and Capabilities
5-23
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MVI Planning Forum
• Chain Drug: Up, Down or Sideways?
• The New Path to Partnership
• Full Steam Ahead
• Living on “Borrowed” Time
5-24
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
CVS Growth Projections 2003-2013E
Retail Sales Projected to Grow to $64.9 billion
85.0
8,000
Longs Drug
Osco/Sav-on
6,953
7,123
6,245
6,394
64.9
65.0
61.6
5,328
5,420
54.5
55.0
Retail Sales USD Billions
7,326
7,000
Eckerd
6,151
45.0
7,216
4,132
42.1
44.9
56.2
6,000
58.7
5,000
47.2
4,000
35.0
31.8
34.0
3,000
25.2
Retail Drugstores
75.0
7,030
25.0
2,000
15.0
5.0
(5.0)
7.9
9.5
10.7
03
04
05
15.3
17.5
18.4
19.4
13.3
14.5
06
07
08E
09E
10E
11E
Total Retail Sales
Source: MVI estimates; company reports
5-25
FE Sales
20.3
21.4
1,000
12E
13E
-
Stores
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
The Big 3: Same Direction, but Different
Rates of Growth
Longs
Retail
Drugstores
6,923
Osco /
Sav-on
Eckerd
6,636
4,915
Happy
Harry’s
Brooks
Eckerd
Source: Company reports, MVI analysis
5-26
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Locking Up Share in Key Growth Markets
Decade of M&A Fueled Expansion/Diversification
•
Longs Drug Stores:
• Completed acquisition of 521 Longs Drug Stores in October 2008,
gaining valuable real estate and market share in California, Hawaii,
Nevada and Arizona
• Also picked up 4 distributions centers and RxAmerica PBM business
•
MinuteClinic
• Small, but one of the single most strategic acquisitions of all
• Forms core of patient-focused healthcare strategy, plus growing
demand from B2B customers (pull strategy)
• Slowing growth to focus on expansion of services
•
Osco/Sav-on
• Remodels went off without a hitch, stores have been transformed to
meet with CVS standards
• Southern California now outpacing “Core” CVS, both in terms of sales
per building and margin
– S. California now the largest sales producing market in the chain
•
Eckerd
• Continued progress in core acquisition markets
• Increased marketing efforts to gain Rx share in the face of stiff
competition
Source: Company reports, MVI analysis
5-27
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Acquisition of Longs Accelerated
Expansion in N. Cal and Hawaii
2008 Performance
Longs
CVS
Sales
Retail Sales
Rx Sales Mix
FE Sales Mix
Private Label Penetration
Sales per store
Sales per sq ft
Stores
Distrbution Centers
Store Prototype
$5.2B
$4.8B
51.4%
48.6%
8%
$9.1M
$512
529
4
TVA
$78.4B*
$47.4B*
67.5%
32.5%
16%
$7.4M
$602
6,394
14
LIFE
* Adjusted Retail sales, Longs & Calendar Shift
Source: MVI research and analysis
5-28
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Operated 6,923 Stores in 40 states and the
District of Columbia as of December 31, 2008
Longs provided 529
stores and 4 DCs,
making California
CVS’s largest market
12
19
6
2 31
35
28
432
242
455
25
10
4
372
233
64
29
289
311
49
244
46
288
126
34
2
184
2
33
493
NJ - 257
DE - 1
MD - 166
DC - 53
57
389
127
MA - 329
RI - 57
CT - 133
147
295
87
681
44
CVS States
CVS and Longs States
Source: Company reports, MVI Research
Longs stores
Longs Corporate HQ
Longs Distribution Facility
5-29
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
The Competitive Landscape:
Increased Direct Competition
California
Hawaii
Nevada
Arizona
Total
% Ttl Stores
CVS
400
1
68
129
598
9.4%
LDG
WAG
460
506
41
1
25
69
2
231
528
807
100.0% 12.1%
RAD
611
0
1
0
612
12.5%
• Longs gives CVS a leading
position throughout Central and
Northern California, and Hawaii
• It would have taken CVS 10
years to develop these markets
organically
• Facing intense direct inchannel and small box
competition
Source: Company reports, MVI Research
5-30
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Longs Heavy Shoppers More Affluent and
Ethnically Diverse
Heavy Shoppers: Demographic Summary
% Heavy Shoppers
Affluence:
Doing Well
Total US
Average
CVS
Longs Drug
35. 9%
39.5%
55.3%
9.1%
8.6%
14.6%
36.8%
36.5%
Annual Spend
$ 448
$ 440
Share of Dollar
Requirements
6.0%
5.4%
18.0
18.1
$ 24.9
$ 24.3
Ethnicity:
Hispanic HH
6%
FMHH Age: 35-54
37.3%
Trips per Shopper
Dollars per Trip
Source: MVI analysis based on Mid year 2008 IRI Panel Data
5-31
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
East Coast vs. West Coast Drugstores
The Longs Optimization Challenge
How will CVS change the
assortment in the newly
acquired Longs stores?
Source: Company reports, MVI analysis
5-32
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Pricing and Promotional Strategies
Weekly Advertising Circular
Pages
Blocks
Blocks per Page
PL Blocks
PL % Blocks
WAG
1,144
12,343
11
2,204
17.9%
CVS
RAD
1,010
714
10,208 10,249
10
14
1,413
1,439
13.8% 14.0%
LDG
1,062
14,408
14
1,686
11.7%
Longs employs a classic Hi-Lo strategy, of which the weekly circular and
United Rewards Program play a key role
• Longs distributes a weekly advertising circular, offering a wide
assortment of promotions
• Longs circular strategy is more akin to a grocery format, underdeveloped PL
relative to CVS
Source: ECRM, MVI analysis
5-33
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
CVS: Key Planning Considerations
•
•
California is now largest market, (12% of base ~850 stores) and a
disproportionate share of total sales
Still, CVS is a national chain with a New England state of mind
– Not completely comfortable in a store over 11,000 sq ft
– Must now contend with a box upwards of 4X the size
– Managing this from centralized HQ in RI could prove difficult
•
•
•
•
CVS will need help from suppliers to get arms around very different
markets, footprint, economic model, promotional and merchandise
mix and shopper base
Opportunities to improve sales productivity and GM% though
introduction of ExtraCare, CVS’s private brands, mix shift, and
focus on shrink
How far assortment optimization? Will CVS still cut keys? Can
CVS localize in a meaningful and scalable way?
May be dilutive in near-term, but the right long-term investment
– Concentrated exposure to regional economic conditions
– Facing increased small box competition
5-34
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MVI Planning Forum
• Up, Down or Sideways?
• The New Path to Partnership
• Full Steam Ahead
• Living on “Borrowed” Time
“In the struggle for survival, the fittest win out at
the expense of their rivals because they succeed in
adapting themselves best to their environment.”
– Charles Darwin
5-35
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Today’s Retail Reality
Living on “Borrowed” Time
•
Turnaround of acquired stores taking longer than expected
– Plan in place to address weakening operating trends, execution and credit
metrics
Revamped management team focused on reducing costs
and working capital to drive cash flow
• Heavily leveraged, but last summer’s debt refinancing
(though costly) bought some time
• Liquidity “ok” for now, but secondary sources unreliable and
options constrained…. Cash is King!
• Amended A/R facility, albeit reduced and repriced
• Should regain compliance with New York Stock Exchange
• Primary banking and vendor relationships stable,
management maintaining open lines of communication
•
Source: Company reports, MVI research
5-36
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Can Rite Aid Shrink to Profitability?
Growth Projections 2003-2013E
Preservation - closing underperforming locations,optimizing
resources and consolidating distribution network
$40
1,726
5,059
$35
(158)
(105)
(45)
4,901
(18)
4,796
4,751
4,733
4,742
4,754
$26.2
$25.7
$25.5
$25.8
$26.2
$26.5
9
6,000
12
5,000
$25
$20
10
(22)
(26)
(33)
3,382
3,356
3,323
3,333
$16.5
$16.7
$17.2
$17.4
$26.4
4,000
3,000
$15
Retail Stores
USD Billions
$30
2,000
$10
1,000
$5
$6.0
$6.1
$6.3
$6.3
$8.8
$8.6
$8.5
$8.2
$8.4
$8.7
$8.7
$0
03
04
05
Source: MVI estimates; company reports
06
07
08E
Total Retail Sales
5-37
09E
FE Sales
10E
11E
Stores
12E
13E
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Rite Aid’s Top Priority is Generating
Cash Flow to Begin Deleveraging
Adj. EBITDA and Margin
962.8
$1,000
$800
$600
726.0
4.3%
675.6
696.9
3.9%
4.0%
4.0%
965.1
3.7%
$400
$200
$0
2004
2005
2006
Adj. EBITDA (millions)
2007
Debt and Debt / Adj. EBITDA
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
2008
$7,000
10.0
$5,985.5
$6,000
$6,011.7
8.0
$5,000
$4,000
$3,000
9.0
7.0
$3,311.3
4.6X
$3,051.4
$3,100.3
4.5X
4.4X
6.2X
6.2X
6.0
5.0
4.0
3.0
$2,000
2.0
$1,000
1.0
$0
2004
2005
2006
Total Debt (millions)
2007
2008
Debt/Adj. EBITDA (x)
Adj. EBITDA % Sales
5-38
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Debt Maturity Profile
USD in Millions
(Estimate effective November 29, 2008)
• Effective November 29, 2008, Rite Aid reported USD6,347.7 million of debt and capital
leases outstanding, excluding off balance sheet operating lease obligations with an estimated
debt equivalent of approximately USD10 billion
• Last summer’s debt refinancing, though costly, bought time to execute turnaround plan
• Plan to refinance the revolver and tranche 1 term loan towards the end of 2009 / early 2010
• Refinancing expected to be a combo new revolver, term loan and senior secured notes
• No other significant debt maturities until June 2014
rce: Company reports, MVI research and analysis
5-39
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Customer Satisfaction Levels
Monday Ad Outs – Off Shelf
Financial Constraints
Compound Operational Issues
Source: MVI store visit
5-40
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Cash is King!
Cash Flow from Operations
Historical Gross Liquidity
600
518.4
$1,400
417.2
400
359.9
309.1
305.4
300
$1,494
$1,486
$1,600
500
$1,287
$1,267
$1,244
$1,084
$978
$933
$1,000
227.5
$1,240
$1,200
$800
200
$889
$824 $867
$681
$600
$400
79.4
100
$200
16.3
$0
0
FY01
FY02
FY03
FY04
FY05
FY06
FY07
4Q
FY08
2005
5-41
1Q
2Q
3Q
2006
4Q
1Q
2Q
3Q
2007
4Q
1Q
2Q
3Q
4Q
2008
Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Monthly Same Store Sales
Source: Company reports, MVI research and analysis
5-42
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Scale Helps, Doesn’t Fix Legacy
Decisions or Structural Issues
3rd Largest Chain in the
US with 4,900 Stores
138
38
900 in
the West
71
19
81
674
80
296
583
239
1
10
23
104
21
605
4,000 in
the East
69
165
46
277
147
43
7 (D.C.)
201
117
248
88
105
4,901 Stores in 31
States and D.C.
27
97
213
68
9% to 12% Store Base
6% to 8.9% Store Base
3% to 5.9% Store Base
0% to 2.9% Store Base
Source: Company reports, MVI Research
50% of Stores Located in 5 States,
Lack Presence in Key Growth States
5-43
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Segmentation Strategy
• Benefits of Segmentation
Enables key initiatives
• Focus efforts where highest
return is made
• Maximize limited resources
•
High Volume Store
Segmentation Example
Averge store sales
• Store Segmentation
•
•
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EBITDA margin
Consumer/demographics
Urban/suburban
High volume/low volume
Growth potential
Earnings
Major
Competitor
Rite Aid
Group A
$7.2 million
$7.2 million
7.0%
5.9%
$200 million opportunity if
Rite Aid achieves 7% EBITDA
How many of the 4,900 stores are
high volume vs. low volume? What
is the chain wide opportunity?
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Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
Rite Aid: Key Planning Considerations
• Living on “Borrowed” Time… Balancing Financial and Retail Realities
No longer about managing for profitability
• Plans must reflect risks and rewards
• Make a friend in credit / finance
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• The Path Forward… Stabilization, Execution and Differentiation
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On the ropes, next 3 – 12 months are pivotal
Must gain economies of scale and grow Rx scripts for survival
Focus on generics and PL will have a deflationary impact on top-line
Need to improve blocking and tackling to win her back
Variance across shopper and store base present challenges
• One Size Does Not Fit All… Focused on Unlocking the Value of Rite
Aid through Segmentation
Closing stores, consolidating DCs, cutting labor and expenses and
unlocking working capital
• Near-term pain necessary for long-term survival
•
THE WAY FORWARD: Tactical Defense and Execution
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Big 3: Key Planning Considerations
• Walgreens: Balancing Growth and Re-Invention
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More from the core, realignment of cost, culture and capabilities
Must improve the experience to grow basket – starts with shopper
Slowing growth shifts focus from square footage growth to optimization
THE WAY FORWARD: Partnership and Capabilities
• CVS/pharmacy: Brand Extension and Adaptation
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Put in a position to win, locked up share in key growth markets
Latest acquisition (Longs) will challenge the status quo
To gain share of wallet ($ and GP$) must capture share of values
Current climate will require more emphasis on traffic and value
THE WAY FORWARD: Alignment and Innovation
• Rite Aid: Stabilization, Execution and Differentiation
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Living on “borrowed” time… balancing new financial / retail realities
Must gain economies of scale, Rx script growth is a must for survival
Need to improve blocking and tackling to win her back
Focused on Unlocking the Value of Rite Aid through Segmentation
THE WAY FORWARD: Tactical Defense and Execution
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Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI
. . . A Partner in Your Success
Thank You!
Brendan Langan
Director of Retail Insight
Global Headquarters:
245 First Street
Cambridge, MA 02142
617.588.4116
blangan@mventures.com
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Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI