The Rite Aid Corporation is an American drugstore chain headquartered in Camp Hill, Pennsylvania. Founded in 1962, the company originally was called Thrift D Discount Center. The company is ranked 150 on the 2020 Fortune 500 list of the largest U.S. corporations. However, the company is much more than just a drugstore chain. It is a large American institution, with over 30,000 employees and more than a million members worldwide.
In its recent history, Rite Aid has gone through a transformation from a retail-based organization to one that focuses on health care. It has been working to reposition its business model so that it is more focused on health care and focusing on its subsidiary Elixir pharmacy benefits management services, through both physical and digital channels. Donigan also points to the potential growth of digital channels and has promised to continue these changes. Rite Aid will continue to invest heavily in these businesses to improve their performance and remain a viable option for many consumers.
In 2003, Rite Aid began exploring merger opportunities with Walgreens, but its shares fell in the process. During the late 1990s, Rite Aid’s share price dropped from $30 to $4.40. In 2003, Rite Aid’s CEO Mary Sammons became CEO. The merger is expected to take place over the next five years, with Walgreens acquiring roughly 30% of Rite Aid’s drugstores.