Rite Aid Corporation History

Company Perspectives:

Our Mission: To be a successful chain of friendly, neighborhood drugstores. Our knowledgeable, caring associates work together to provide a superior pharmacy experience, and offer everyday products and services that help our valued customers lead healthier, happier lives.

Key Dates:

1958:

Alex Grass incorporates Rack Rite Distributors, Inc.

1962:

Through Rack Rite, Grass opens his first discount drugstore in Scranton, Pennsylvania, calling it Thrif D Discount Center.

1963:

Creation of a drugstore chain begins with the opening of five more stores.

1966:

The first Rite Aid pharmacy opens in one of the firm's drugstores in New Rochelle, New York.

1967:

Seventy Rite Aid private-label products are introduced.

1968:

The firm makes its first public offering of stock and changes its name to Rite Aid Corporation.

1969:

The firm's first major acquisition is the 47-store Daw Drug Co. of Rochester, New York.

1982:

Rite Aid opens its 1,000th store.

1983:

Revenues surpass $1 billion.

1995:

Perry Drug Stores Inc. is acquired; Martin Grass succeeds his father, Alex Grass, as Rite Aid's chairman and CEO.

1996:

Rite Aid expands to the West Coast through a $2.3 billion deal for Thrifty PayLess Holdings, Inc.

1997:

The acquisitions of K&B, Incorporated and Harco, Inc. add more than 300 stores located in the South.

1999:

Pharmacy benefits manager PCS Health Systems, Inc. is acquired for $1.5 billion; Rite Aid enters into partnerships with General Nutrition Companies, Inc. and drugstore.com; the company begins restating earnings from previous years because of accounting irregularities; this, coupled with financial difficulties brought on by a huge $6.7 billion debt load, leads to the ouster of Chairman and CEO Martin Grass; Robert G. Miller is brought in from the outside as his successor.

2000:

Rite Aid further restates its earnings for 1998 and 1999, revealing an additional $1.06 billion in losses; PCS Health Systems is sold off.

2002:

Martin Grass and three other former Rite Aid executives are indicted on federal criminal charges stemming from the accounting scandal.

2003:

Mary F. Sammons is named president and CEO; Grass pleads guilty to two criminal counts.

Company History:

Further Reading:

• "Bar Codes and RFDC Fill the Information Gap at Rite Aid," Modern Materials Handling, October 1993.
• Barrett, Amy, and Karen Stevens, "Rite Aid Tells All--After the Storm Breaks," Business Week, February 22, 1999, pp. 36, 38.
• Berner, Robert, and Mark Maremont, "Lost Heir: As Rite Aid Grew, CEO Seemed Unable to Manage His Empire," Wall Street Journal, October 20, 1999, pp. A1+.
• Brookman, Faye, "Grass Leaves a Mixed Legacy at Rite Aid," Women's Wear Daily, October 22, 1999, p. 9.
• Campanella, Frank W., "Recovery Room: Rite Aid Finds It in Its High-Margin Pharmacy Operation," Barron's, January 19, 1987, pp. 35+.
• Coleman, Calmetta Y., "Rite Aid's Rapid Expansion Poses Problem for Chain," Wall Street Journal, September 3, 1998, p. B4.
• Condon, Bernard, "Like Father, Like Son. Sort Of," Forbes, June 1, 1998, pp. 90, 92.
• Dochat, Tom, "Rite Aid Keeps Its Focus on Building 'on Good Results,'" Harrisburg (Pa.) Patriot-News, June 22, 2003, p. A1.
• ------, "Stockholders to Settle Rite Aid Lawsuit," Harrisburg (Pa.) Patriot-News, October 16, 2002, p. D6.
• ------, "Under New Team, Rite Aid Changes Its Ways," Harrisburg (Pa.) Patriot-News, June 22, 2002, p. A5.
• "Eagle Managed Care: A Wrong Way and a Rite Way," Drug Topics, September 5, 1994.
• Fried, Lisa I., "Rite Aid Keeps Getting Bigger and Bigger," Drug Store News, April 27, 1998, pp. 133+.
• Gerber, Cheryl, "High Tech Pain Killer," Forbes ASAP, December 4, 1995, pp. 108-10.
• "Groomed for Success," Chain Store Age Executive, April 1995, pp. 25-28.
• Hannon, Kerry, "The Doctor Is In," Forbes, July 13, 1987, p. 426.
• Harris, Gardiner, "Rite Aid to Sell Its PCS Unit for $800 Million," Wall Street Journal, July 12, 2000, p. B2.
• Hussey, Allan F., "Prescription at Rite Aid Calls for Profits Rebound," Barron's, November 17, 1975, p. 63.
• Johnsen, Michael, "On Steadier Ground, Rite Aid Sets New Goals," Drug Store News, July 21, 2003, pp. 51, 61.
• Kilman, Scott, "Rite Aid Ex-Officials Charged in Accounting-Fraud Probe," Wall Street Journal, June 24, 2002, p. A2.
• Lipin, Steven, "Rite Aid to Pay $1.4 Billion for Thrifty," Wall Street Journal, October 14, 1996, p. A3.
• Lipin, Steven, and Robert Berner, "Rite Aid to Buy Lilly Business for $1.5 Billion," Wall Street Journal, November 17, 1998, p. A3.
• Longo, Don, "The Maestro of Rite Aid's Recovery," Retail Merchandiser, February 2004, pp. 19+.
• "Lost in Space," Financial World, November 21, 1995, pp. 46-47.
• Maremont, Mark, "Call to Account: Rite Aid Case Gives First View of Fraud on Trial," Wall Street Journal, June 10, 2003, pp. A1+.
• Maremont, Mark, and Robert Berner, "Family Affairs: Rite Aid Does Business with Firms Linked to CEO Martin Grass," Wall Street Journal, January 29, 1999, pp. A1+.
• Murray, Matt, and Bryan Gruley, "Rite Aid Corp. Abandons Revco Deal, Blaming FTC for Aggressive Opposition," Wall Street Journal, April 25, 1996, p. A3.
• Nelson, Brett, "Looking Up--Maybe," Forbes, March 4, 2002, pp. 64-66.
• "Rite Aid Sees a Future in Capitated Managed Care," Drug Topics, November 1993, p. 52.
• "Rite Aid's Softer Side," Chain Store Age Executive, April 1995, p. 28.
• Sherrid, Pamela, "Rite Place, Rite Price," Forbes, November 23, 1981, pp. 87+.
• Spurgeon, Devon, and Mark Maremont, "Rite Aid Posts $1.14 Billion Loss for Year," Wall Street Journal, July 12, 2000, p. A3.
• Tosh, Mark, "Pushing Recovery's Boundaries," Drug Store News, April 29, 2002, pp. 74, 127.
• Weber, Joseph, et al., "Seizing the Dark Day," Business Week, January 13, 1992, pp. 26-28.

Source: International Directory of Company Histories, Vol.63. St. James Press, 2004.

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