Rite Aid Corporation History

30 Hunter Lane
Camp Hill, Pennsylvania 17011-2400

Telephone: (717) 761-2633
Toll Free: 800-748-3243
Fax: (717) 975-5871

Public Company
Incorporated: 1958 as Rack Rite Distributors, Inc.
Employees: 72,000
Sales: $16.54 billion (2004)
Stock Exchanges: New York Pacific
Ticker Symbol: RAD
NAIC: 446110 Pharmacies and Drug Stores

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:

Alex Grass incorporates Rack Rite Distributors, Inc.
Through Rack Rite, Grass opens his first discount drugstore in Scranton, Pennsylvania, calling it Thrif D Discount Center.
Creation of a drugstore chain begins with the opening of five more stores.
The first Rite Aid pharmacy opens in one of the firm's drugstores in New Rochelle, New York.
Seventy Rite Aid private-label products are introduced.
The firm makes its first public offering of stock and changes its name to Rite Aid Corporation.
The firm's first major acquisition is the 47-store Daw Drug Co. of Rochester, New York.
Rite Aid opens its 1,000th store.
Revenues surpass $1 billion.
Perry Drug Stores Inc. is acquired; Martin Grass succeeds his father, Alex Grass, as Rite Aid's chairman and CEO.
Rite Aid expands to the West Coast through a $2.3 billion deal for Thrifty PayLess Holdings, Inc.
The acquisitions of K&B, Incorporated and Harco, Inc. add more than 300 stores located in the South.
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.
Rite Aid further restates its earnings for 1998 and 1999, revealing an additional $1.06 billion in losses; PCS Health Systems is sold off.
Martin Grass and three other former Rite Aid executives are indicted on federal criminal charges stemming from the accounting scandal.
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.