Persistent out-of-stock sale items at Rite Aid are undermining the company’s Wellness+ loyalty program.  In recent years, the company has acknowledged the need to improve its inventory management practices, and studies show that product availability is a key component of building trust with customers. If the company’s inventory problems continue, and Wellness+ members continue to find Rite Aid locations out-of-stock of advertised items, both customer loyalty and investor confidence may suffer.

Recent Investment Alert:

Rite Aid’s Inventory Problems Threaten Customer Loyalty

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Rite Aid’s inventory management problems may hamper the struggling retailer’s turnaround efforts, according to a new report by Rite Aid Disclosure Watch.  The report, titled Not as Advertised: Out-of-Stock Sale Items and Rite Aid’s Bid for Customer Loyalty, documents a continued problem of out-of-stock promotional inventory in Rite Aid stores and raises questions about the company’s ability to successfully execute key elements of its Wellness+ loyalty program. Read More

Recent News:

Bloomberg Businessweek: Rite Aid Out-of-Stock Items Hurt Shopper Loyalty, Unions Say
April 9, 2012
By Chris Burritt

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Rite Aid Corp. (RAD)’s failure to keep items such as Maxwell House coffee and Charmin toilet paper on its drugstores’ shelves is hurting a shopper loyalty program intended to boost sales, according to a labor federation representing a quarter of the retailer’s workers. Read More