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.
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Rite Aid’s Inventory Problems Threaten Customer Loyalty
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
Bloomberg Businessweek: Rite Aid Out-of-Stock Items Hurt Shopper Loyalty, Unions Say
April 9, 2012
By Chris Burritt
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