The CtW Investment Group sent a letter to Rite Aid’s largest shareholders on March 20,
2012 identifying its concerns regarding the strategic benefits of replica watches loyalty program Wellness+ and questioning whether management is providing enough information to shareholders about the program’s performance.
Customers use their Wellness+ membership to obtain discounts on items in Rite Aid’s stores as well as other
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benefits, and the company has credited the program with contributing to improved sales. However, the CtW Investment Group notes that sales per Wellness+ member have dropped more than 40% percent since
the second quarter of fiscal 2011, the first full quarter of the loyalty program’s existence.
This downward trend is one reason why the CtW Investment Group wrote to Rite Aid’s management about its disclosure issues in mid-February. After receiving no
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