Rite-Aid's turnaround plans are to transition into more of a neighborhood health clinic and away from the low margin drug retail store which is being encroached upon by Wal-Mart/Target who are additionally expanding into pharmacies and clinics. This would bring Rite-Aid inline with how CVS operates with their successful in-store pharmacy and MinuteClinc. Rite-Aid has already started with the acquisitions of RediClinc, a small Texas clinic business that they plan to add as a feature in stores and Health Dialog, a healthcare service business.While they are still debt heavy I believe management is on the right track to expand into healthcare service, remodel and modernize performing stores and promote their Wellness+ loyalty discount program. Once I see progress toward integrating clinics into stores I next expect to see partnerships with health insurance companies for me to remain invested.
