Senior Citizens Prove Lucky For Rite Aid Corporation (NYSE:RAD)
Most marketers would be least concerned about targeting seniors in their campaigns. But it is this very segment that is proving to be a primary factor in Rite Aid Corporation (NYSE:RAD)’s comeback efforts. At the start of the year, the company expanded its wellness and loyalty program in a very aggressive manner and launched a nationwide effort to target seniors to enroll for it. The company’s strategy worked and over 930,000 seniors went onto enrolling in the wellness65+ program.
The lucrative move
This move can prove to be a lucrative one for the company. The fact of the matter is that seniors require more medications than other people and the volume of monthly non-prescription buys they make far exceed that of any other age group. Rite Aid Corporation (NYSE:RAD) has been a laggard in comparison to its peers like Walgreens and CVS but there has been some indication that the company is on a comeback trail.
Last spring, the company reported its very 1st profitable-year since 2007. The senior VP-marketing at the company said that pharmacy is Rite Aid Corporation (NYSE:RAD)’s core business and 70% of its revenue comes from this segment. It is largely seniors who end up filling out prescriptions. He added that seniors are difficult to acquire as customers, but once they have been acquired, they will stick to the brand.
In Wednesday’s trading, Rite Aid Corporation (NYSE:RAD) rose by 0.59%. The opening price of the shares was $5.15, which climbed to an intraday high of $5.19 and dipped to a close of $5.14. Approximately 23.58 million shares were traded on Wednesday while an average volume of 36.18 million shares were traded over a 30 day period. The 52-week low of Rite Aid Corporation (NYSE:RAD) shares is $0.95 and its 52-week high is $5.33. The company has a market capitalization of $4.71billion.