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Forbes reports that Rite Aid’s partnership with Supervalu, which added Save-A-Lot- style grocery sections to 10 South Carolina drug stores, has largely been a real success, laying the groundwork for further expansion.

According to the story, “CEO John Standley told analysts Thursday during a conference call to discuss quarterly results that sales for the front-end, or non-pharmacy areas, of these stores have doubled on average. Some stores have even seen their front-end sales triple, although margins can be lower thanks in part to products like perishable items. He said the company needs a few more months to understand the economics of the concept.”

Standley said the format could be a powerful concept for urban markets. “I think it could be.,” he said. “And I think it's real exciting to take a store that was a low volume store that was doing $20,000 a week on the front end and make it do $60,000 or $70,000. That's a pretty good answer for us, and we have some real estate that fit this demographic very nicely.”
KC's View:
I repeat: The most important thing for retailers to remember is this: Shoppers don’t care about formats. They only care about what is relevant to their particular needs and desires.