Rite Aid (RAD) Prioritizes Actions Amid Coronavirus Woes

Rite Aid Corporation RAD is among the few retailers that have been working on the frontline, providing communities with medications, essential supplies and coronavirus-related information. Furthermore, beginning Mar 23, Rite Aid has been piloting COVID-19 testing at one location in Philadelphia, providing assistance to curb the coronavirus pandemic.

To ensure efficient delivery of medicines, the company is providing home delivery service to customers with eligible prescription and for a zero delivery fee. However, it clarified that products such as refrigerated medications and controlled substances will not be eligible for delivery. Apart from this, Rite Aid will offer pick-up services for prescriptions and over-the-counter products, and customers can use the drive-through option available at more than 50% of its retail locations.

Moreover, the company will continue to operate its online business — RiteAid.com. Customers, who belong to the Rite Aid wellness+ reward program, will be able to access healthcare professionals and pharmacists at 1-800-Rite Aid or via live chat on its website. Further, the company has partnered with other pharmacy-benefit organizations and local physicians to ensure that customers can avail the required medication along with hand sanitizers, cleansers and rubbing alcohol.

 

Unlike other major retailers, the drugstore chain has kept its stores open, with increased staff to fulfill delivery orders faster. It has also imposed limits on in-store and online purchases of certain items so that the products can reach the maximum number of people in need.

Additionally, on Apr 8, Rite Aid undertook hiring to overcome the challenging situation spurred by the coronavirus outbreak. The company plans to hire 5,000 full-time and part-time associates across the United States to serve customers better. The move will offer additional support to provide medications, essential supplies and coronavirus-related information through stores and distribution centers.

Management has also come up with a Hero program to acknowledge the efforts made by its employees. The program offers hourly associates a Hero pay hike of $2 per hour, starting Mar 15, which will remain valid till May 2. Moreover, the company has provided a Hero bonus of $1,000 to current retail store members, including pharmacists, distribution center management and RediClinic professional associates. Also, the program includes a discount of 35%, effective Mar 24 until the end of April.

RediClinic, which is a fully-owned subsidiary of Rite Aid, has launched RediClinic@Home for the convenience of customers. This is a telehealth service, wherein patients can use video chat to contact clinicians. Customers can avail the option on a smartphone, tablet, laptop or desktop. The facility, which comes with online check-in and registration, is currently available in Delaware, Pennsylvania and Texas for a fee of $49 per visit. Also, the company accepts most of the insurance plans.

In sync with its objective to safeguard employees, Rite Aid has introduced specific guidelines related to leaves due to the ongoing pandemic. As part of the guidelines, the company’s new pandemic pay policy offers compensation to an employee, who has been either diagnosed with the virus or quarantined. It is also implementing certain protocols such as the usage of masks and gloves to ensure the safety of associates and customers.

 

These efforts have been boosting investors’ confidence on the stock. In the past three months, shares of this Zacks Rank #2 (Buy) company have rallied 10.4% against the industry’s decline of 21.2%.

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