Tomahawk, WI 02/10/2014 (BasicsMedia) – It is not everyday that Rite Aid Corporation (NYSE:RAD) publishes its latest quarterly financial results, and announces that it saw an increase in its same store sales. This is what happened in January 2014 when the company released its financial results for December 2013. When the results were announced, the company said that it saw a 2.9 percent increase in its same store sales for December. The question being asked now is whether RAD can continue with the same trend and maintain similar growth levels in 2014, as what it achieved in December 2013.

Rite Aid Corporation (NYSE:RAD) can achieve such figures either on a monthly or quarterly basis. However, one challenge exists that the company must overcome if it hopes to perform better than it has done up to this point. The presence of new generic drugs is such a massive challenge for Rite Aid Corporation. This challenge is not limited or restricted to RAD alone, but also all other drugstores in the US. Generic drugs are better in that they attract higher margins compared to branded ones, but they are limited in that they fetch much lower prices than the other variety.

It would be impossible for Rite Aid Corporation (NYSE:RAD) to continue posting similar growth levels in terms of its same store sales as what it achieved in December 2013, not unless the issue of generic drugs is addressed adequately. There is a slight difference in same store sales for both nonpharmacy items and pharmacy items. The former’s same store sales rose by 1 percent, compared to 4.1 percent for the latter. Whereas RAD depends a lot on pharmacy items, it cannot neglect nonpharmacy items if it’s same store sales figures are to match what it posted for December.

Rite Aid Corporation (NYSE:RAD) had nothing good to report regarding sales from prescriptions, which experienced a drop of around 2 percent during the same period. In the past when RAD had better prescriptions sales, this was often attributed to an increase in flu-related prescriptions. During the period in question here, RAD experienced a shortfall in terms of flu-related prescriptions, and this inevitably led to the lower than expected prescriptions sales figures. The drop in flu shots also led to the lower than expected sales figures for prescriptions as announced by Rite Aid.

In total, Rite Aid Corporation (NYSE:RAD) saw a 2.7 percent increase in drugstore sales, where it announced that it had raised more than $2.11 billion. the continued growth in sales, as announced by Rite Aid Corporation, will continue having a positive bearing on the company’s stock. If the current trend continues, and at this point, it seems possible, nothing will hinder Rite Aid from enjoying favorably positive investor confidence. As third quarter earnings also rose, the company seems to be on the right track on many aspects, thus making it a worthwhile investment for anyone.

Rite Aid Corporation (NYSE:RAD) is not under any major threat, with the exception of the influence of generic drugs at the moment. Somehow, it needs to find a way of dealing with the influence that generic drugs bear on its stock, if it is to maintain similarly high and attractive levels of same store sales.

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