Tomahawk, WI 05/25/2014 (Basicsmedia) – Rite Aid Corporation (NYSE:RAD) remains the nation’s largest drugstore retail chain and as of April26, 2014, the Company has ~4,600 and 30 walk-in clinics. In last fiscal year (FY2014), the drug retailer has revenues of ~25.5 billion including front-end and pharmacy sales with adjusted EBITDA of $1.325 billion. The drug retailer continues to report year over year growth in its comparable store sales with growing demand over prescription and generic drugs.

Monthly sales

Recently, Rite Aid Corporation (NYSE:RAD) reported its sales results for the month of April. The same store sales increased by 5% compared to prior year period due to 4.7% year over year increase in front-end same store sales as a result of a shift in Ester.

Pharmacy same stores also showed an increase of 5.2% with an increase in prescription sales, but, the introduction of new generics affects the sales by 138 basis points due to the availability. So, the drugs store sales were up by 4.9% to $1.995 billion versus $1.902 billion in same period 2013. Prescription sales represented ~68% of total drugstore sales and third party prescription sales accounted 97.4% of overall pharmacy sales.

Year to date sales

As of now, the same store sales for the fiscal 2015 were up by only 2.9% over prior year period with 4.3% year over year increase in pharmacy same store sales. It offset the 0.2% decline in front-end sales.

Total drugstore sales for the eight weeks period was $3.941 billion, up by 2.6% compared to $3.841 billion same period last year with increasing prescription counts by 1.7%. Prescription sales accounted ~69% of total sales and third party prescription accounted for 97.4% of overall pharmacy sales.

The driving factors

The factors like the changing healthcare environment, growing demand of more scripts from older patients and the Affordable Care Act will continue to support growth in prescriptions. Moreover, increasing investments over affordable generic drugs and the introduction of new generics will further improve the pharmacy sales in coming months.

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