Rite Aid, one of the nation’s largest drugstore chains, announced on Thursday that it will rename itself “Rite Aid Corporation” effective Feb. 2.
The move comes as the company tries to revive flagging sales and compete with larger, more entrenched rivals.
The retailer said that it will continue to sell products under the names of its existing stores and products. However, the company said that it will use the “Rite Aid Corporation” name on marketing, advertising and website content.
“This is an important step in our strategy to help us better serve our customers and compete in a changing retail environment,” Rite Aid Corporation Chairman and CEO John Standley said in a statement.
Rite Aid Corporation is the latest large retailer to undergo a rebranding effort. Macy’s, J.
C. Penney, Sears and Kmart have all announced changes in recent months.
However, analysts questioned whether the changes would be enough to revive Rite Aid’s flagging sales. The company said that it had forecast a loss of up to $500 million for the fiscal year that ended in January.
“The proposed rebranding does not seem to be the panacea that Rite Aid needs,” C. Michael Armstrong, an analyst with I/B/E/S.
, wrote in a note to clients.
However, Rite Aid Corporation’s move could help the company improve its relationship with its customers, he added.
“This rebranding is a positive step in the right direction,” Armstrong wrote. “However, we remain cautious about the long-term viability of Rite Aid.”.
