Boston, MA 10/23/2013 (wallstreetpr) – Over the past few quarters, Rite Aid Corporation (NYSE:RAD) has seen a positive activity of its stock at the browsers. In the 30 days trading period in September, the drug retailer had its stock appreciate in value by 12%. And in the past quarter, this stock has witnessed an upside of 82%, this is quite a strong run. The reason RAD has seen these good figures lately is because of its increased campaign to connect with potential buyers and also putting in strategies to retain them. In effect, this has appeared to be paying off really well. Another strategy that has worked well in boosting the performance of this drug seller is its spirited efforts to get back its lost market share against competitors CVS chains and Walgreens.
RAD has initiated a loyalty program, a new concept that is based around wellness programs, in a bid to bring more buyers to its products. Through this wellness loyalty program, the drug seller has been able to attract and retain around 930K new customers. The majority of this new customer base is senior citizens. Targeting the senior citizen is a particular smart move by RAD considering that this group typically stick long to their purchase habits and are not easily swayed by competitors. It thus means RAD has reliable patronage in its wider senior citizen market segment.
It is because of the increased customer-base and spirited efforts to retain that base that has earned RAD $25 billion in sales in the past 12 months. The drug seller has also had a successful cost cutting and efficiency plans to drive down its operating cost. This has paid off with at least $296 million in net income for the training 12 months. Due its larger-than-expected momentum shown, its 200-day moving averaged has soared to an impressive 90%.
And over the past 12 months, the drugs retailer has seen its shares climb to astounding 344% which essentially sends a clear signal that this is a company that is delivering on the promise to return value to investors.
In the Tuesday, October 22, trading, RAD slipped 1.71% but gained 0.39 in the after hours. The shares closed $5.16, earning it $4.73 billion in market cap.
