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Rite Aid Says New Amazon Partnership Will Create A 'Stronger' Customer Experience

Jayson Derrick

More than 1,500 Rite Aid Corporation (NYSE: RAD) stores will double as a pickup location for Amazon.com, Inc. (NASDAQ: AMZN) by the end of 2019.

What Happened

Amazon introduced Thursday a new service called Counter, a network of pickup points where consumers can walk into a Rite Aid store to pick up packages delivered to the store. The service is available at more than 100 Rite Aid stores and will expand throughout the rest of the year.

Counter will leverage Amazon's expanding supply chain infrastructure to give customers "yet another delivery option rooted in flexibility and control," Patrick Supanc, Worldwide Director of Amazon Hub, said in the press release.

Why It's Important

Shares of Rite Aid gained more than 25% in Thursday's trading session. The stock has lost about 75% of its value in the past year but being Amazon's first Counter partner is a "differentiator" for the company, Rite Aid Executive Vice President Jocelyn Konrad said in the press release.

Partnering with Amazon will "create a stronger in-store experience" for both new customers picking up their Amazon packages as well as existing customers, Konrad said.

Amazon said it continues to look for new partners for its Counter initiative, including large chains as well as small to midsize businesses.

Rite Aid traded higher by 24.4% to $8.86 per share at time of publication.

Related Links:

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Rite Aid Restructuring: CEO, CFO Out Along With 400 Full-Time Jobs

Photo credit: Mike Mozart, Flickr

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