September 10, 2008, 12:00 AM

Drugstore.com and Rite Aid write a new e-commerce agreement

Under the deal Rite Aid will launch an e-commerce site for over-the-counter products later this year, but will utilize Drugstore.com’s technology platform. RiteAid.com will feature well-known over-the-counter and its own private label brands.

Drugstore.com Inc. has signed a new e-commerce agreement with Rite Aid Corp. that helps Rite Aid establish its own web store for over-the-counter products.

Drugstore.com, No. 41 in the Internet Retailer Top 500 Guide, has provided Rite Aid with e-commerce support since 1999. Under the previous arrangement, all pharmacy orders processed through Drugstore.com or RiteAid.com could be shipped to the customer from Drugstore.com’s distribution center or, in the case of refills of existing Drugstore.com or Rite Aid prescriptions, picked up by the customer at a Rite Aid store.

Under the new agreement Rite Aid will launch an e-commerce site for over-the-counter items later this year, but will utilize Drugstore.com’s technology platform. The forthcoming RiteAid.com will feature well-known and private label brands. As another part of the new arrangement, prescriptions ordered online for pick up at a Rite Aid store will be transferred outright to Rite Aid. In return, Drugstore.com will receive a total of approximately $10 million in 10 monthly installments from Rite Aid. Going forward, Drugstore.com will also receive marketing services revenue for marketing Rite Aid`s prescription services on its site.

"This new agreement will leverage Drugstore.com`s health, beauty, and wellness e-commerce platform to benefit both companies," says Drugstore.com CEO Dawn Lepore. "Rite Aid will develop marketing programs to drive traffic to the new site, and given the differing demographics, we expect these sales to be incremental to Drugstore.com."

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