Rite Aid to add groceries

NEW YORK -- Rite Aid said Tuesday it will add discount groceries to some of its stores in the South Carolina Upstate as it tests out a partnership with Supervalu.

Rite Aid said it will add Save-A-Lot grocery products to its 10 stores in and around Greenville.

The stores will be remodeled by October, and renamed Save-A-Lot Food Stores/Rite Aid Pharmacy. Rite Aid will own and operate the stores. The Camp Hill, Pa., company said pharmacy operations at the stores won't change, but it will cut back on its selection of health and beauty products.

Save-A-Lot is a unit of Supervalu, which is based in Eden Prairie, Minn. Its stores sell produce and meats and household goods. There are about 1,200 Save-A-Lot stores in 39 states. Rite Aid had 4,747 stores in 31 states as of Aug. 28.

Rival Walgreen is preparing to test a similar program. This fall, a few Walgreen stores will start selling fruit and vegetables, soups, sandwiches and salads. The stores also might carry items like frozen pizzas and bag salads. Walgreen did not say when it will start testing the program or what markets it would choose.

Rite Aid described the deal as a licensing agreement. The companies did not disclose financial terms.

The deal is part of a "segmentation" plan in which Rite Aid is tailoring its business plans to different markets. It did not say where else it might try the grocery store plan if the pilot program is successful.