Rite Aid reverses 'no brokers' policy

Drug Store News, April 24, 2000

CAMP HILL, Pa. -- The "No brokers" sign has been pulled down at Rite Aid's headquarters here. In a reversal of a controversial year-old policy, Rite Aid has notified its vendors that manufacturers' representatives, or brokers, are now welcome at the chain's headquarters. The change was disclosed in a letter to vendors dated March 21.

The move comes just three months after the chain overhauled its top management ranks with two former Fred Meyer veterans: Bob Miller, the new chairman and chief executive, and Mary Sammons, president and chief operating officer. Martin Grass, the chain's former chief executive, had been instrumental in Rite Aid's move to a direct approach with its vendors.

The letter to vendors, in part, stated: "Our objective is to have direct dedicated sales teams partnering with our category managers. If you believe that a broker can best facilitate a relationship between your company and Rite Aid, we ask that you contact one of our vice presidents for category management." Jim Mastrian, executive vice president of marketing, signed the letter.