Rite Aid (NYSE:RAD) announced its first-ever Innovation Challenge, a search for product ideas that can help improve the health and well-being of its consumers. In partnership with Edison Nation Medical, the winning idea will be designed and patented and then exclusively sold at Rite Aid stores.
"Rite Aid is excited to hold its first-ever Innovation Challenge because we believe that our customers, who inspire us every day, are the best partners to help us develop unique products to meet their individual wellness needs and likely those of many of our other customers," said David Abelman, Rite Aid senior VP of brand development and innovation. "In addition to reinforcing Rite Aid's commitment to innovation, this customer-centric challenge gives consumers the opportunity to become product inventors and assist Rite Aid in bringing new, meaningful products to our customers."
Rite Aid has been focusing on expanding its footprint in the wellness category. Last spring, the company acquired RediClinic, a retail clinic operator, and expanded its health coaching program for people with chronic ailments through an acquisition of Boston-based Health Dialog Services.
The winner will receive a $2,500 advance and ongoing royalties from product sales. The inventor will also have his or her name on any patent associated with the product. Rite Aid is not setting a limit on the number of winning ideas that will be selected, but it will choose products that successfully pass Edison Nation Medical's eight-stage evolution process.
The challenge runs through March 31 and each idea submitted requires a $25 entry fee.
Rite Aid has 4,600 stores in 31 states and reported $25.5 billion in revenue for 2014. Earlier this month, the drugstore chain announced it would acquire pharmacy benefits management company EnvisionRx for $2 billion.
-See this Rite Aid press release
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