Rite Aid said on Tuesday that it would close 63 stores to reduce costs and improve profitability.- Associates from closed stores will get opportunities to work at different locations, Rite Aid said.
Rite Aid CEO Heyward Donigan announced on Tuesday that the chain would close at least 63 stores to reduce costs and improve profitability.
Donigan said she planned to move away from traditional in-store
The pharmacy has not said which locations will close. Associates at stores that close will have the opportunity to transfer to another location, Rite Aid said.
"The decision to close the store is one we take very seriously as we evaluate the impact on our associates, our customers, and our communities," Donigan said in a call with investors.
Rite Aid reported a quarterly revenue increase of 1.8% over the same period last year, to $6.23 billion.
A competing pharmacy chain, CVS, announced last month that it would close 900 stores over the next three years to allow locations to shift formats to primary-care services and health and wellness centers.
Direct-to-consumer pharmacy startups have pushed traditional players like CVS and Rite Aid to innovate, Insider's Lydia Ramsey reported last year. Tech companies like Amazon and Uber have also started delivering medications.
As traditional pharmacies have closed, Amazon, which entered the prescription-delivery business in 2020, has considered setting up physical locations.