Rite Aid to Close at Least 63 Stores in the Coming Months
Drugstore chain Rite Aid said Tuesday it plans to shutter at least 63 stores as it reassesses how many locations it needs, reports CNBC. The closures are part of a process that began in November and is expected to add $25 million in annual EBITDA, the company said in its latest earnings release.
A list of the dozens of stores Rite Aid plans to shut wasn’t immediately available. The drugstore chain operates more than 2,400 retail pharmacy locations in the U.S. Rite Aid added that it will continue evaluating its footprint over the next several months months and expects the closure count to increase as it finalizes its plans.
Total Retail's Take: Rite Aid is joining rival CVS in announcing store closures, however, for much different reasons. Rite Aid hasn't posted positive net income from continuing operations since the fiscal year covering 2016. During the pandemic, when drugstores became a convenient shopping venue and critical health service providers, those losses shrunk, but still remained above $100 million. Given those financial results, it's not surprising that Rite Aid is shrinking its physical footprint.
The closures are aimed at cutting costs, boosting profits, and ensuring Rite Aid has "a healthy foundation to grow from, with the right stores in the right locations, for the communities it serves and for our business," CEO and President Heyward Donigan said in a statement. It seems the company is fully re-evaluating its store portfolio and offerings, moving to closures from previously announced store redesigns with its RxEvolution rebranding effort launched in 2020.
Kristina Stidham is the digital content director at Women in Retail Leadership Circle and sister brand Total Retail. She is passionate about digital media and handles video, podcast and virtual event production for both brands. You can often find her at WIRLC, TR, or industry events with her camera and podcasting equipment recording interviews with retailers.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her two pet guinea pigs, and travel to new places.