- Rite Aid said Tuesday it will close 63 stores to reduce costs and improve profitability.
- Associates from closed stores will get opportunities to work at different locations.
- CVS announced last month it would close 900 stores over the next three years.
Rite Aid CEO Heyward Donigan announced Tuesday that the chain will close at least 63 stores to reduce costs and improve profitability.
Donigan said he plans to move away from growing traditional in-store pharmacies instead to mail order and digital retail markets.
The pharmacy has not yet revealed which locations will close. Associates at stores that close will have the opportunity to transfer to another location.
"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 to investors Tuesday.
Rite Aid reported a quarterly revenue increase of 1.8% over the same period last year to $6.23 billion.
The company's decision to close pharmacies follows competing pharmacy chain CVS, which announced last month it would close 900 stores over the next three years. CVS said the move will 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 in the last few years, Insider's Lydia Ramsey reported. Tech companies like Amazon and Uber have also started delivering medications.
As traditional pharmacies close up shop, Amazon, which entered the mail delivery prescription business in 2020, has considered setting up physical locations.
